line
Use App
Home
Mutual FundsEquity Funds

Equity Mutual Funds

Equity Funds invest in the stock market. An experienced fund manager handles the buying and selling of stocks for the fund, while ensuring optimal returns and risk balance for investors. While these are the best Equity Mutual Funds to invest in, you must know these 3 things before you start investing. Read More

Best Equity Funds to Invest in 2024

Returns Calulator Based on Annualised Returns

Investment Type

SIP Amount

Check the Returns of Your Investment in

​searchlogo

Total Investment

₹ NaN

Returns

₹ 0

(NaN%)

Maturity Value after -

₹ 0

Disclaimer: Mutual fund investments carry market risks; read all scheme-related documents carefully. Past performance does not guarantee future returns.


Explore Equity Funds by Types


About Equity Funds

Equity Mutual Funds are mutual fund schemes that invest majorly in stocks of different companies. They invest in a wide range of industries and sectors to provide you with diversification benefits. You can earn returns from these funds in two ways: capital appreciation and dividends. The following are the main features of Equity Funds:
  1. Equity Mutual Funds focus a large percentage of their fund corpus on stock investments, with the main objective of offering capital growth.
  2. When selecting stocks to buy, fund managers conduct extensive research and analysis to identify businesses with the potential for substantial growth.
  3. Equity Funds can outperform inflation and generate wealth over time. Historical data show that equity has consistently been one of the best-performing asset classes.
  4. By spreading the investment portfolio among an extensive variety of stocks, equity funds mitigate risk and offer higher returns than traditional investments.
Equity Mutual Funds offer you a high risk-return ratio that can endure long-term market volatility and inflation. It can act as a powerful tool that can provide you the exposure to the constantly evolving stock market without requiring the selection of particular stocks.
Equity Mutual Funds are considered one of the best options for investing for long-term wealth accumulation. There are many advantages of investing in Equity Funds as mentioned below:
  1. Equity Funds have historically outperformed other asset classes such as debt.
  2. By investing in a range of stocks, these funds help you to diversify your portfolio. This can lower your risk and shield your money from unpredictable market movements.
  3. When compared to fixed-income investment options, Equity Mutual Funds provide substantial capital appreciation. This ability not only makes this fund category a long-term investment option but also a shield against inflation.
  4. Fund managers research the market, evaluate the performance of companies, and then select the best-performing stocks to purchase and maximize returns.
  5. Equity-linked savings scheme (ELSS) is part of equity funds, which is specially designed for saving taxes. Investing in these funds allows you to reduce your taxable income by up to Rs. 1.5 lakh.
The benefits of investing in Equity Funds are endless, however, they are risky too. Thus, your risk tolerance and financial objectives should be taken into account when investing.
Here are some of the factors you need to consider before investing in these funds:
  1. Equity Funds tend to be more volatile than other types of assets like bonds or fixed deposits. Equity funds may be a good fit if you have a high-risk tolerance and a long time horizon.
  2. Professional fund managers manage equity funds and make investment choices on behalf of investors. This makes it attractive for investors who do not have the time and knowledge to invest in individual stocks.
  3. Investments can be using the lump sum option or gradually over time using the Systematic Investment Plan (SIP) mode. This makes it affordable for investors with low ticket sizes, too.
  4. Equity investments are typically better suited for long-term goals. If you require funds in the short term, the volatility of equity markets may not be appropriate, as you may not have enough time to recover from market downturns if any.
Remember that, the fund's value may change depending on the condition of the market. Short-term market volatility may cause a temporary decline in your investment value. It is recommended to have a long-term approach. Also, check your investment goals and risk tolerance to decide if these funds are the right fit for you.
Equity Funds can be an appealing option for a wide range of investors:
  1. Equity Funds are ideal for those who want to invest in stocks but lack expertise or time. The fund manager handles stock selections and portfolio rebalancing, easing the pressure on investors to choose the right stocks.
  2. If you are someone who doesn't want to invest high capital into stock markets, then Equity Funds are a great way to start via SIP investments. Using equity funds, you can start investing from as low as Rs. 500.
  3. If your goals are for the longer term like saving for retirement or child education, Equity Funds can be considered. To get the maximum leverage from equity funds, you need to stay committed to the investments for at least 5-10 years. It will provide your funds the much-needed time to withstand ups and downs in the market.
Make sure to invest for a longer horizon and reduce the impact of short-term and unpredictable market fluctuations.

Explore Mutual Funds by Types

Debt Fund

Debt Funds

Better Than FD

hybrid Fund

Hybrid Funds

Some Equity, Some Debt

Elss Fund

ELSS Funds

Save Tax in Section 80C

Index Fund

Index Funds

Buy an Entire Index!


Popular Funds


FAQs

Equity funds pool money from various investors to invest primarily in stocks of companies. In India, a typical equity fund invests at least 65% of its assets in equities, aiming for capital growth over the medium to long term. Managers decide which stocks to buy or sell based on research and market trends, striving to maximize returns.

Equity funds in India are typically invested in the stock market, purchasing shares of publicly listed companies. They may focus on different sectors, company sizes (like large-cap, mid-cap, small-cap), or themes (like technology or healthcare), depending on the fund's objective. This diversification helps manage risk while seeking growth.

Equity funds aim to generate profits by investing in the stock market, but returns are not guaranteed. Their performance depends on market conditions and the skill of the fund manager. While they have the potential for high returns compared to other investment types, they also come with higher risk, especially in the short term.

No, equity funds are not tax-free in India. However, they do enjoy certain tax advantages. Long-term capital gains (on investments held for more than a year) above ₹1 lakh are taxed at 10% without indexation benefit. For short-term gains (investments held for less than a year), the tax rate is 15%.

Choosing the best equity fund involves assessing your risk tolerance, investment goals, and time horizon. Look for funds with consistent performance over different market cycles, reputable fund managers, and reasonable fees. Consider the fund's focus area, such as specific sectors or market caps, to align with your investment strategy.
Choosing the best equity fund involves assessing your risk tolerance, investment goals, and time horizon. Look for funds with consistent performance over different market cycles, reputable fund managers, and reasonable fees. Consider the fund's focus area, such as specific sectors or market caps, to align with your investment strategy.
No, it's not necessary to open a Demat account to invest in Equity Funds in India. While a Demat account is required for buying shares directly from the stock market, you can invest in Equity Funds through mutual fund accounts, which fund houses or online investment platforms can help you set up without needing a Demat account.
The choice between lumpsum investment and SIP (Systematic Investment Plan) in Equity Funds depends on your financial situation and risk tolerance. SIPs allow you to invest a fixed amount regularly, benefiting from rupee cost averaging and reducing market timing risk. Lump Sum investments might be suitable if you have a large sum of money ready to invest when the market is favourable.
To start an Equity Fund SIP online, follow these 4 steps:
  1. Open Demat Account
  2. Choose the Equity Fund you wish to invest in.
  3. Choose the SIP option, specifying the amount and SIP date
  4. Set up an auto-pay via bank account to automate the SIP payments
Yes, you can sell or redeem your Equity Fund units on any business day, without any restrictions in most cases. However, keep in mind that selling units within a short period after purchase may incur exit load charges by some funds, and the sale proceeds are subject to capital gains tax.
Generally, there is no lock-in period for most Equity Funds, allowing you to buy and sell units at any time. However, specific categories like ELSS (Equity Linked Savings Scheme) funds have a lock-in period of 3 years from the date of investment, offering tax benefits under Section 80C of the Income Tax Act.
Equity Funds are subject to market risk, meaning the value of your investment can fluctuate based on stock market movements. Other risks include specific risks related to the sectors or companies the fund invests in, management risk, and the risk of not meeting investment objectives. Equity Funds are generally suitable if you have a higher risk tolerance and a long-term investment horizon.

No, Equity Funds are not 100% safe. They invest in the stock market, which is subject to volatility and can experience both upward and downward movements. While Equity Funds have the potential for higher returns, they come with debt fund deposits. It's important to consider your risk tolerance and investment horizon before investing in Equity Funds.





Invest in Top Rated Funds at

0% Commission!

Choose from 1500+ Direct Mutual Funds.


border
logo

Join us on

community logo

Follow us on

twitter
telegram
Linkedin
youtube
instagram
facebook

built with love
for Indians who love to invest & trade

raise

We are part of Raise Financial Services

raise
raise

Explore  |  Sitemap


*All securities mentioned on this website are exemplary and not recommendatory.

We are bullish on India, we are bullish on India's prospects to be one of the largest economies in the world. We believe that the stock market provides a unique opportunity for all of India's traders and investors to participate in the growth story of the country.

Yet, most investing & trading platforms in India have remained more or less the same over the past decade. Times have changed and retail traders and investors have become smarter about managing their trades and money. Modern traders & investors require an online trading platform that helps them keep up with the technological advancements of our time.

That's why we're building Dhan - to help you trade, to help you invest, and to help you participate in India's growth stock via the stock market with awesome features and an incredible experience.

We are doing so by giving you access to not just one but 6 products within the Dhan ecosystem:


This means that with Dhan, you'll be able to start:


Lakhs of users already trust Dhan for their online stock trading and investing needs. Dhan is growing rapidly because of the love we receive from SuperTraders and Long-Term Investors who acknowledge that the platform is innovating for them, building super useful features that help them do everything from investing in stock market to trading F&O like a pro on the Tradingview charts and much more.

While we are growing, we will always remember why we started building in the first place - you. Our user-first approach will always be at the heart of our philosophy. Come join us on this incredible journey!

Try it out, you can close your account at anytime using this link.

©2021-2024 Moneylicious Securities Private Limited. All rights reserved. CIN: U74999MH2012PTC433549 Moneylicious Securities is part of Raise Financial Services.

SEBI Stock Broker Registration No: INZ000006031 | Depository Participant (CDSL) ID: IN-DP-289-2016
Exchange Membership No. : NSE: 90133 | BSE: 6593 | MCX: 56320
Registered Office: 302, The Western Edge I, Off Western Express Highway, Borivali East, Mumbai - 400066, Maharashtra, India.
Corporate Office: 302, The Western Edge I, Off Western Express Highway, Borivali East, Mumbai - 400066, Maharashtra, India. Customer Care: 9987761000.

Details of client bank account

For any query / feedback / clarifications, email at help@dhan.co.

In case of grievances for any of the services rendered by Moneylicious Securities Private Limited, please write to grievance@dhan.co (for NSE, BSE and MCX) or grievancedp@dhan.co (for Depository Participant). Please ensure that you carefully read the Risk Disclosure Document as prescribed by SEBI, our Terms of Use and Privacy Policy. Compliance Officer: Mr. Manish Garg and Mobile: 8655740961 Email: complianceofficer@dhan.co To lodge your complaints using SEBI SCORES, click here.


Disclaimer: All communications with the client in the chat section are for support purposes only, and any commitments or statements made by the agent (human or virtual) shall not be binding on the company.


DHAN is a brand owned by Moneylicious Securities Private Limited. All DHAN clients are registered under Moneylicious Securities Private Limited. Clients are advised to refer to our company as Moneylicious Securities Private Limited when communicating with regulatory authorities.


Procedure to file a complaint on SEBI SCORES: Register on SCORES portal. Mandatory details for filing complaints on SCORES: Name, PAN, Address, Mobile Number, E-mail ID. Benefits: Effective Communication, Speedy redressal of the grievances


Disclaimer: Investment in the securities market are subject to market risks, read all the related documents carefully before investing. Brokerage will not exceed the SEBI prescribed limit


Attention investors:

  1. Stock brokers can accept securities as margins from clients only by way of pledge in the depository system w.e.f September 01, 2020.
  2. Update your e-mail and phone number with your stock broker / depository participant and receive OTP directly from depository on your e-mail and/or mobile number to create pledge.
  3. Check your securities / MF / bonds in the consolidated account statement issued by NSDL/CDSL every month.

Note: As a policy we do not give stock tips or recommendations and have not authorized anyone to give this on behalf of us. If you know anyone claiming to be a part of Dhan / Moneylicious / Raise or our associate companies or partners and offering such services, please report us on help@dhan.co. Important Information for Investors: To prevent unauthorized transactions in your trading / demat account, do not share your account details, credentials or any personal details with anyone. Keep your mobile number updated with your Stock Broker, Depository Participant and ensure that the same is registered with Stock Exchanges, Depository and KRAs. You will receive alerts and information on your registered mobile number / email for debit and other important transactions in your demat account directly from CDSL / Exchange on the same day. KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (Stock Broker, DP, Mutual Fund, etc.), you need not undergo the same process again when you approach another intermediary. No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account. This is issued in the interest of investors.


Moneylicious Securities Private Limited also known as Dhan is only an order collection platform that collects orders on behalf of clients and places them on BSE StarMF for execution. Client expressly agrees that Dhan is not liable or responsible and does not represent or warrant any damages regarding non- execution of orders or any incorrect execution of orders with regard to the funds chosen by the client or due to, but not being limited to, any link/system failure, delay in transfer of the funds on account of any unforeseen circumstances/issues in the banking system/payment aggregators or any other problems that may result in a delay in crediting the funds into the BSE Star MF's bank account.


Mutual fund investments are subject to market risks, read all scheme related documents carefully before investing. Dhan is not a distributor or agent of any mutual fund. Mutual Funds are not exchange-traded products. Any related disputes will not have access to the Exchange-investor redressal forum or arbitration mechanism. For other disclaimers please refer https://dhan.co/advertisement-disclaimer/


Download client registration documents (Rights & Obligations, Risk Disclosure Document, Do's & Don'ts) in vernacular language: BSE | NSE | MCX


Kindly, read the Advisory Guidelines of BSE | NSE | MCX for investors as prescribed by the exchange with reference to their circular dated 27th August, 2021 regarding investor awareness and safeguarding client's assets


Important Links: SEBI | BSE | NSE | MCX | CDSL | SCORES | ODR Portal | Investor Charter for Stock Brokers | Investor Charter for DP | UCC Advisory | e-Voting for Shareholders | NCL Client Collateral details |
MCXCCL Client Collateral details

Important Information: Terms of Usage | Disclaimers | Privacy Policy | Grievances | Risk Management Policy | Risk Disclosure | Advertisement Disclaimer | Saarthi 2.0 Mobile App for Investors