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Top-Performing Equity Mutual Funds for Smart Investors

Best equity mutual funds for portfolio growth: Explore top small-cap, mid-cap, and large-cap funds

Rs. 500 SIP = Rs. 10L+ in 15 yrs. Start your journey today

Article 8

Equity Mutual funds are amongst the most favoured investment options for individuals hoping to gain substantial returns in the long term. These are mostly equity mutual funds that invest in shares of companies across sectors with the intention of growing capital. In this article, we will tell you about equity mutual funds, top-rated equity mutual funds, and why these best-performing mutual funds deserve a place in the portfolio of long-term investors.

What are equity mutual funds?

Equity mutual funds are schemes in which money is pooled by several investors to invest in a diversified portfolio of stocks. Professional fund managers manage these funds with the goal of higher returns through stock picking. For anyone with a long-term horizon who is looking for capital growth, equity mutual funds are the go-to investment. How these funds do depends on market factors, the economy, and the companies they invest in.

Key takeaways

  • Equity mutual funds are a popular choice for long-term capital appreciation.
  • In the best-rated funds from their category, SBI small cap fund, Axis bluechip fund, and Mirae asset emerging bluechip fund are right at the top.
  • The diversification and professional management in equity mutual funds reduce this risk.
  • They may cater to different levels of risk profiles ranging from conservative to aggressive investors.
  • SIPs make it convenient to invest periodically toward your financial goals.

Best-rated equity mutual funds

SBI small cap fund

SBI small cap fund is the best small cap fund and it works in the equity type of mutual fund asset class. Given the growth nature of small-cap companies, this fund is most suitable for aggressive investors with a high-risk appetite. The SBI small cap fund has over the years shown a good track record of delivering decent returns, and investors have loved this scheme for long-term wealth creation.

Axis bluechip fund

Axis bluechip fund is a large-cap fund centered around investing in blue-chip companies which are large, established firms with an illustrious history of delivering consistent returns. They are best suited for conservative investors looking for stable growth with minimal risk. The product has exhibited continuously strong performance by investing in quality companies with good financials.

Mirae asset emerging bluechip fund

Mirae asset emerging bluechip fund is one of the best mid-cap funds, which invests in a combination of large as well as mid-cap stocks. Since it has some large-cap investments in its books too, this one provides the best of both worlds — stability as well as growth. It has been producing reliable returns and tends to be a popular choice among those looking for both safety and growth.

Also read:

What Is Systematic Withdrawal Plan (SWP)

Why invest in equity mutual funds?

Reasons such as the following make equity mutual funds one of the most preferred schemes in which investors can invest:

  • Diversification: Buying equity from mutual funds spreads the risk because Mutual Funds invest in many different sectors, and companies are diversified.
  • Professional management: Managed by experienced fund managers, these funds invest in different organizations based on market trends and the performance of a company.
  • Long-term wealth creation: SIP in equity mutual funds is an avenue that lets you compound your money over the years and build up a good corpus for long-term goals like retirement or maybe purchasing a house.

Also Read:

What Is Compound Annual Growth Rate (CAGR)

Build your wealth with SIP

Conclusion

One of the best ways to increase your wealth over a period of time is to invest in top-rated equity mutual funds be it small-cap, mid-cap, or large-cap funds - the idea is to keep investing and then let the power of compounding work on these investments for a period. Get in on a range of mutual funds for you to invest and also have the choice to start investing in some of the best-performing equity funds that are available on Bajaj Finance mutual fund platform. You can choose from a wide variety and categories of mutual fund schemes and resources that make investing in mutual funds easy and hassle-free.

Types of Mutual Funds

# Mutual Funds image

# Mutual Funds

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New Fund Offer

Debt Mutual Funds image

Debt Mutual Funds

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Equity Mutual Funds

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Hybrid Mutual Funds

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Multi-cap Mutual Funds

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Thematic Mutual Funds

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Large-cap Mutual Funds

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Mid-cap Mutual Funds

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Small-cap Mutual Funds

Liquid Mutual Funds image

Liquid Mutual Funds

Aggressive Hybrid Mutual Funds image

Aggressive Hybrid Mutual Funds

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Frequently asked questions

What is the difference between large-cap and small-cap equity mutual funds?

The large-cap funds invest in companies that are established and have a good track record of returns, whereas the small caps are usually young (small) companies with high growth potential, typically more risky.

Can I invest in equity mutual funds with a low-risk appetite?

If you have a low-risk appetite, certainly large-cap-equity funds like Axis bluechip fund are safer. They look for stable companies with long proven track record.

How do equity mutual funds generate returns?

These are mutual funds that can grow returns by investing in stocks that increase long-term value. When stocks in the portfolio go up the fund becomes pricier.

Is it better to invest in equity mutual funds through SIP?

Yes, SIP allows you to invest small amounts at frequent intervals; this becomes rupee cost averaging for investment and lessens the effects of market volatility.

Are equity mutual funds suitable for short-term goals?

The investments in equity mutual funds are meant for long-term goals. Debt funds or hybrid funds are preferable for short-term goals as well which come with lower risk.

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Disclaimer

Bajaj Finance Limited (“BFL”) is an NBFC offering loans, deposits and third-party wealth management products.

The information contained in this article is for general informational purposes only and does not constitute any financial advice. The content herein has been prepared by BFL on the basis of publicly available information, internal sources and other third-party sources believed to be reliable. However, BFL cannot guarantee the accuracy of such information, assure its completeness, or warrant such information will not be changed.

This information should not be relied upon as the sole basis for any investment decisions. Hence, User is advised to independently exercise diligence by verifying complete information, including by consulting independent financial experts, if any, and the investor shall be the sole owner of the decision taken, if any, about suitability of the same.

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Bajaj Finance Limited ("BFL") is registered with the Association of Mutual Funds in India ("AMFI") as a distributor of third party Mutual Funds (shortly referred as 'Mutual Funds) with ARN No. 90319

BFL does NOT:

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(ii) carry customized/personalized suitability assessment.

(iii) carry independent research or analysis, including on any Mutual Fund schemes or other investments; and provide any guarantee of return on investment.

In addition to displaying the Mutual fund products of Asset Management Companies, some general information is sourced from third parties, is also displayed on As-is basis, which should NOT be construed as any solicitation or attempt to effect transactions in securities or the rendering any investment advice. Mutual Funds are subject to market risks, including loss of principal amount and Investor should read all Scheme/Offer related documents carefully. The NAV of units issued under the Schemes of mutual funds can go up or down depending on the factors and forces affecting capital markets and may also be affected by changes in the general level of interest rates. The NAV of the units issued under the scheme may be affected, inter-alia by changes in the interest rates, trading volumes, settlement periods, transfer procedures and performance of individual securities forming part of the Mutual Fund. The NAV will inter-alia be exposed to Price/Interest Rate Risk and Credit Risk. Past performance of any scheme of the Mutual fund do not indicate the future performance of the Schemes of the Mutual Fund. BFL shall not be responsible or liable for any loss or shortfall incurred by the investors. There may be other/better alternatives to the investment avenues displayed by BFL. Hence, the final investment decision shall at all times exclusively remain with the investor alone and BFL shall not be liable or responsible for any consequences thereof.

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Disclosure
: Bajaj Finance Limited (BFL) is a distributor of Mutual Funds with ARN - 90319 and distributes mutual funds of Bajaj Finance Asset Management Limited (BFSAMC). BFL receives commission towards distribution of mutual fund products. BFSAMC is a group company of BFL, carrying business on arm’s length basis without any conflict of interest and in accordance with the prevailing law / regulation.

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