Equity, as the name suggests, is a category where the fund invests in equity and equity related instruments across market capitalization and typically adopts the fundamental style of investing. An equity mutual fund invests 60% or more of its funds in equity shares of companies. The could be a purely large-cap funds or a mixture of stocks of companies with different types of funds. Moreover, the investing style may be value-oriented or growth-oriented. SEBI has fixed the upper limit of expense ratio at 2.5% for equity funds and may reduce it even further.
During the Covid triggered economic crisis, markets saw the biggest downfall in years. Fund return rates are dipping and people are withdrawing their money from the markets out of fear and panic. During such a critical time, we wanted to highlight for the investors that now isn’t the right time to sell out your funds. Rather, think of it as a low wave and ride out the market dip patiently.
Furthermore, it will be a fantastic idea to purchase equity funds right now. The main reason for that is that you will be able to buy more units of the fund at the same price. Adding more equity to your portfolio will give you huge benefits in the longer term when the markets peak in the coming future. you can also start investing in a SIP and ensure that you save steadily for your big life goals. Again, maxing out on equity purchase if you already have an SIP running will yield huge profits later. Buy more units at low prices today, and sell them at high later on.
Here’s the list of Top 10 Equity Funds for 2020, you can consider investing in:
#1 Equity Mutual Funds: Axis Bluechip Fund – Direct – Growth
Axis Bluechip fund seeks to generate long-term capital growth by investing predominantly in large-cap funds and is the perfect option for conservative investors. The fund has generated over 7% returns in the past 5 years.
The fund is managed by Shreyash Devalkar since November 2016 and could continue to maintain its performance given its large-cap bias. Invest in it if you are looking at a long term investing horizon of over 4 years and earn good returns.
#2 Equity Mutual Funds: HDFC TOP 100 Fund – Direct – Growth
HDFC Top 100 Fund seeks to achieve long-term growth at relatively moderate levels of risk through a diversified investment approach. with around 84% in large cap stocks and over 6% in mid cap stocks. The fund seeks to identify companies with sound corporate management and prospect of good future growth.
The fund has generated over 2% returns over the five-year period, the sudden downfall can be attributed to the COVID crisis here. The fund is currently managed by Prashant Jain since June 2003. The fund is likely to better its performance streak over the long term with the dissipation of the pandemic.
#3 Equity Mutual Funds: DSP Equity Fund – Direct – Growth
DSP Equity Fund seeks to generate long-term capital appreciation, from a portfolio of equity and equity-related securities. The fund has generated nearly 6% returns over the five-year period and is currently managed by Atul Bhole since June 2016.
The fund is likely to continue with its performance as the fund manager follows an approach of picking individual investment opportunities with both value and growth strategy. It is suitable for investors looking to invest over a long term period of over 4 years and are willing to take moderate risks.
#4 Equity Mutual Funds: IDFC Sterling Value Fund – Direct – Growth
IDFC Sterling Value Fund has 96.08% investment in Indian stocks of which 15.8% is in large cap stocks, 35.14% is in mid cap stocks, 39.86% in small cap stocks. The fund has provided consistent returns over the last few years, until this year when the Covid crisis dropped the high return rates. Currently, the fund has generated -2% average annual returns over the five-year period but we are hopeful that it will come around as Covid triggered crisis subsides.
The fund is managed by Anoop Bhaskar since April 2016. The performance is likely to get better in the future as contemplated above. It is suitable for investors who are willing to take a high risk bet as compared to other equity funds occasionally.
#5 Equity Mutual Funds: DSP Top 100 Equity Fund – Direct – Growth
HDFC Equity Fund seeks to generate capital appreciation/income from a portfolio, predominantly invested in equity; equity related instruments. It has 97.28% investment in indian stocks of which 83.07% is in large cap stocks, 1.54% is in mid cap stocks, 2.36% in small cap stocks. The fund has generated around 2% returns over the five-year period – the current low return rate can again to traced back to the Covid incited economic crisis.
The fund is managed by Gopal Agrawal since October 2018. Given the approach of the fund, it is a good option for investors who seek to generate consistent returns over the next few years and are looking to invest for a span of over 4 years.
#6 Equity Mutual Funds: ICICI Prudential Bluechip Fund – Direct – Growth
ICICI Prudential Bluechip fund seeks to generate capital appreciation through investments in majorly large cap funds and around 2% of debt funds. It is again a good option for investors looking for investing their money over a longer term.
The fund generated over 3% returns over the five-year period and is managed by Rajat Chandak since July 2017. The fund is likely to continue with its performance, and get back on the right track slowly after Covid subsides.
#7 Equity Mutual Funds: Nippon India Large Cap Fund – Direct – Growth
Nippon India Large Cap Fund seeks to generate long term capital appreciation by investing predominantly into equity and equity related instruments of large cap companies. The secondary objective is to generate consistent returns by investing in debt, money market securities, REITs and InvITs.
The five-star rated fund generated around 2% returns over the five-year period and is managed by Sailesh Raj Bhan since August 2007. The fund approach is conservative suitable for long term investors. The Covid crisis has had a huge impact on the fund performance over the last few months but once the crisis is over, the performance is likely to gradually improve over the long-term.
#8 Equity Mutual Funds: SBI Bluechip Fund – Direct – Growth
SBI Bluechip Fund seeks to provide investors with opportunities for long-term growth in capital through an active management of investments in a diversified basket of large cap equity stocks. The fund has generated a return rate of around 3% over the last 5 years.
The fund is managed by Sohini Andani since September 2010. It is suitable for long term investors who are not averse to bearing moderate losses.
#9 Equity Mutual Funds: Mirae Asset Large Cap Fund – Direct – Growth
Mirae Asset Large Cap Fund seeks to generate long term capital appreciation by capitalizing on potential investment opportunities by predominantly investing in equities of large cap companies. The Scheme is suitable for investors looking at a long term investment horizon.
#10 Equity Mutual Funds: IDFC Large Cap Fund – Direct – Growth
IDFC Large Cap Fund seeks to invest in large cap stocks predominantly, to generate long term capital appreciation. The four-star rated fund generated over 2% returns during the five-year period, the sudden dip in the return rates can be again attributed to the Covid crisis.
The fund is managed by Arpit Kapoor since March 2017. It is suitable for investors who are looking to invest for the longer term and are ready to bear moderate losses.
Our Approach to Evaluating Best Equity Mutual Funds:
We have evaluated based on both qualitative and quantitative factors such as returns, fund size, fund managers, the reputation of fund house, and investment philosophy. Here is our analysis:
|Large-Mid||NAV / Index Value in Rs.||Annualized Return %|
|AUM in Cr
|1 Year||3 Years||5 Years||10 Years||Since Inception|
|Axis Bluechip Fund||12716.81||28.43||-4.54||6.51||7.03||9.79||9.82|
|HDFC Top 100 Fund||14831.72||361.83||-24.34||-4.61||1.59||7.02||16.43|
|DSP Equity Fund||3151.47||34.41||-7.08||0.01||5.21||8.69||10.05|
|IDFC Sterling Value Fund||2176.4||32.53||-33.01||-11.94||-2.00||6.81||10.16|
|DSP Top 100 Equity Fund||2082.21||166.233||-16.15||-9.65||1.63||6.36||17.77|
|ICICI Prudential Bluechip Fund||21820.93||34.14||-16.59||-1.12||3.46||9.22||10.78|
|Nippon India Large Cap Fund||9860.63||25.0589||-25.71||-4.52||1.34||8.16||7.48|
|SBI Bluechip Fund||19785.45||31.70||-15.82||-2.83||2.91||8.76||8.46|
|Mirae Asset Large Cap Equity Fund||15347.16||41.07||-16.05||-0.21||5.53||10.93||12.40|
|IDFC Large Cap Fund||412.11||27.46||-11.44||-0.29||2.72||6.67||7.52|
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