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

Open a free mutual fund investment account with India’s best mutual fund distribution platform & get started with your investment in the best equity funds today.

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