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Mutual FundsEquity FundsEquity Mutual Funds
3 Year Average Returns
14.60%
Funds on Dhan
592
Equity Funds invest in the stock market. An experienced fund manager handles the buying and selling of stocks for the fund, while ensuring optimal returns and risk balance for investors. While these are the best Equity Mutual Funds to invest in, you must know these 3 things before you start investing.
- Goal: Equity Funds generally invest in more than 40-50 stocks and as a result offer diversification.
- Investment Horizon: Investors need to have a long-term approach (5+ years) for investing Equity Funds to create wealth.
- Risk: Equity Funds can be volatile in the short run due to higher exposure to the equity market. This means investors need to be patient.
Best Equity Funds to Invest in 2026
Note: 3Y & 5Y returns are annualised. Rest everything is absolute.
Scheme | AUM (in Cr.) | Fund Age | 1W | 1M | 3M | 6M | 1Y | 3Y  | 5Y |
|---|---|---|---|---|---|---|---|---|---|
Compare | ₹ 963 | 4 Yrs | 0.26% | -26.65% | -19.01% | -23.23% | 64.60% | 47.54% | 0.00% |
Compare | ₹ 11,131 | 3 Yrs | 0.18% | 1.68% | -2.25% | 6.48% | 18.96% | 34.34% | 0.00% |
Compare | ₹ 3,666 | 3 Yrs | 4.16% | 8.62% | 4.68% | 18.07% | 32.21% | 31.10% | 0.00% |
Compare | ₹ 6,067 | 13 Yrs | 4.13% | 9.05% | 2.87% | 17.30% | 26.19% | 25.28% | 20.61% |
Compare | ₹ 2,004 | 3 Yrs | 3.87% | 7.88% | -0.56% | 15.05% | 10.39% | 25.17% | 0.00% |
Compare | ₹ 3,562 | 8 Yrs | 4.86% | 9.91% | 6.60% | 16.92% | 28.56% | 24.50% | 18.10% |
Compare | ₹ 1,433 | 13 Yrs | 3.82% | 7.93% | 2.48% | 15.58% | 22.62% | 23.97% | 17.67% |
Compare | ₹ 15,831 | 13 Yrs | 4.50% | 6.98% | 0.46% | 8.69% | 10.51% | 23.67% | 18.62% |
Compare | ₹ 3,817 | 4 Yrs | 6.72% | 11.35% | 0.29% | 14.96% | 12.60% | 23.50% | 0.00% |
Compare | ₹ 12,439 | 13 Yrs | 5.65% | 9.72% | 3.00% | 14.00% | 13.85% | 23.35% | 17.64% |
Compare | ₹ 1,100 | 13 Yrs | 2.98% | 4.52% | -0.94% | 4.47% | 10.82% | 22.82% | 20.03% |
Compare | ₹ 35,204 | 6 Yrs | 3.22% | 1.67% | -0.64% | 6.23% | 9.25% | 22.78% | 19.14% |
Compare | ₹ 6,486 | 6 Yrs | 4.47% | 10.86% | 5.95% | 18.42% | 14.56% | 22.63% | 15.34% |
Compare | ₹ 7,104 | 8 Yrs | 3.39% | 8.32% | 0.87% | 7.68% | 12.13% | 22.42% | 17.95% |
Compare | ₹ 1,002 | 13 Yrs | 3.07% | 5.09% | 1.49% | 8.85% | 18.23% | 22.14% | 20.14% |
Compare | ₹ 3,727 | 7 Yrs | 2.48% | 6.94% | 3.31% | 18.51% | 19.64% | 21.95% | 17.40% |
Compare | ₹ 16,772 | 13 Yrs | 2.19% | 2.44% | -1.56% | 7.03% | 16.09% | 21.85% | 17.76% |
Compare | ₹ 97 | 7 Yrs | 3.50% | 7.46% | 1.74% | 12.08% | 18.12% | 21.84% | 14.51% |
Compare | ₹ 3,597 | 6 Yrs | 2.00% | 1.20% | -0.63% | 11.51% | 18.13% | 21.84% | 17.08% |
Compare | ₹ 417 | 3 Yrs | 3.91% | 6.11% | 3.45% | 14.05% | 22.58% | 21.65% | 0.00% |
Compare | ₹ 16,320 | 8 Yrs | 4.73% | 7.10% | 2.59% | 14.91% | 19.07% | 21.55% | 19.36% |
Compare | ₹ 823 | 3 Yrs | 5.15% | 4.14% | 0.42% | 6.45% | 9.83% | 21.39% | 0.00% |
Compare | ₹ 2,975 | 4 Yrs | 3.46% | 4.98% | 1.28% | 10.95% | 16.43% | 21.35% | 0.00% |
Compare | ₹ 19,716 | 7 Yrs | 2.34% | 3.79% | 1.33% | 6.10% | 8.86% | 21.25% | 18.11% |
Compare | ₹ 340 | 13 Yrs | -1.52% | -5.62% | -3.96% | -2.41% | 11.76% | 21.21% | 11.03% |
Compare | ₹ 6,191 | 13 Yrs | 3.90% | 7.41% | -0.04% | -1.58% | 2.51% | 21.05% | 22.05% |
Compare | ₹ 1,332 | 11 Yrs | 1.85% | 3.01% | -2.18% | 9.49% | 17.77% | 20.97% | 15.06% |
Compare | ₹ 7,786 | 4 Yrs | 2.78% | 4.02% | -1.25% | 7.43% | 9.28% | 20.96% | 0.00% |
Compare | ₹ 913 | 13 Yrs | 0.04% | -5.38% | -5.62% | -3.31% | 21.00% | 20.94% | 7.15% |
Compare | ₹ 1,088 | 7 Yrs | 3.13% | 7.34% | 1.19% | 12.16% | 21.09% | 20.92% | 16.16% |
Compare | ₹ 4,023 | 13 Yrs | 1.36% | 5.32% | 4.10% | 14.92% | 24.54% | 20.75% | 13.54% |
Compare | ₹ 267 | 5 Yrs | 3.88% | 8.40% | 2.75% | 12.77% | 17.43% | 20.71% | 15.59% |
Compare | ₹ 2,457 | 13 Yrs | 2.35% | 7.22% | 0.76% | -0.39% | 12.80% | 20.46% | 16.13% |
Compare | ₹ 7,695 | 13 Yrs | 2.43% | 4.37% | -3.47% | -0.42% | 8.05% | 20.37% | 15.48% |
Compare | ₹ 340 | - | -1.28% | -7.25% | -7.31% | -0.87% | 19.75% | 20.34% | 9.62% |
Compare | ₹ 340 | 12 Yrs | -1.28% | -7.25% | -7.31% | -0.87% | 19.75% | 20.34% | 9.62% |
Compare | ₹ 6,019 | 13 Yrs | 2.20% | 3.31% | -2.95% | 1.33% | 12.74% | 20.30% | 19.79% |
Compare | ₹ 1,359 | 6 Yrs | 4.21% | 4.59% | 0.83% | 11.42% | 13.34% | 20.16% | 13.65% |
Compare | ₹ 1,621 | 3 Yrs | 4.36% | 6.95% | 3.68% | 15.26% | 15.93% | 20.10% | 0.00% |
Compare | ₹ 1,289 | 3 Yrs | 3.25% | 6.32% | 2.02% | 15.33% | 13.58% | 20.02% | 0.00% |
Compare | ₹ 5,705 | 6 Yrs | 4.51% | 7.36% | 1.12% | 0.75% | 6.71% | 19.97% | 22.35% |
Compare | ₹ 12,234 | 4 Yrs | 3.66% | 6.43% | 3.36% | 13.38% | 11.97% | 19.95% | 0.00% |
Compare | ₹ 1,704 | 4 Yrs | 3.74% | 7.37% | 0.17% | -0.04% | 4.16% | 19.91% | 0.00% |
Compare | ₹ 696 | 4 Yrs | 4.69% | 8.51% | -2.89% | 9.23% | 7.30% | 19.81% | 0.00% |
Compare | ₹ 713 | 7 Yrs | 4.29% | 5.64% | 0.57% | 6.87% | 7.27% | 19.76% | 14.75% |
Compare | ₹ 4,189 | 7 Yrs | 3.81% | 0.52% | -1.43% | 6.59% | 10.42% | 19.65% | 14.05% |
Compare | ₹ 18,725 | 13 Yrs | 3.15% | 4.19% | -2.26% | 2.01% | 4.43% | 19.61% | 17.00% |
Compare | ₹ 4,001 | 13 Yrs | 5.57% | 10.92% | -1.04% | 9.76% | 4.96% | 19.51% | 18.38% |
Compare | ₹ 4,672 | 11 Yrs | 1.69% | 1.27% | -1.34% | 1.88% | 7.61% | 19.51% | 16.23% |
Compare | ₹ 3,685 | 7 Yrs | 2.38% | -1.44% | 0.48% | 15.30% | 25.34% | 19.28% | 18.54% |
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Disclaimer: Mutual fund investments carry market risks; read all scheme-related documents carefully. Past performance does not guarantee future returns.
About Equity Funds
Equity Mutual Funds are mutual fund schemes that invest majorly in stocks of different companies. They invest in a wide range of industries and sectors to provide you with diversification benefits. You can earn returns from these funds in two ways: capital appreciation and dividends. The following are the main features of Equity Funds:
- Equity Mutual Funds focus a large percentage of their fund corpus on stock investments, with the main objective of offering capital growth.
- When selecting stocks to buy, fund managers conduct extensive research and analysis to identify businesses with the potential for substantial growth.
- Equity Funds can outperform inflation and generate wealth over time. Historical data show that equity has consistently been one of the best-performing asset classes.
- By spreading the investment portfolio among an extensive variety of stocks, equity funds mitigate risk and offer higher returns than traditional investments.
Equity Mutual Funds are considered one of the best options for investing for long-term wealth accumulation. There are many advantages of investing in Equity Funds as mentioned below:
- Equity Funds have historically outperformed other asset classes such as debt.
- By investing in a range of stocks, these funds help you to diversify your portfolio. This can lower your risk and shield your money from unpredictable market movements.
- When compared to fixed-income investment options, Equity Mutual Funds provide substantial capital appreciation. This ability not only makes this fund category a long-term investment option but also a shield against inflation.
- Fund managers research the market, evaluate the performance of companies, and then select the best-performing stocks to purchase and maximize returns.
- Equity-linked savings scheme (ELSS) is part of equity funds, which is specially designed for saving taxes. Investing in these funds allows you to reduce your taxable income by up to Rs. 1.5 lakh.
Here are some of the factors you need to consider before investing in these funds:
- Equity Funds tend to be more volatile than other types of assets like bonds or fixed deposits. Equity funds may be a good fit if you have a high-risk tolerance and a long time horizon.
- Professional fund managers manage equity funds and make investment choices on behalf of investors. This makes it attractive for investors who do not have the time and knowledge to invest in individual stocks.
- Investments can be using the lump sum option or gradually over time using the Systematic Investment Plan (SIP) mode. This makes it affordable for investors with low ticket sizes, too.
- Equity investments are typically better suited for long-term goals. If you require funds in the short term, the volatility of equity markets may not be appropriate, as you may not have enough time to recover from market downturns if any.
Equity Funds can be an appealing option for a wide range of investors:
- Equity Funds are ideal for those who want to invest in stocks but lack expertise or time. The fund manager handles stock selections and portfolio rebalancing, easing the pressure on investors to choose the right stocks.
- If you are someone who doesn't want to invest high capital into stock markets, then Equity Funds are a great way to start via SIP investments. Using equity funds, you can start investing from as low as Rs. 500.
- If your goals are for the longer term like saving for retirement or child education, Equity Funds can be considered. To get the maximum leverage from equity funds, you need to stay committed to the investments for at least 5-10 years. It will provide your funds the much-needed time to withstand ups and downs in the market.
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FAQs
Equity funds pool money from various investors to invest primarily in stocks of companies. In India, a typical equity fund invests at least 65% of its assets in equities, aiming for capital growth over the medium to long term. Managers decide which stocks to buy or sell based on research and market trends, striving to maximize returns.
Equity funds in India are typically invested in the stock market, purchasing shares of publicly listed companies. They may focus on different sectors, company sizes (like large-cap, mid-cap, small-cap), or themes (like technology or healthcare), depending on the fund's objective. This diversification helps manage risk while seeking growth.
Equity funds aim to generate profits by investing in the stock market, but returns are not guaranteed. Their performance depends on market conditions and the skill of the fund manager. While they have the potential for high returns compared to other investment types, they also come with higher risk, especially in the short term.
No, equity funds are not tax-free in India. However, they do enjoy certain tax advantages. Long-term capital gains (on investments held for more than a year) above ₹1 lakh are taxed at 10% without indexation benefit. For short-term gains (investments held for less than a year), the tax rate is 15%.
Choosing the best equity fund involves assessing your risk tolerance, investment goals, and time horizon. Look for funds with consistent performance over different market cycles, reputable fund managers, and reasonable fees. Consider the fund's focus area, such as specific sectors or market caps, to align with your investment strategy.
Choosing the best equity fund involves assessing your risk tolerance, investment goals, and time horizon. Look for funds with consistent performance over different market cycles, reputable fund managers, and reasonable fees. Consider the fund's focus area, such as specific sectors or market caps, to align with your investment strategy.
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