Equity Fund
Invest in a diverse range of companies with Equity Funds, where a significant portion of your investment goes into stocks as mandated by SEBI. Choose from fund types based on company size, investment style, and geography.
Active and passive management options
Diverse in sectors, sizes, and geographies
Best Equity Mutual Funds to Invest
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Aditya Birla Sun Life PSU Equity Fund Direct Growth▲ 43.13%AUM ₹5122 Cr •
Expense 0.46%
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SBI PSU Direct Growth▲ 42.27%AUM ₹3695 Cr •
Expense 0.78%
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Invesco India PSU Equity Fund Direct Plan Growth▲ 41.82%AUM ₹1363 Cr •
Expense 0.94%
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ICICI Prudential Infrastructure Fund Direct Plan Growth▲ 39.91%AUM ₹5703 Cr •
Expense 1.13%
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Motilal Oswal Midcap Direct Growth▲ 39.63%AUM ₹12628 Cr •
Expense 0.61%
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Nippon India Power & Infra Fund - Direct Plan - Growth▲ 38.52%AUM ₹6694 Cr •
Expense 1.12%
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LIC MF Infrastructure Fund Direct Plan Growth Option▲ 38.52%AUM ₹430 Cr •
Expense 1.45%
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Quant Infrastructure Fund Growth Option Direct Plan▲ 36.97%AUM ₹3882 Cr •
Expense 0.66%
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HDFC Infrastructure Fund -Direct Plan - Growth Option▲ 36.9%AUM ₹2311 Cr •
Expense 1.18%
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DSP India T.I.G.E.R. Fund - Direct Plan - Growth▲ 36.41%AUM ₹4896 Cr •
Expense 0.98%
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Kotak Infrastructure & Economic Reform Fund- Direct Plan- Growth Option▲ 36.26%AUM ₹2273 Cr •
Expense 0.65%
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Bandhan Infrastructure Fund - Direct Plan - Growth▲ 35.81%AUM ₹1592 Cr •
Expense 0.92%
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Franklin Build India Fund Direct Growth▲ 35.67%AUM ₹2738 Cr •
Expense 1.01%
- Quant Quantamental Fund Direct Growth▲ 35.06%
AUM ₹2564 Cr •
Expense 0.64%
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Tata Infrastructure Fund Direct Plan Growth▲ 35.05%AUM ₹2480 Cr •
Expense 1.19%
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Canara Robeco Infrastructure Direct Plan Growth▲ 34.97%AUM ₹788 Cr •
Expense 1.01%
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HSBC Infrastructure Fund Direct Plan Growth Option▲ 34.39%AUM ₹2779 Cr •
Expense 0.96%
- Invesco India Infrastructure Fund Direct Pan Growth Option▲ 34.19%
AUM ₹1470 Cr •
Expense 0.79%
- Quant Mid Cap Fund Growth Option Direct Plan▲ 33.65%
AUM ₹8747 Cr •
Expense 0.62%
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JM Flexicap Fund (Direct) Growth Option▲ 33.16%AUM ₹2472 Cr •
Expense 0.43%
What are Equity Funds?
Equity Funds pool money to invest mainly in company stocks. They put at least 65% of their money in shares. These funds can be managed by experts (active) or follow market indexes like the Sensex (passive). Equity funds come in many types, based on company size, how they invest, and where the companies are located. You can choose from funds that invest in Indian companies, global markets, or specific industries like technology or healthcare.
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Benefits of Investing in Equity Funds
Adding Equity Funds to your investment mix can offer numerous benefits. Let’s see how!
Higher Earning Potential
Equity Funds often outperform other investments like bonds or fixed deposits over time. Investing in companies' stocks gives you a share in their potential profits and growth.
Risk Reduction
These funds diversify your investment across various companies and industries, minimising the impact if one investment dips. It's a safer approach to aim for solid returns.
Managed by Experts
Fund managers with experience and expertise handle the investment decisions in Equity Funds. They work to grow your investment, leveraging their market knowledge.
Liquidity Advantage
Equity Funds provide the flexibility to sell your investment relatively quickly if you need to, offering better liquidity compared to assets like real estate.
Variety of Options
With Equity Funds, you can choose from a range of sectors, market capitalisations, or regions, aligning your investment with your financial goals and risk tolerance.
Income from Dividends
Beyond the potential for investment growth, some Equity Funds also pay dividends, offering you a regular income stream from your investments.
Who should invest in Equity Funds?
Equity Funds are ideal for investors looking for higher returns than what debt funds offer, understanding that there's a bit more risk involved.
Beginners in Investing
If you're new to investing, Equity Funds are a good start. They let you invest in the stock market without needing to pick individual stocks or have a lot of knowledge. The fund managers make the investment decisions for you.
Small Investors
They're great for small individual investors, too, because these funds allow for diversification, spreading risk across various stocks with just a small initial investment.
Individuals Seeking Less Risk
For investors looking to reduce risk through diversification, Equity Funds offer a practical solution. By pooling funds from many investors, these funds can invest in a wider range of stocks than most individuals could afford on their own.
Limitations of Investing in Equity Funds
Even with their advantages, Equity Funds come with certain limitations to consider:
Market Risk
Equity Funds are tied to the stock market, so if the market goes down, your fund's value likely will too. This can mean your investment might lose value during market dips.
Performance Variability
Not all Equity Funds perform the same. Some may do well while others might not, depending on the fund's specific investments and the fund manager's decisions.
No Guaranteed Returns
Unlike fixed deposits or certain bonds, Equity Funds don't offer guaranteed returns. Your investment's success is dependent on market conditions and the specific stocks the fund holds.
Frequently Asked Questions
Equity funds pool money from investors to primarily invest in stocks, aiming for capital appreciation.
These funds invest in a diversified portfolio of stocks, allowing investors to benefit from the overall performance of the stock market.
Equity funds come in various types, including large-cap, mid-cap, small-cap, sector-specific, and thematic funds, catering to different investment preferences.
Advantages include diversification, professional management, potential for capital appreciation, and direct exposure to stock market trends.
Equity funds are suitable for long-term investors comfortable with market fluctuations and seeking growth and capital appreciation.
Risks include market volatility, no guaranteed returns, and the possibility of underperformance due to poor fund management or adverse market conditions.
Consider factors like investment goals, risk tolerance, fund type, expense ratios, historical performance, and prevailing market conditions when selecting an equity fund for your portfolio.
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