5 Best Equity Mutual Funds to Invest In 2024-25

Return - Equity mutual funds provide the maximum return in the mutual fund spectrum. For the fact that these funds are concentrated only in equities, they provide maximum returns. But these schemes generally carry high risks; hence, one has to have a long-term investment mindset for making money out of it.

Risk - There is a lot of risk involved with investing in equity mutual funds as the fund managers invest in highly volatile stocks. The returns of these funds relate to market fluctuations. If the market sentiments are bearish, then most of the equity funds may fail to provide satisfactory returns.

Tax benefits - Through investment in equity mutual funds, investors can avail tax benefits. In addition, tax-free equity mutual fund schemes are also available, which help reduce the revenue liability arising out of tax payments.  

Best 5 Equity Mutual Funds

ICICI Prudential Bluechip Mutual Fund 

The well-known ICICI Prudential Bluechip Mutual Fund falls into the equity fund category and focuses on large-cap equity, especially investing in blue-chip companies with stable earnings and sound market positions. This could be an appropriate fund for investors aiming for long-term capital growth without taking as much risk as in a mid-cap/small-cap fund. The portfolio normally consists of industry leaders and offers relative stability during market volatility.

Under the stewardship of the experienced team, it has always delivered handsome returns in concurrence with its benchmark. Nevertheless, it is suitable for those having a long-term investment horizon combined with a moderate risk appetite as it possesses market volatility risks like other equity investments.

HDFC Multicap Mutual Fund 

The HDFC Multicap Mutual Fund is generally a diversified equity fund with a proper and smart method of being adequately diversified, with large-cap, mid-cap, and small-cap companies making up its investment portfolio. This approach shall be very attractive to those kinds of investors who seek stability along with high growth potential, as such a strategy opens up the potential for availing growth opportunities in several market categories. The scheme will aim to achieve long-term capital appreciation by diversifying risk across various market capitalization segments. It has been managed by an efficient team and performed well over a period of time; however, being a stock fund, its valuation goes at risk because of the volatility of the markets. Hence, this fund will be ideal for those having a long-term outlook toward investing and a moderate to high risk appetite.

Kotak Multicap Fund 

The Kotak Multicap Mutual Fund falls under the equity fund category and is one such fund offering a well-diversified portfolio, which auto-readjusts in accordance with the changes in market conditions. Consequently, it invests in large, mid and small-cap companies. As a result, this fund would attract an investor seeking long-term capital growth, whereby the broad-based strategy balances risk and return at a moderate to high-risk level. The scheme aims to take advantage of the opportunities presented by different market categories, offering growth potential for mid and small-cap stocks and stability offered by large-cap stocks with an experienced team at the helm of affairs. Although providing diversification, is essential for long-term investors and quite volatile in the market. 

SBI Blue Chip Fund 

The popular large-cap equity fund SBI Bluechip Mutual Fund primarily invests in well-known large-cap companies that have established good financial track records and strong market positions. For the conservative investor who seeks long-term capital appreciation, this focus on large-cap companies may be viewed as more stable and less volatile than mid- or small-cap funds.

This scheme has a very good track record of returning consistently, mostly in line with its benchmark, and is managed by an experienced team. It can be suitable for investors with a moderate risk appetite and a long investment horizon since it is below more aggressive equities funds in terms of risk but is still subjected to market risks.

Quant Large cap and Mid cap fund 

The Quant Large and Mid Cap Fund is an equity scheme that would try to balance its portfolio for stability and growth by investing in large-cap and mid-cap equity stocks. Large-cap holdings lend an element of stability since the volatility remains generally low in these stocks issued by companies. For introducing the possibility of higher growth, mid-cap stocks come into the picture, although this comes with heightened risks.

A combination of these factors makes this fund suitable for investors with a moderate to high-risk appetite aiming at long-term capital appreciation. This dynamic management team will leverage the opportunities in these segments, but as is the case with all equity funds, it comes with market risks and best caters to the long-term investor community.

Conclusion

Equity mutual funds are schemes that are highly concentrated in investment in the equity shares. These mutual funds provide moderate returns but carry high risk. Long term investors can invest in equity mutual funds to beat the benchmark index returns. 

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