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What are Equity Mutual Funds?

Equity mutual funds invest mainly in shares of listed companies on stock exchanges (NSE or BSE) with the goal of generating long-term wealth by leveraging the growth potential of the stock market. Based on their strategy, these funds may target specific market segments—such as large-cap, mid-cap, or small-cap stocks—focus on particular sectors like technology or healthcare, or follow distinct investment styles like growth or value investing.

Equity mutual funds invest primarily in shares of companies, offering high growth potential for long-term investors. These funds are ideal for those seeking capital appreciation and are willing to take moderate to high risk. At Risify, we help you choose the best equity mutual funds by analyzing past performance, fund manager expertise, and risk-adjusted returns.

Explore a wide range of equity funds types—from equity income funds, equity hybrid funds, to equity-oriented mutual funds. Whether you're interested in private equity mutual funds, top performing funds, or best global equity income funds, we’ve got you covered. Compare equity mutual funds returns, view equity funds examples, and select the top equity funds for your portfolio.

Securities and Exchange Board of India (SEBI) mandates that at least 65% of the corpus in equity mutual funds must be invested in equity or equity-related instruments.

Benefits of Investing in Equity Mutual Funds

Potential for Higher Returns: Equity funds have historically offered better long-term returns than debt or fixed-income instruments, making them ideal for wealth creation over time.

Diversification: Equity mutual funds invest in a wide range of stocks, reducing the impact of poor performance from any single company and minimizing risk.

Professional Management: Fund managers with expertise and resources actively research and manage portfolios, making strategic decisions on behalf of investors.

Tax Efficiency: Long-Term Capital Gains (LTCG) up to ₹1.25 lakhs per year are tax-free. Gains above ₹1.25 lakh are taxed at 12.5% without indexation, making them more tax-efficient than many traditional instruments.

Systematic Investment Option (SIP): Investors can start with a small monthly amount through SIPs, promoting disciplined investing and rupee cost averaging over time.

Regulated and Transparent: Regulated by SEBI, equity mutual funds offer transparency through regular disclosures, NAV updates, and performance reports.

Why Choose Equity Mutual Funds Through Risify?

  • Expert-Curated Fund Selection: Risify recommends only the best equity mutual funds, including top performing funds, based on in-depth research and data-driven analysis.
  • Diverse Fund Options: From equity income mutual funds to equity hybrid funds and global equity income funds, we help you explore the right equity funds for your goals.
  • Personalized Investment Plans: Whether you're aiming for long-term growth or regular income, Risify suggests the most suitable equity-oriented mutual funds for your needs.
  • Transparent Performance Tracking: Easily compare equity mutual funds returns, risk profiles, and fund history all in one place.
  • Dedicated Relationship Manager: Get guidance from experts who help you understand different equity mutual funds types and build a strong, diversified portfolio.

Equity Funds

Equity Funds are a kind of Mutual Funds that invest in the stock markets. The stocks are selected by a team of professionals who try to deliver maximum returns from your investments while keeping risk in control.

Equity Funds give you a diversified portfolio. Most funds have 40-50 stocks in their portfolio. This reduces the risk you take.

Equity Funds can see some ups and downs in the short-term, so you will need to be patient.

Invest in Equity Funds only if you can stay invested for at least 5 years

Types of Equity Funds

By Market Capitalization

  • Large Cap

    Large Cap

    Invests in Top 100 stocks

  • Mid Cap

    Mid Cap

    Invests in Next 150 stocks

  • Small Cap

    Small Cap

    Invests outside Top 250 stocks

  • Large & MidCap

    Large & MidCap

    Invests in Top 250 stocks

Index

  • Multi Cap Index

    Multi Cap Index

    Passively invest in large, mid, & small-cap stocks

  • Large Cap Index

    Large Cap Index

    Passively invest in top 100 companies

  • Mid Cap Index

    Mid Cap Index

    Invest to replicate mid-cap indices

  • Small Cap Index

    Small Cap Index

    Invest to replicate small-cap indices

  • Large & MidCap Index

    Large & MidCap Index

    Passively invest in large & mid-cap companies

  • International Index

    International Index

    Invest to replicate sector-specific indices

  • Other Equity Index

    Other Equity Index

    Passively invest in top 100 companies

By Diversification

  • Multi Cap

    Multi Cap

    Invests in stocks across market cap

  • Flexi Cap

    Flexi Cap

    Invests across large, mid and small-cap stocks

  • Focused

    Focused

    Invests in top stocks in specific industry/segment

  • Value Oriented

    Value Oriented

    Invests in under-valued stocks with upside potential

  • International

    International

    Invests in world's top stocks

  • Contra

    Contra

    Invests against the prevailing market trends

  • Factor

    Factor

    Passively invest in strategies like value, momentum, etc.

Others

  • ELSS

    ELSS

    Invest to save taxes under 80C and earn additional returns

  • Equity FoF

    Equity FoF

    Funds that invests in other equity schemes

  • Retirement Solutions

    Retirement Solutions

    Aggressive saving strategy for retirement

Sector

  • Sectoral-Banking

    Sectoral-Banking

    Invests in banking stocks

  • Sectoral-Technology

    Sectoral-Technology

    Invests in Technology stocks

  • Sectoral-Infrastructure

    Sectoral-Infrastructure

    Invests in Infra stocks

  • Sectoral-Pharma

    Sectoral-Pharma

    Invests in Pharma stocks

  • Consumption Index

    Consumption Index

    Invest to replicate sector-specific indices

Thematic

  • Dividend Yield

    Dividend Yield

    Invests in dividend paying stocks

  • Thematic-Consumption

    Thematic-Consumption

    Invests in consumption stocks

  • Thematic-Energy

    Thematic-Energy

    Invests in Energy stocks

  • Thematic-PSU

    Thematic-PSU

    Invests in PSU stocks

  • Thematic-MNC

    Thematic-MNC

    Invests in MNC stocks

  • Thematic

    Thematic

    Invests in a specific theme

  • Thematic-ESG

    Thematic-ESG

    ESG Thematic Funds: Invest in Top-performing ESG themed funds in India

  • Business Cycle

    Business Cycle

    Invests in stocks of promising sectors

  • Quant

    Quant

    Picks stocks using algorithms

All about Equity Mutual Funds