Equity mutual funds – Welcome to

Grab the Benefits of the Market!!! Invest in Mutual Funds!

The sudden hit of Sensex beyond the milestone index of 60,000 has become the buzzing matter among Indian investors. The consistency in growth and return in several stocks, bonds and mutual funds has increased the probability of a less volatile and stable market in which the investors can believe. After the trauma of the 2nd wave of COVID 19 in India, the market is gaining its strength. So, it is high time to grab the benefits of the market through investing in several schemes of mutual funds.

We know very well that mutual fund investments are subject to market risk. When the market provides a consistent return, so many investors refrain from investments from the fear that the market might fall again. On the other hand, there are prospective investors who choose a bull market to invest in because a bull market ensures that the condition of the economy is favourable and the market has more potential to rise.

The Sensex index hit 61,305.95 today (14 October 2021) at the end of the week. It crossed the historical index of 60,000 for the first time on 24 September 2021, less than a month ago. In the meantime, it has fallen for a few days but it came back once again and is on rising till the date. The present scenario proves that the Indian market has regained its stability. The small and medium cap companies (as per the present market capitalisation) are rising almost simultaneously with the large-cap companies.

Mutual Fund is the most reliable way when you think of flexibility and high return simultaneously. Despite the volatile market during the COVID 19 phase in 2020 and 2021, most of the funds proved themselves capable enough to fight in any hard situation. Even there have been few funds that we’re able to secure more than 50% annual return. So, one thing is very clear, mutual funds were able to scatter the risk factor when the market was volatile. Because the mutual fund portfolio follows diversification so that the investors get a standard return even when there is a bear market.

So, it is quite clear that mutual funds are able to bring you high returns in the bull market. The market is able to provide you with a post-positive return in this condition. Market’s staying with the historical index of 60,000 for a longer period assures you the probability of handsome return in the coming period of time. To be able to catch the benefits of the market, we may consider the following while investing:

Invest in mutual funds rather than stocks. When you have a chance to lose capital for a specific stock, mutual funds comparatively lower the risk factors through diversification.
Invest for the long term. at least for a three years’ locking period for a desirable return.
Though most investors invest in equity mutual funds, it is better to keep 20-30% of your investments in other funds like focussed funds, hybrid funds, or debt funds.
Determine your risk appetite and investment horizon wisely before choosing any fund.
Read fund related documents carefully before you proceed with investments.

You can grab the benefits of the market when you invest sensibly and wisely. To determine the level of benefit you can get from the present market a sincere study on the market condition of the present and the past is essential. You may consult an AMFI registered mutual fund distributor for more information.

Top 5 Equity and Debt Mutual Funds in the Present Market

Top 5 Equity and Debt Mutual Funds

Equity mutual funds are very popular to the present days’ investors for the flexibility of the schemes, funds’ liquidity, high return possibilities and so many other reasons. On the other hand, debt mutual funds are trusted by the investors for the security and consistency in return. Determining the top 5 equity and debt mutual funds in the present market condition depends on several factors. Only a short term return does not evaluate the quality of a mutual fund to be on the top. Otherwise, the top 5 equity funds can not be compared with the top 5 debt funds because the return and risk factors of both the funds are completely different. You need to determine what are the top 5 funds according to your investment goal, and risk appetite. If you want to diversify your investment portfolio, you may have a glance at all the funds that top the lists.

We have prepared separate lists of the top 5 equity funds and debt funds according to their category so that you can easily find the best one for you. For choosing the top five funds in the lists, we have considered few factors like CRISIL ranks (only 4 & 5 rated funds are chosen), AuM, consistency of their return in the last five years, etc. Investors are always encouraged to invest in different types of funds according to their investment goals, risk appetite for maintaining a diversified investment portfolio.

Top 5 Equity Mutual Funds

Sl. No	Equity funds	CRISIL Rank	AuM (Cr)	1 year return	3 years’ return	5 years’ return
1	Mirae Asset Emerging Bluechip Fund – Direct-(Large & Mid Cap Fund)	5	20,615.27	68.02%	25.41%	22.77%
2	Quant Active Fund – Direct Plan – Growth (Multi Cap Fund)	5	1050.80	82.64%	30.82%	24.78%
3	Canara Robeco Bluechip Equity Fund – Direct Plan – Growth (Large Cap Fund)	5	4,271.67	54.08%	61.68%	18.90%
4	Quant Tax Plan – Direct Plan – Growth (ELSS)	5	368.44	89.62%	32.54%	25.13%
5	SBI Focused Equity Fund – Regular Plan – (Focused Fund)	4	19,429.10	63.27%	21.42%	18.97%

Top 5 Debt Mutual Funds

Sl. No	Debt funds	CRISIL Rank	AuM	1 year return	3 years’ return	5 years’ return
1	Aditya Birla Sun Life Banking & PSU Debt Fund – Regular Plan – Growth (Banking and PSU Fund)	4	18,124.91	5.91%	8.98%	7.76%
2	Sundaram Banking & PSU Debt Fund – INSTITUTIONAL – Growth (Banking and PSU Fund)	4	998.30	3.79%	7.79%	6.85%
3	Nippon India Corporate Bond Fund – Direct Plan – Growth (Corporate Bond Fund)	5	3,861.90	7.19%	8.30%	7.85%
4	DSP Strategic Bond Fund – Direct Plan – Growth (Dynamic Bond Fund)	5	709.09	5.57%	10.51%	7.67%
5	Edelweiss Government Securities Fund – Regular Plan – (Gilt Fund)	5	99.03	8.50%	11.89%	8.93%

Disclaimer: These lists of top five mutual funds are based on research in several factors like the CRISIL score, Asset Under Management (AuM), 1-5 years’ consistent returns and growths etc. For the convenience of the new investors, the lists of the top five have been prepared in several segments. This will help inexperienced investors to find out reliable mutual funds according to their own investment goals and risk appetite. However, this representation is on the basis of subjective findings, the lists of top five mutual funds in several segments might differ in several contexts. During the ti e of COVID 19, Market appears to be volatile in some cases, but the investors need to keep their patience for the desired outcome. You may consult an AMFI registered mutual fund distributor for experts’ advice and guidance.

*Information as of 17 September 2021

*Source of data: moneycontrol.com

Risk Factors and Returns in Equity Mutual Funds

Equity mutual funds invest in different types of shares according to the present market condition. Such mutual fund is famous for high return capability; it invests in the shares of several companies after a sincere study of their market value and past records. Investors need to have a study on the present market condition and the past record of a mutual fund before investing in the equity fund of it to avoid potential losses. All equity mutual funds are not the same; Investors need to have a clear cut idea of a type of equity fund before moving for investment. An equity mutual fund is liable to invest at least 60% of its total wealth in the equity shares of different companies; the rest of the portion it invests in debt funds or in other schemes.

Types of Equity Mutual Funds

Equity Mutual Funds on the basis of Risk Factors

Mutual fund investment is subject to market risk; an equity mutual fund is also no exception. The fund manager of an equity mutual fund organizes the scheme on the basis of risk factors too. As an equity mutual fund invests more than 60% of its assets in equity shares, it bears a comparatively greater risk than a debt security fund. However, the risk factors also depend on the market capitalization of the shares of a company. Equity funds that invest in large-cap funds of the top 100 shares bear fewer risk factors than the equity mutual funds which invest in the mid-small cap funds.

Funds on the basis of Market Capitalization

Equity mutual funds can be categorized on the basis of the market capitalization of the company where it is investing. Some equity mutual funds invest in large-cap funds for a secured return over a period of 2-4 years. This fund comprises blue-chip companies that have the largest amount of market capitalization. On the other hand, medium-small cap funds are comparatively volatile, have greater risk factors, but have better return possibility. These mutual funds invest in the shares of the companies that share a comparatively lesser amount of market capitalization. Some equity mutual funds are Flexi-cap funds, as the fund managers don’t depend on market capitalization value, but the potentiality of the share.

Funds of the Basis of Themes

A number of equity linked mutual funds in the current market invest in the shares of a specific type of company. These are the theme-based equity funds that choose shares from different sectors like pharmaceuticals, real-estates, banking, and finance, etc. The fund manager of such mutual funds chooses the shares of companies on the basis of a common theme. For instance, if the average market of infrastructure is going well now, he might choose the shares of different infrastructure companies from different levels of market capitalization. This type of equity funds are less flexible and bear a comparatively greater risk. However, in terms of return, they have a good record too.

Funds on the basis of Features

Equity mutual funds can be categorized on the basis of features of the investments. Some funds offer the investors the opportunity of investments through a Systematic Investment Plan (SIP). You also get the option of investment in ELSS funds for tax saving U/S 80C of the Indian Income Tax Act.

To Sum up

Equity mutual funds are suitable options for those who want to take mutual funds as goal based investing. Here you have a high scope of earning a good amount with such investments. Otherwise, you get benefits like tax savings under 80C in several equity funds under the ELSS scheme. Before investing in an equity mutual fund, you need to be aware of your criteria like risk factor, tax exemption, the term of investments, etc. You should also study the market over a few years and go through all the terms and conditions before choosing a fund for investment. The best equity mutual fund is that fund which matches your investment capability and financial goal well. Your financial portfolio is diversified when you invest in equity mutual funds. This increases your earning and your credibility as a prospective investor. You can choose and invest online in an equity mutual fund according to your financial goal and risk appetite. Consult an AMFI Registered Mutual Fund distributor to know more.