Is it good to invest in equity funds?

Yes, it is good to invest in equity funds because historically, in the long-run, they have given better returns than other investment options. Although you need to be patient and stay invested through ups and downs if you want to really reap the benefit of investing in them.

Are equity funds high risk?

Equity Funds invest in stock markets and markets do fluctuate. For this reason, in the short-term, the risk is higher compared to instruments like FDs. However, if you stay invested long enough, the probability of loss is almost zero, and that of making good returns extremely high.

Which is a better mutual fund or equity?

Investing in Equity Mutual Funds is a better option if you do not have adequate time or knowledge to do your own research. Mutual Funds are also better suited for those investors who want to invest small amounts in Equity. Through Equity Funds, you can start with as low as Rs. 100, while investing directly in Equity will require a significant corpus.

Which type of equity fund is best?

The best type of equity Fund will vary according to your need, the risk you are willing to take, and your investment horizon. To save tax, opt for ELSS which has a 3-year lock-in period. If you don't want the lock-in and tax saving option, Large Cap funds or Flexi Cap funds will fit the bill. If you can take higher risks and stay invested for at least 7 years, choose small-cap funds or mid-cap funds.

Mutual Funds
Genius
Stocks
NPS
Fixed Deposit
Loan Against Mutual Fund
Tax Saving Maximizer
Credit Score
Insurance
- Term Life Insurance
- Health Insurance
Calculators

Equity Funds

Equity Funds are a kind of Mutual Funds that invest in the stock markets. The stocks are selected by a team of professionals who try to deliver maximum returns from your investments while keeping risk in control.

Equity Funds give you a diversified portfolio. Most funds have 40-50 stocks in their portfolio. This reduces the risk you take.
Equity Funds can see some ups and downs in the short-term, so you will need to be patient.
Invest in Equity Funds only if you can stay invested for at least 5 years

Types of Equity Funds

By Market Capitalization

Large Cap
Invests in Top 100 stocks
Mid Cap
Invests in Next 150 stocks
Small Cap
Invests outside Top 250 stocks
Large & MidCap
Invests in Top 250 stocks

Index

Multi Cap Index
Passively invest in large, mid, & small-cap stocks
Large Cap Index
Passively invest in top 100 companies
Mid Cap Index
Invest to replicate mid-cap indices
Small Cap Index
Invest to replicate small-cap indices
Large & MidCap Index
Passively invest in large & mid-cap companies
International Index
Invest to replicate sector-specific indices
Other Equity Index
Passively invest in top 100 companies

By Diversification

Multi Cap
Invests in stocks across market cap
Flexi Cap
Invests across large, mid and small-cap stocks
International
Invests in world's top stocks
Strategy
Invests in debt and arbitrage funds

Others

ELSS
Invest to save taxes under 80C and earn additional returns
Retirement Solutions
Aggressive saving strategy for retirement
Children Solutions
Aggressive investments to save for your child's future

Sector

Sectoral-Banking
Invests in banking stocks
Sectoral-Technology
Invests in Technology stocks
Sectoral-Infrastructure
Invests in Infra stocks
Sectoral-Pharma
Invests in Pharma stocks

Thematic

Thematic-Consumption
Invests in consumption stocks
Energy
Invests in Energy stocks
Thematic-PSU
Invests in PSU stocks
Thematic-MNC
Invests in MNC stocks
Thematic
Invests in a specific theme
Thematic-ESG
ESG Thematic Funds: Invest in Top-performing ESG themed funds in India

Best Performing Equity Mutual Funds

Scheme Name	Expense Ratio	5Y Return (Annualized)
ICICI Prudential BHARAT 22 FOF Scheme #NA of NA in Other Equity Index Unranked ETM Rank: App exclusive	0.13%	27.03% p.a.	Invest on App
ICICI Prudential India Opportunities Fund #NA of NA in Strategy Unranked ETM Rank: App exclusive	1.57%	24.41% p.a.	Invest on App
Motilal Oswal Midcap Fund #NA of NA in Mid Cap Unranked ETM Rank: App exclusive	1.55%	24.19% p.a.	Invest on App
HDFC Mid Cap Fund #NA of NA in Mid Cap Unranked ETM Rank: App exclusive	1.36%	23.35% p.a.	Invest on App
ICICI Prudential Dividend Yield Equity Fund #NA of NA in Strategy Unranked ETM Rank: App exclusive	1.8%	23.15% p.a.	Invest on App
Nippon India Growth Mid Cap Fund #NA of NA in Mid Cap Unranked ETM Rank: App exclusive	1.54%	22.32% p.a.	Invest on App
Nippon India Multi Cap Fund #NA of NA in Multi Cap Unranked ETM Rank: App exclusive	1.5%	22.19% p.a.	Invest on App
Edelweiss Mid Cap Fund #NA of NA in Mid Cap Unranked ETM Rank: App exclusive	1.67%	21.93% p.a.	Invest on App
HDFC Focused Fund #NA of NA in Strategy Unranked ETM Rank: App exclusive	1.61%	21.58% p.a.	Invest on App
Mahindra Manulife Mid Cap Fund #NA of NA in Mid Cap Unranked ETM Rank: App exclusive	1.86%	21.5% p.a.	Invest on App