Did you know Mutual funds that invest in companies from various industries can mitigate risk by diversifying their portfolio? There are fund manager schemes known as equity funds, which invest their assets in the stock of various firms, depending on their investing aim. Because of their potential for long-term wealth building, these funds are an excellent investment alternative.

Equity funds are a good option for long-term investors who wish to get a foothold in the stock market. Check out the top equity mutual funds.

Best Performing Equity Mutual Funds in India

You can’t rely entirely on the reputation of a fund manager you’ve picked when picking an equity fund. Several variables must be considered when making an investment decision:

• Your objectives and risk tolerance.
• Market trends.
• The development of the firms whose shares you intend to purchase.
• The degree of risk involved.
• The profits created by the fund.

In addition to the manager’s track record, fees, and the fund’s size, you may wish to consider these factors.

Once you grasp your objectives and key performance indicators, it’s time to shift your attention to the equity fund’s Net Asset Values (NAVs) or returns. The NAV, or net asset value, is the price of the stock of a mutual fund that is made public daily.

Periodic return figures are a more robust indicator of a fund’s long-term growth potential. The stock market, financial, and newspapers may provide these values, or investment managers can provide them.

Axis Bluechip Fund

Large Cap mutual fund Axis Mutual Fund’s Axis Bluechip Fund Direct Plan-Growth. Founded on January 1, 2013, this fund has been around for over a decade. At 32,322 Crores in AUM as of June 30 2022, Axis Bluechip Fund Direct Plan-Growth is a medium-sized fund in its category. Compared to other large-cap funds, this one has an expected cost of 0.52 per cent.

The 1-year return for Axis Bluechip best equity mutual funds Growth is 0.32 per cent. It has averaged 14.95 per cent yearly returns since its inception. Every six years, the fund has more than quadrupled its money.

Most funds in this category, including Axis Bluechip Fund Direct Plan-Growth, are capable of regularly generating returns. It has done better than average at limiting losses in a declining market.

Most of the fund’s investments are in the financial, technological, services, energy, and healthcare sectors. Compared to certain other funds in the category, it has less exposure to the financial and technology industries.

ICICI Prudential Bluechip Fund

Growth-oriented large-cap equities mutual fund ICICI Prudential Focused Bluechip Equity Fund. The fund’s primary goal is to provide its unitholders with long-term capital appreciation and income distribution.

Since its launch in May 2008, the product has consistently ranked as one of the best in its category, generating above-average returns. CRISIL Ratings has placed the fund in third place as of June 30, 2019, due to its outstanding performance.

Also Read: Understand How Mutual Funds Actually Work?

With its focus on large-cap firms with excellent fundamentals, the fund provides investors with both growth and stability in tumultuous market situations. Invested primarily in large-cap equities stocks and associated instruments, the fund is an open-ended equity mutual fund. Systematic Transfer Plans (STP), Flex STP, or Value STP are available to investors.

To qualify for daily STP, you must pay at least Rs. 250 and in increments of Rs. 50. For STP with a weekly, monthly, or quarterly frequency, the minimum number is Rs. 1000, and payments are made in multiples of Rs. 1.

Sophisticated Withdrawal Plan (SWP): The fund has a minimum withdrawal value of Rs. 500 and is offered to investors who want to withdraw a fixed amount each month in multiples of Rs 1.

Kotak Bluechip fund

Refineries, software services, manufacturing, engineering, and finance are just a few of the many industries in which the fund holds stakes. Double-digit annualized gains from the fund have rewarded its investors immensely.

The income distribution cum withdrawal option gives monthly dividend payments to unit holders, but the direct and regular variations do not. Intermediaries and third parties like banks and other financial service providers are used to distribute Kotak Bluechip Mutual Fund products. Kotak Bluechip Growth Direct can only be acquired via the fund house, whereas Kotak Bluechip Regular Growth Fund may be purchased at higher costs.

The primary goal of Kotak Mutual Fund is to build wealth for its investors. They and their skilled stock pickers ensure that the fund is stocked with the proper mix of stocks. The company also uses its in-house researchers, who are in charge of spotting the stock market’s big winners and losers. The Kotak AMC’s team of experts guarantees that the primary goal of its investors, capital appreciation, is achieved. The Kotak AMC team’s investing checklist is as follows.

Before investing in a company, a fund house checks the company’s financial strength, such as a solid balance sheet and income competence like a decent earnings report and cash flow.

Researchers and the fund manager stress the importance of good management. In addition to this, he has a strong record of success and a solid reputation in the sector.

In the next step, the researchers examine the company’s business model, market competitiveness, and long-term plan for gaining consumers and keeping the firm going.

Downturns in the economy mustn’t adversely impact businesses. Considering the company’s liquidity and worth in the market is also vital.

Features of Equity Mutual Funds

Some of the features of equity mutual funds are described here.

Risk Return Ratio

Investing in the best equity funds may seem appealing because of the influence of well-known athletes. Before putting all your money on the line, evaluating the risk-to-reward ratio is usually a good idea. Using these ratios, you may evaluate mutual fund plans more effectively. Investing with mutual funds is often preceded by examining a fund’s historical performance. Investing is fraught with danger, but most people don’t consider the risk they’re placing on themselves.

Investors need to understand the many aspects of a mutual fund to make more informed judgments about the level of risk they are willing to take in light of their long-term financial objectives and investment horizons. Is there a way to quantify the risk of mutual funds? Mutual fund returns and risks may be quantified using a variety of ratios.

Waiting time

When a fund unit is sold, investors get a capital gain. Investors must pay taxes on their capital gains. The holding period describes when a person’s investments are taxed.

Also Read: Types of Mutual Funds in India

Short-term equity assets are those that have been held for less than a year, and as a result, capital gains on these investments are taxed at a rate of 15%. Capital gains on long-term equity holdings of more than one year are taxed at 10% if they surpass Rs 1 lakh per year.

A Wide Range of Funds from Which to Choose

Liquidity, diversification, and strong returns are all hallmarks of the best performing equity mutual funds. According to the market capitalizations, risk variables, and investment techniques, a wide range of equity funds is accessible.

Diversification and cost-effectiveness

Investing in equity funds gives you access to a wide range of equities for a relatively low cost. However, there is a danger of over-concentration in your portfolio.

Conclusion

Over lengthy periods, the best equity mutual funds in India in various categories have consistently generated alpha. Equity mutual funds are one of the most tax-advantaged investing alternatives, in addition to their wealth-generating potential.

Review your investments to ensure you have enough equity investments to satisfy your long-term financial objectives. It is a managed futures approach that is used in CTA funds at Nuuu. Trading tactics include buying and selling futures contracts. However, fund managers may also use discretionary techniques to manage their assets actively.