What are the Best Equity Mutual Funds?

Equity Mutual Funds invests in equity shares of companies. According to SEBI, if a fund invests 65% of its portfolio or more than that, then it is classified as an equity-oriented fund.

The best equity mutual funds are those who invest more than 65% of its portfolio in stocks. Such funds are actively or passively managed. It is believed that the best equity mutual funds tend to give high returns on medium and long-term cap investment.

They are considered risky because they are heavily invested in stocks. The value of the fund may fluctuate. In addition, because of this, aggressive investors prefer the best equity mutual funds.

There are various parameters. You need to analyze before choosing the fund.

Who should invest in Best Equity Mutual Fund?

Before investing in any fund, you need to analyze your risk appetite and investment tenure. Equity funds are suitable for those investors who invest for more than 3-5 years. However, it is not ideal for short-term investors because of the fluctuation of the stock market.

How to evaluate Best Equity Mutual Funds?

  • Fund history

A good and reliable funhouse is very much essential to think of before investing in any equity mutual fund. Ideally, a fund house has a clean and long business history of at least five years. This experience will ensure that the fund has seen all the market cycle of slumps and rally.

  • Fund returns

Fund performance in terms of returns of investment is very much important parameter for the selection of funds.

Even one may select those funds, which have consistently beaten their benchmark indices.

  • Expense ratio

Expense ratio is the yearly expense incurred by the funds, which is expressed in percentage of their net assets. Expense ratio is the expense, which is charged by the mutual funds from their investors to manage money on their behalf.

  • Financial ratio

Since the risk is involved in any fund, the risk-return ratio becomes an important parameter to take into consideration. Sharpe ratio is a critical metric associated with the performance of the equity mutual fund.

Top 5 Best Equity Mutual Fund in India

Before investing in any fund, while selection, you should analyze the fund from every angle. There are various parameters, which will help you to arrive at the best equity mutual fund and as per your requirements.

We have listed out five best equity mutual funds with their returns.

  • L & T India Value Growth

Three years return- 10.44%

Five ear returns -21.65%

  • Mirae Asset India Equity Fund Regular Growth

Three years return- 13.96%

Five ear returns -18.65%

  • ABSL Frontline Equity Fund Growth

Three years return- 10.24%

Five-year returns -14.44%

  • SBI Magnum Multi-Cap Fund Regular Growth

Three years return- 11.02%

Five ear returns -18.22%

  • SBI Bluechip Fund Regular Growth

Three years return- 8.76%

Five ear returns -15.52%

  • ICICI Prudential Bluechip Fund Growth

Three years return- 10.44%

Five ear returns -21.65%

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