Top Rated Equity Mutual Funds in 2024 - Best Equity Funds

Scheme Name	Min. Investment	AUM (in Cr.)	Rating	1Y Returns	3Y Returns	5Y Returns
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Scheme Name

Min. Investment

AUM (in Cr.)

Rating

1Y Returns

3Y Returns

5Y Returns

Sorry, No Data Available at this Moment!

Returns on Equity Funds

Total Investment

₹ 1,20,000

Gain

₹ 40,000

Current Value

₹ 1,60,000

Montly SIPLumpsum

You have invested

1 Year3 Year

Check the Returns of Your Investment in

About Equity Funds

Equity Mutual Funds are mutual fund schemes that invest majorly in stocks of different companies. They invest in a wide range of industries and sectors to provide you with diversification benefits. You can earn returns from these funds in two ways: capital appreciation and dividends. The following are the main features of Equity Funds:

Equity Mutual Funds focus a large percentage of their fund corpus on stock investments, with the main objective of offering capital growth.
When selecting stocks to buy, fund managers conduct extensive research and analysis to identify businesses with the potential for substantial growth.
Equity Funds can outperform inflation and generate wealth over time. Historical data show that equity has consistently been one of the best-performing asset classes.
By spreading the investment portfolio among an extensive variety of stocks, equity funds mitigate risk and offer higher returns than traditional investments.

Equity Mutual Funds offer you a high risk-return ratio that can endure long-term market volatility and inflation. It can act as a powerful tool that can provide you the exposure to the constantly evolving stock market without requiring the selection of particular stocks.

Equity Mutual Funds are considered one of the best options for investing for long-term wealth accumulation. There are many advantages of investing in Equity Funds as mentioned below:

Equity Funds have historically outperformed other asset classes such as debt.
By investing in a range of stocks, these funds help you to diversify your portfolio. This can lower your risk and shield your money from unpredictable market movements.
When compared to fixed-income investment options, Equity Mutual Funds provide substantial capital appreciation. This ability not only makes this fund category a long-term investment option but also a shield against inflation.
Fund managers research the market, evaluate the performance of companies, and then select the best-performing stocks to purchase and maximize returns.
Equity-linked savings scheme (ELSS) is part of equity funds, which is specially designed for saving taxes. Investing in these funds allows you to reduce your taxable income by up to Rs. 1.5 lakh.

The benefits of investing in Equity Funds are endless, however, they are risky too. Thus, your risk tolerance and financial objectives should be taken into account when investing.

Here are some of the factors you need to consider before investing in these funds:

Equity Funds tend to be more volatile than other types of assets like bonds or fixed deposits. Equity funds may be a good fit if you have a high-risk tolerance and a long time horizon.
Professional fund managers manage equity funds and make investment choices on behalf of investors. This makes it attractive for investors who do not have the time and knowledge to invest in individual stocks.
Investments can be using the lump sum option or gradually over time using the Systematic Investment Plan (SIP) mode. This makes it affordable for investors with low ticket sizes, too.
Equity investments are typically better suited for long-term goals. If you require funds in the short term, the volatility of equity markets may not be appropriate, as you may not have enough time to recover from market downturns if any.

Remember that, the fund's value may change depending on the condition of the market. Short-term market volatility may cause a temporary decline in your investment value. It is recommended to have a long-term approach. Also, check your investment goals and risk tolerance to decide if these funds are the right fit for you.

Equity Funds can be an appealing option for a wide range of investors:

Equity Funds are ideal for those who want to invest in stocks but lack expertise or time. The fund manager handles stock selections and portfolio rebalancing, easing the pressure on investors to choose the right stocks.
If you are someone who doesn't want to invest high capital into stock markets, then Equity Funds are a great way to start via SIP investments. Using equity funds, you can start investing from as low as Rs. 500.
If your goals are for the longer term like saving for retirement or child education, Equity Funds can be considered. To get the maximum leverage from equity funds, you need to stay committed to the investments for at least 5-10 years. It will provide your funds the much-needed time to withstand ups and downs in the market.

Make sure to invest for a longer horizon and reduce the impact of short-term and unpredictable market fluctuations.

Equity Mutual Funds focus a large percentage of their fund corpus on stock investments, with the main objective of offering capital growth.
When selecting stocks to buy, fund managers conduct extensive research and analysis to identify businesses with the potential for substantial growth.
Equity Funds can outperform inflation and generate wealth over time. Historical data show that equity has consistently been one of the best-performing asset classes.
By spreading the investment portfolio among an extensive variety of stocks, equity funds mitigate risk and offer higher returns than traditional investments.

Equity Mutual Funds are considered one of the best options for investing for long-term wealth accumulation. There are many advantages of investing in Equity Funds as mentioned below:

Equity Funds have historically outperformed other asset classes such as debt.
By investing in a range of stocks, these funds help you to diversify your portfolio. This can lower your risk and shield your money from unpredictable market movements.
When compared to fixed-income investment options, Equity Mutual Funds provide substantial capital appreciation. This ability not only makes this fund category a long-term investment option but also a shield against inflation.
Fund managers research the market, evaluate the performance of companies, and then select the best-performing stocks to purchase and maximize returns.
Equity-linked savings scheme (ELSS) is part of equity funds, which is specially designed for saving taxes. Investing in these funds allows you to reduce your taxable income by up to Rs. 1.5 lakh.

The benefits of investing in Equity Funds are endless, however, they are risky too. Thus, your risk tolerance and financial objectives should be taken into account when investing.

Here are some of the factors you need to consider before investing in these funds:

Equity Funds tend to be more volatile than other types of assets like bonds or fixed deposits. Equity funds may be a good fit if you have a high-risk tolerance and a long time horizon.
Professional fund managers manage equity funds and make investment choices on behalf of investors. This makes it attractive for investors who do not have the time and knowledge to invest in individual stocks.
Investments can be using the lump sum option or gradually over time using the Systematic Investment Plan (SIP) mode. This makes it affordable for investors with low ticket sizes, too.
Equity investments are typically better suited for long-term goals. If you require funds in the short term, the volatility of equity markets may not be appropriate, as you may not have enough time to recover from market downturns if any.

Equity Funds can be an appealing option for a wide range of investors:

Equity Funds are ideal for those who want to invest in stocks but lack expertise or time. The fund manager handles stock selections and portfolio rebalancing, easing the pressure on investors to choose the right stocks.
If you are someone who doesn’t want to invest high capital into stock markets, then Equity Funds are a great way to start via SIP investments. Using equity funds, you can start investing from as low as Rs. 500.
If your goals are for the longer term like saving for retirement or child education, Equity Funds can be considered. To get the maximum leverage from equity funds, you need to stay committed to the investments for at least 5-10 years. It will provide your funds the much-needed time to withstand ups and downs in the market.

Make sure to invest for a longer horizon and reduce the impact of short-term and unpredictable market fluctuations.

Frequently Asked Questions

Equity funds pool money from various investors to invest primarily in stocks of companies. In India, a typical equity fund invests at least 65% of its assets in equities, aiming for capital growth over the medium to long term. Managers decide which stocks to buy or sell based on research and market trends, striving to maximize returns.

Equity funds in India are typically invested in the stock market, purchasing shares of publicly listed companies. They may focus on different sectors, company sizes (like large-cap, mid-cap, small-cap), or themes (like technology or healthcare), depending on the fund's objective. This diversification helps manage risk while seeking growth.

Equity funds aim to generate profits by investing in the stock market, but returns are not guaranteed. Their performance depends on market conditions and the skill of the fund manager. While they have the potential for high returns compared to other investment types, they also come with higher risk, especially in the short term.

No, equity funds are not tax-free in India. However, they do enjoy certain tax advantages. Long-term capital gains (on investments held for more than a year) above ₹1 lakh are taxed at 10% without indexation benefit. For short-term gains (investments held for less than a year), the tax rate is 15%.

Choosing the best equity fund involves assessing your risk tolerance, investment goals, and time horizon. Look for funds with consistent performance over different market cycles, reputable fund managers, and reasonable fees. Consider the fund's focus area, such as specific sectors or market caps, to align with your investment strategy.

No, it's not necessary to open a Demat account to invest in Equity Funds in India. While a Demat account is required for buying shares directly from the stock market, you can invest in Equity Funds through mutual fund accounts, which fund houses or online investment platforms can help you set up without needing a Demat account.

The choice between lumpsum investment and SIP (Systematic Investment Plan) in Equity Funds depends on your financial situation and risk tolerance. SIPs allow you to invest a fixed amount regularly, benefiting from rupee cost averaging and reducing market timing risk. Lump Sum investments might be suitable if you have a large sum of money ready to invest when the market is favourable.

To start an Equity Fund SIP online, follow these 4 steps:

Open Demat Account
Choose the Equity Fund you wish to invest in.
Choose the SIP option, specifying the amount and SIP date
Set up an auto-pay via bank account to automate the SIP payments

Yes, you can sell or redeem your Equity Fund units on any business day, without any restrictions in most cases. However, keep in mind that selling units within a short period after purchase may incur exit load charges by some funds, and the sale proceeds are subject to capital gains tax.

Generally, there is no lock-in period for most Equity Funds, allowing you to buy and sell units at any time. However, specific categories like ELSS (Equity Linked Savings Scheme) funds have a lock-in period of 3 years from the date of investment, offering tax benefits under Section 80C of the Income Tax Act.

Equity Funds are subject to market risk, meaning the value of your investment can fluctuate based on stock market movements. Other risks include specific risks related to the sectors or companies the fund invests in, management risk, and the risk of not meeting investment objectives. Equity Funds are generally suitable if you have a higher risk tolerance and a long-term investment horizon.

No, Equity Funds are not 100% safe. They invest in the stock market, which is subject to volatility and can experience both upward and downward movements. While Equity Funds have the potential for higher returns, they come with debt fund deposits. It's important to consider your risk tolerance and investment horizon before investing in Equity Funds.