- Expense ratios
- Standard deviation
- Market valuations and multiples
- Portfolio holdings and diversification
- Cash ratio of a fund
- Size of the fund and many more...
List of Best Performing Top 10 Equity Mutual Funds in India for 2022*This is simply the list of top 10 equity mutual funds. This is not investment advice.
|Fund Name||Rank||RankMF Rating||Nav||1 Year||3 Years||5 Years||Since Inception|
|Axis Esg Equity Fund Regular Growth||1||5||₹ 16.96||53.62%||0.00%||0.00%||36.62%|
|Axis Focused 25 Fund Regular Growth||3||5||₹ 48.16||59.73%||24.64%||18.89%||18.37%|
|Motilal Oswal Focused 25 Fund - Regular Growth||4||5||₹ 34.38||41.32%||21.36%||14.36%||15.74%|
|Motilal Oswal S&p 500 Index Fund Regular Growth||5||5||₹ 15.27||33.40%||0.00%||0.00%||32.98%|
|Dsp Focus Fund - Growth||6||5||₹ 34.39||43.27%||19.25%||11.62%||11.47%|
|Icici Prudential Us Bluechip Equity Fund - Growth||7||5||₹ 46.30||33.58%||19.94%||19.82%||17.91%|
|Axis Esg Equity Fund Regular Idcw Payout||8||5||₹ 16.96||53.62%||0.00%||0.00%||36.62%|
|Axis Focused 25 Fund Regular Idcw Reinvestment||9||5||₹ 24.97||59.75%||23.70%||18.36%||18.09%|
|Sbi Magnum Global Fund - Growth||10||5||₹ 280.19||49.97%||21.28%||13.51%||14.98%|
|Dsp Quant Fund - Reg - Growth||11||5||₹ 17.27||50.77%||0.00%||0.00%||25.93%|
What are Equity Mutual Funds?Equity mutual funds are the type of mutual funds that invests in equities or stocks of companies listed on the stock exchange. The Securities and Exchange Board of India (SEBI) defines equity mutual funds as, ‘funds that invest 65% of the corpus in equity shares of listed companies’. Remaining 35% corpus is usually invested in debt instruments to minimise risk. equity mutual funds generate superior returns in the long term. Since equity funds predominantly invest in stocks, they are riskier than debt and hybrid funds.
Who should invest in Equity Mutual Funds?Equity mutual funds are volatile and carry higher risk compared to other investment options. Hence, before investing in top 10 equity mutual funds you should consider the following:
- Equity mutual funds are suitable for investors with an investment horizon of at least five years or more.
- High-risk investors with a long term investment horizon should invest in equity mutual funds.
- Mutual fund beginners can invest in large cap mutual funds as these are relatively safer. Best large cap equity mutual funds invest in equity shares of well-established companies with a track record of offering stable returns in the long run.
Things to Consider Before Investing in Equity Mutual FundsHere are some of the most important things to consider before investing in top 10 Equity Mutual Funds.
1. Investment Objective:Before investing in Best top 10 equity mutual funds, you should do goal based financial planning. This will help you invest in line with your financial goals.When you invest as per your financial goals, you stay invested for the long term. Also, you generate higher returns with the power of compounding.
2. Risk ProfileThere is a direct relationship between risk and return in mutual funds. High risk leads to higher returns. You should only invest in best equity mutual funds if it suits your risk profile.For example: if you are a low-risk investor then you should avoid small cap funds. Similarly, if you are a high-risk investor then mid cap funds and small cap funds would suit you better.
3. Investment Horizon:Investment horizon is the time for which you hold your assets to get maximum returns. You should always invest in line with your investment horizon.
- Short-term goal = Short-term investment horizon
- Long-term goal = Long-term investment horizon
4. Fund Objectives:Every mutual fund scheme has a fund objective based on which stocks are selected. Knowing the fund’s objective will help you make better investment decisions. Some mutual funds have defined goal such as growth fund or value fund. So, choose the one which is appropriate to you as per your goal.
5. Fund Types:Equity funds are further divided into:
- Large cap funds
- Midcap funds
- Small cap funds.
What are the advantages of investing in Equity Mutual Funds?
- Lowest lock-in period: Equity mutual funds carry lowest lock-in period among other investment options like Fixed Deposit, PPF or NSC etc. Equity funds are highly liquid. Most equity funds have only a 12-month lock-in period.
- Expert managed: Best Equity Funds are managed and operated by expert fund managers. These expert fund managers make investment decisions on behalf of the unitholders. The aim of the fund managers is to generate superior returns.
- Superior returns: Best Equity Funds provide higher returns than other investment options like fixed deposit, savings account, NSC, PPF, and others.
- Affordable: The best thing about Best Equity Funds is that investors can start an investment with as little as Rs 500.
Which is the Best way to Invest in Equity Mutual Funds?You can invest in Best Equity Mutual Funds in two ways:
- One-time lump sum investment: Lump sum investing is when the entire capital is invested at one go. One-time lump sum investment is ideal for seasoned investors who can time the market and invest at dips.
- Systematic investment plan (SIP): In a SIP, a fixed amount is invested every month on a fixed date. SIPs are the best way to invest in the equity mutual funds as they help in cost-averaging. You also earn higher returns due to the power of compounding. Investors do not need to time the market when investing via SIPs. SIPs help in creating investment discipline.