May 19, 2017 4 min read

An Analysis of the Best Equity Funds in India for SIP

Find the best trending equity funds from different categories as per your requirement.
If making the right choice of fund is your goal, and you are looking for investment in the best equity mutual funds in India, then you have reached your destination. We have the best recommendations for you in accordance with the various factors which one must consider while choosing a fund for one’s portfolio.

So your search for the best equity schemes ends here as we have listed down the top equity funds of various categories to help you select the best suited to your needs.

Small & Mid Cap Funds

The investors who are desirous of achieving the highest possible growth in capital, and for that, they are ready to take high risk, must opt for the small cap funds for their portfolio. The small-cap funds are those which have investments in the small-sized companies having a market capitalisation of up to Rs.500 crore. These companies have smaller revenue and client bases and include start-ups companies which are at their early stage of development. The small-cap companies though provide the best returns in the industry, the risk factors in them are the highest. The reason being is that they are the beginners in the industry and highly volatile to the market trends which ultimately affect the return percentages of the small-cap funds.

Being the big gainers in the market due to the potential of getting discovered in the sectors, these companies tend to show the higher growth capacity to let the investors earn tremendous returns. As per the past data available, the small-cap funds have showcased the best returns while beating the benchmark and categories with exceptional margins. The best performers in the categories as per our fund analysts include the following schemes which have given exceptional returns and have been outperforming the market for a long time.

  • Reliance Small Cap Fund (G)
  • Sundaram S.M.I.L.E Fund (G)
  • DSP Blackrock Small & MidCap Fund (G) 

Diversified Equity Fund

Mutual funds have the best tendency to diversify the invested capital in different sectors, companies, and instruments in order to minimise the risk exposure. The equity mutual fund has a sub-category named diversified equity plan which is specifically focussed on diversifying the funds in the companies falling in different market caps as well as sectors to grab the maximum market opportunities. The risk in the case of diversified fund is quite moderate due to diversification which further increases the chances of raising the returns.

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The performance of the diversified funds in the past years has proved that the schemes falling in this category is high yielding and have beaten the benchmark and category’s returns. Our fund analysts have recommended the following funds in the diversified category which have been offering consistent returns and profits to the investors. Investing in them shall definitely help one in achieving the desired investment goals.

  • Kotak Select Focus Fund (G)
  • DSP Blackrock Opportunities Fund (G)
  • Birla Sun Life Equity Fund (G)

Large Cap Mutual Fund

These are the mutual fund schemes which are mainly focused on bringing consistency in the returns and growth of capital. The investments are made in the large-cap companies which are well-established and have proven records in the market in terms of management, performance, corporate governance, and returns. Being large in size as per the market capitalisation, these companies have least risk profile when compared with other equity funds. Because of the market presence, the companies provide consistent growth and returns to the investors with minimised risk.

The performance of the large cap mutual fund in the recent past can be accelerated with the annual and trailing returns offered by them. The market volatility does not have an influence on the performance of the companies, and thus the large-cap funds tend to generate stable returns even when the market falls. The rate of return deviates at a very small percentage which does not affect the overall performance of the schemes. As per the recent analysis of the funds falling in this category, our fund analysts have recommended the following schemes to the investors which have high-rated trail as well as annual returns since their inception.

  • Reliance Top 200 Fund (G)
  • SBI Bluechip Fund (G)
  • DSP Blackrock Focus 25 Fund (G)

So now we believe you must have got what exactly you wanted. The equity mutual funds are the best plans for making your long-term investment goals fulfilled as they tend to offer high rate of financial growth with capital appreciation. As per your risk appetite and requirement you can opt for any of the above-mentioned plans from small-cap, large-cap and diversified equity category.

Furthermore, if you need any assistance in analysing fund or require detailed reports for the funds mentioned above, you must consult our financial advisors. MySIPonline and its team are always ready to cater to your needs.