Top Equity Mutual Funds for High Returns in India

1. Mirae Asset Midcap Fund

Overview

Mirae Asset Midcap Fund is a prominent player in the midcap category, known for its consistent performance and robust portfolio management. It has been ranked #1 of 22 in the Mid Cap category, making it a top choice for investors seeking high returns.

Key Features

The fund boasts an expense ratio of 0.62%, which is competitive in the midcap segment. Additionally, it has a long-standing history of over 11 years, providing a sense of stability and reliability to its investors.

Investment Details

Performance

Mirae Asset Midcap Fund has consistently outperformed its peers, making it a preferred choice for those looking to invest in midcap funds. Its strong track record and efficient fund management have contributed to its top ranking in the category.

2. HDFC Defence Fund

Overview

The HDFC Defence Fund is a thematic mutual fund that focuses on the defense sector. In April, it delivered the highest return among its peers, around 12.56%. This fund was the only one to achieve double-digit returns during this period.

Performance

The table below highlights the recent performance of the HDFC Defence Fund:

Investment Strategy

The fund primarily invests in companies that are part of the defense sector, including those involved in manufacturing, services, and technology related to defense.

Risk Factors

As a thematic fund, it carries higher risk due to its concentrated investment in a specific sector. Investors should be aware of the sector-specific risks and market volatility associated with such investments.

Suitability

This fund is suitable for investors looking for high returns and willing to take on higher risk by investing in a specific sector. It is ideal for those with a long-term investment horizon and a high-risk appetite.

3. Bandhan Tax Advantage (ELSS) Fund

Fund Performance

The Bandhan Tax Advantage (ELSS) Fund has delivered 28.88% annualized returns over the past three years and 18.62% in the last five years. This fund falls under the Equity category of IDFC Mutual Funds.

Minimum Investment Amount

The minimum amount required to invest in the Bandhan Tax Advantage (ELSS) Fund via lump sum is ₹5,000.

Risk Level

The fund is categorized under the ‘Very High’ risk level, making it suitable for investors with a high-risk appetite.

Asset Under Management (AUM)

The fund has an AUM of ₹2,535 crore, indicating a strong investor base and robust fund management.

4. SBI Contra Fund

Fund Overview

The SBI Contra Fund is a unique offering under the Equity category of SBI Mutual Funds. It has shown remarkable performance over the years, making it a popular choice among investors looking for high returns.

Performance

The fund has delivered impressive returns, with 28.53% annualized returns in the past three years and 26.81% in the last five years. Below is a table summarizing its performance:

Investment Details

The minimum investment amount required to invest in SBI Contra Fund via lump sum is ₹5,000, and via SIP is ₹500.

5. Quant ELSS Tax Saver Fund

Overview

The Quant ELSS Tax Saver Fund is a popular choice among investors looking for tax-saving options with high returns. This fund has consistently delivered impressive returns over the years.

Performance

The fund has shown remarkable performance with a 1-year return of 60.9%, a 3-year return of 34.63%, and a 5-year return of 28.38%. Here is a summary of its performance:

Investment Details

The minimum investment amount for the Quant ELSS Tax Saver Fund is ₹500, both for lump sum and SIP investments. The fund has an AUM of ₹9,360 Crores.

6. Tata Small Cap Fund

Fund Overview

The Tata Small Cap Fund is a prominent player in the small-cap equity mutual fund category. It has consistently delivered impressive returns over the years.

Minimum Investment Amount

The minimum amount required to invest in Tata Small Cap Fund via lump sum is ₹5,000 and via SIP is ₹100.

Fund Performance

The Tata Small Cap Fund has given 28.16% annualized returns in the past three years and 29.5% in the last five years.

Asset Under Management (AUM)

The fund’s AUM stands at ₹6,951 Crores.

1-Year Returns

The fund has delivered a remarkable 41.4% return in the past year.

7. SBI Long Term Equity Fund

Overview

The SBI Long Term Equity Fund is a popular choice among investors looking for high returns over an extended period. It falls under the Equity category of SBI Mutual Funds and is known for its robust performance.

Fund Performance

The fund has delivered impressive returns over various time frames. In the past three years, it has provided an annualized return of 27.14%, while over the last five years, the return stands at 22.74%.

Investment Details

The minimum investment amount for the SBI Long Term Equity Fund is ₹5,000. The fund has an AUM (Assets Under Management) of ₹23,411 crore, making it a substantial player in the market.

Risk and Suitability

This fund is categorized as having a very high risk, making it suitable for investors with a high-risk appetite looking for long-term capital appreciation.

8. Motilal Oswal Large and Midcap Fund

Fund Overview

The Motilal Oswal Large and Midcap Fund is categorized under the Equity segment of Motilal Oswal Mutual Funds. It aims to provide high returns by investing in a mix of large and midcap stocks.

Performance

The fund has shown impressive performance over the years. Here are some key performance metrics:

Investment Details

The minimum investment amount required to invest in this fund via lump sum is ₹500, and the same amount applies for SIP investments.

9. ICICI Prudential Large & Mid Cap Fund

Overview

The ICICI Prudential Large & Mid Cap Fund is a prominent choice in the Equity category of ICICI Prudential Mutual Funds. It has consistently delivered impressive returns over the years.

Fund Performance

The fund has given 26.3% annualized returns in the past three years and 22.15% in the last five years.

Investment Details

The minimum amount required to invest via lump sum is ₹5,000 and via SIP is ₹100.

Key Metrics

10. Axis Small Cap Fund

Overview

Axis Small Cap Fund is a prominent player in the small-cap equity mutual fund category. With an AUM of ₹20,137 Crs, it has shown remarkable performance over the years. The fund requires a minimum investment of ₹100, making it accessible to a wide range of investors.

Performance

The fund has delivered impressive returns, with a 1-year return of 36.5%, a 3-year annualized return of 24.97%, and a 5-year annualized return of 27.55%. This consistent performance makes it a strong contender for those looking to invest in small-cap funds.

Investment Details

Expense Ratio

The fund has an expense ratio of 0.52%, which is relatively low compared to other small-cap funds. This makes it a cost-effective option for investors.

Conclusion

Investing in equity mutual funds can be a rewarding strategy for those looking to achieve high returns over an extended period. Different equity mutual funds may generate varying returns based on factors such as portfolio composition, market conditions, investment time period, and risk level. The primary objective of these funds is to achieve positive returns over a long-term horizon. While the funds listed in this article have shown impressive performance, it is essential for investors to consider their individual risk tolerance and investment goals before making any decisions. By carefully selecting the right funds, investors can potentially achieve their financial objectives and enjoy the benefits of professional management and diversified portfolios.

Frequently Asked Questions

What are equity mutual funds?

Equity mutual funds are investment funds that primarily invest in stocks or equities. They aim to generate high returns by investing in high-growth assets. These funds are managed by professional fund managers.

How do equity mutual funds generate returns?

Equity mutual funds generate returns based on the performance of the stocks in their portfolio. The returns depend on factors like market conditions, portfolio composition, investment time period, and risk level.

What is the risk level associated with equity mutual funds?

Equity mutual funds come with a higher risk level compared to other types of mutual funds. The returns can be volatile and are influenced by market fluctuations. Investors should consider their risk tolerance before investing.

Who should invest in equity mutual funds?

Equity mutual funds are suitable for investors who have a high-risk tolerance and a long-term investment horizon. They are ideal for individuals looking to achieve significant financial goals and are willing to accept market volatility.

How can I choose the best equity mutual fund?

To choose the best equity mutual fund, consider factors like past performance, expense ratio, fund manager’s experience, and the fund’s investment strategy. It’s also important to align the fund with your financial goals and risk tolerance.

What are the benefits of investing in equity mutual funds?

The benefits of investing in equity mutual funds include potential for high returns, professional management, diversification, and the ability to achieve long-term financial goals. However, they also come with higher risk.