Best Equity Mutual Funds to Invest in 2018
There are many different equity mutual fund schemes available in India currently. It can be confusing and difficult for an investor to choose a scheme from these. In this article we will list down 10 best equity mutual funds you can invest in. We have included funds from different categories so that investors of varying risk appetite can be benefited from this list.
Equity funds invest predominantly in the stock market and they are volatile by nature. An investment in an equity fund should be done with at least 5 year investment horizon.
There are various categories of equity funds available:
Large Cap: Invests mostly in blue-chip companies, least volatile pure equity fund category.
Mid Cap: Invests in companies which are mid-sized. These are volatile funds and tend to outperform the markets in a bull run but they fall more than large cap funds when there is a bear market.
Small Cap: These funds invest in the companies which are in the early stage of business and have high growth potential. These are highly risky funds but in long term tend to give superior returns than any other category.
Multi Cap: These are not restricted to any mandate and invest in all types of companies depending on the market outlook.
Best Equity Mutual Funds:
Birla Sun Life Frontline Equity has a track record of more than 15 years and has outperformed the category every time in last 10 years. It has 5 year returns of 18.28% which is around 3.5% higher than that of the category average.
The fund took time to start performing and was an underperformer till 2011. But now it has outperformed the category 5 times in last 5 years. It has an impressive 5 year CAGR of 18.88% in comparison to the 13.14% CAGR of the benchmark.
This is an almost 8 year old fund and has beaten the benchmark in 6 out of past 7 years. It has been underperforming in last 1 year; however it has an impeccable long term record with 5 year returns of 23.06% which are around 9% higher than the benchmark and more than 4.5% higher than the category average.
As the name indicates, this fund was launched in 1996. It has an excellent track record and has beaten the benchmark returns 6 times in last 10 years. Its 5 year returns are 22.90% which is around 8% higher than that of the benchmark returns.
This fund has a track record of 8 years and has beaten the benchmark (S&P BSE 200) and category average every time in last 5 years. Its 5 year CAGR is 26.03% which is 12% higher than that of the benchmark. The fund invests in undervalued stocks but makes sure that the fundamentals are strong.
This is a relatively new fund and was launched in Apr 2014. It has outperformed the benchmark & category by a huge margin in last two year. It follows the stock selection philosophy of Quality, Growth, Longevity and Price. Its 3 year returns are 22.32% which is higher than the benchmark & category by 11% and 9% respectively. The fund is true to the multi cap approach and does not have any sector or cap constraints.
The fund has outperformed the benchmark every time in the last 8 years. It has given impressive 5 year returns of 29.37% compared to only 13.99% of the benchmark (S&P BSE 200). The fund stays true to its name and follows the value investing approach and looks to invest in companies that are trading below their intrinsic value in the market.
This fund has a track record of 24 years as it was launched in Dec 1993. It has outperformed the benchmark (Nifty 500) 8 times in last 10 years. Its 5 year return of 25.89% is 11.20% more than that of the benchmark and 3% more than that of the category average return.
This is a seven year old fund and it has beaten the benchmark (S&P BSE Small Cap) in all those 7 years. The 5 year & 7 year CAGR of the fund has been a very impressive 31.01% & 22.06% respectively while the benchmark has given only 18.92% & 6.68% in the same period. The fund looks to invest in companies which can achieve scalability and have a good management to achieve that.
The fund is almost 12 years old and has beaten the benchmark 7 times in last 10 years. Its 5 year returns have been 30.02% in comparison to 18.75% returns of the benchmark. The fund invests in companies which can achieve high growth in earnings and provide good return on capital.
Now let us see the Returns and Risk Measures of these best equity mutual funds.
Equity funds are volatile and are suitable for long term investments. Invest with a long time horizon and take advantage of the high returns from equity investments.
Note: The article has used the data of regular variants of the funds, however, if you choose to invest in these best equity mutual funds, go for the direct plans where you will be able to save 1%-1.5% commission thereby achieving higher returns.
Start Investing in the above mentioned best equity mutual funds (Direct Plan) on WealthTrust App.
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