What are the best equity mutual funds?

Investors should be careful while investing in equity mutual funds since they are highly reactive to markets. Hence not considering all the aspects while choosing the best equity mutual funds can hamper you from wealth creation.

Equity mutual funds invest in stocks of various companies. Hence, these types of mutual funds show promising growth potential.

Equity mutual funds invests a minimum of 65% of its investible corpus in stocks. The rest of the allocation is done in other asset classes that provides a cushion for investors against the entire spectrum of risk.

Hence with the benefit of diversification, investors also get other benefits like tax benefits (under Section 80C of IT Act), expert management, high returns potential, etc. Investors with a mindset of collecting a huge corpus can invest in the best equity funds in India.

Here are some best equity funds for 2021 in India.

Category Schemes MF Rating Strength 1 Yr 3 Yr 5 Yr
Multi Cap UTI Equity Fund Strength 26.73% 14.46% 14.37%
Parag Parikh Long Term Equity Fund Strength 31.13% 14.31% 15.17%
Focused Axis Focused 25 Fund Strength 17.61% 11.89% 16.37%
Motilal Focused 25 Fund Strength 15.78% 9.38% 12.69%
Large Cap Axis Bluechip Fund Strength 15.85% 14.35% 15.10%
UTI Mastershare Unit Scheme Strength 16.02% 9.48% 11.83%
Large & Mid Cap Tata Large and Mid Cap Fund Strength 15.01% 8.70% 11.46%
Kotak Equity Opportunities Fund Strength 16.46% 8.33% 13.42%
Mid Cap DSP Mid Cap Fund Strength 24.09% 8.08% 14.44%
Axis Mid Cap Fund Strength 22.76% 13.74% 14.99%
Small Cap Kotak Small Cap Fund Strength 33.68% 6.32% 13.23%
Axis Small Cap Fund Strength 21.53% 10.33% 14.41%
ELSS Axis Long Term Equity Fund Strength 17.91% 12.44% 14.26%
Canara Robeco Equity Tax Saver Fund Strength 23.61% 13.00% 13.70%
Thematic Axis ESG Equity Fund Strength - - -
DSP Quant Fund Strength 22.72% - -

* The above ranking is as on 16th December 2020. To check the latest data and ranking of all mutual funds click here.

Note: Axis ESG Equity Fund and DSP Quant Fund are relatively new in the markets. Hence, not enough data is available to calculate its returns. Also, know the right time to invest in these right funds so that you avoid buying overvalued funds. For more details, visit RankMF.com

Not only the right funds, but also the right time to invest in equity funds is equally important which investors neglect. Funds valuation can be undervalued or overvalued, if investors tap in buying funds that may be overvalued then their returns may not be optimised.

To tackle this, investors can invest in SmartSIP that is an advanced option to SIP and invests smartly depending on the market volatility. Here’s what SmartSIP does:

  • Invests regularly when markets are fairly valued
  • Invests double when markets are undervalued
  • Skips investing & partially sells to profit when markets are overvalued

Get detailed information on how SmartSIP works and how it is an advanced investment option to SIP and lump sum.

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Are equity mutual funds a good investment?
Equity mutual funds have high returns potential. Along with the diversification and other benefits it offers, equity mutual funds can be a good investment option.
What are the best equity funds for 2021?
Here is a list of best equity funds:
UTI Equity Fund
Parag Parikh Long Term Equity Fund
Axis Focused 25 Fund
Motilal Focused 25 Fund
Axis Bluechip Fund
UTI Mastershare Unit Scheme
Tata Large and Mid Cap Fund
Kotak Equity Opportunities Fund
DSP Mid Cap Fund
Axis Mid Cap Fund
Kotak Small Cap Fund
Axis Small Cap Fund
Axis Long Term Equity Fund
Canara Robeco Equity Tax Saver Fund
Axis ESG Equity Fund
DSP Quant Fund
Is the right time to invest also important in equity mutual funds?
Right time to invest is just as important as the right fund to invest in. Funds may be undervalued or overvalued at a particular time. If investors buy overvalued funds then that may lead to suboptimal returns or negative returns too in the worst case scenario.