Most people who are new to the world of investments wonder what an equity mutual fund is, how it is different from, say a debt fund and what the best equity mutual funds in the market are.
Well if you’re looking for some high return mutual funds then Cube Wealth has the right equity funds for you. These are the best equity funds of 2022 that our wealth advisors, Wealth First, have handpicked.
What is Equity Mutual Fund?
An equity fund is a mutual fund which invests primarily in the stock market. Which is why equity funds are often called stock funds as well. These can be both actively and passively managed funds (also called index funds).
However, you don’t need to get confused by the nomenclature. The simple thing to remember about equity funds is that they invest mostly in stocks and are categorized based on the size of the company, the goal of the funds and the overall portfolio. You must ensure that the fund objective is in line with your own personal wealth goals.
Who Should Invest in Equity Mutual Funds?
If you’ve ever thought “Should you invest in equity mutual funds?”, you’ll find an answer here. Equity Mutual Funds are great if you’re looking to grow wealth over the long term. The stock market has historically given better returns than other forms of investment when it comes to long term returns.
If you’re patient and are seeking steady growth in wealth, then equity funds will definitely make it to your portfolio. Think of medium to high-risk funds that are linked to the market and will give you healthy returns in 5 – 10 years.
You can also go through our top recommendations for the best mutual funds to invest in, to add on to this knowledge.
Top Performing 10 Best Equity Mutual Funds in India
Before we list the current top recommendations for best equity funds you can buy, let’s look at how we pick these funds. Our team of world-class advisors from Wealth First helps us collate this list based on their mutual fund selection methodology mentioned below:
Qualitative Parameters:
- AMC comfort – Pedigree, Credibility, Compliance, Process and Ability to Retain Top Management & Talent
- Fund Manager comfort – Experience, Reputation, Performance and Continuity Record (We have had 170+ investment and marketing team interactions in the last 1 year)
Quantitative Parameters:
- Scheme Aesthetics – Fund Size & Recent AUM Growth, Concentration Analysis, Clarity of positioning
- Performance – Historical performances (SIP, Last 20-Quarters, 3-Year, and 5-Year Numbers), Risk-adjusted returns, Sharpe, Beta, and Other Statistical Ratios
- Negative Criteria – Cash Calls, Outlier Performances, Recent Management Changes, etc.
Given below are the current top recommendations of best equity funds across risk levels and a few International equity funds we think you should consider:
While we update our blogs regularly, we recommend you download the Cube Wealth App to see the latest and most accurate data.
Best Moderate Mutual Funds to Invest in 2023
Best Moderate Mutual Funds 2020
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Axis Focused 25 Fund
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Kotak Equity Opportunities Fund
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Invesco India Contra Fund
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Mirae Asset Focused Fund
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Best Aggressive Mutual Funds to Invest in 2023
Best Aggressive Mutual Funds 2020
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Motilal Oswal Midcap 30 Fund
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Kotak Emerging Equity
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Axis Small Cap Fund
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Best International Mutual Funds to Invest in 2023
Best International Mutual Funds 2020
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Edelweiss Greater China Equity Off-shore Fund – Regular Plan
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Franklin India Feeder – Franklin U.S. Opportunities Fund
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Invesco Pan European Equity Fund
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Nippon India Japan Equity Fund
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Don’t miss out on similarly curated lists of best debt funds to invest in as well as the best SIPs to invest in – courtesy of our wealth advisors over at WealthFirst
How To Evaluate Best Equity Mutual Funds?
There are a few key things to consider while evaluating an equity fund. To begin with, you must analyse the historical returns of a fund over different time frames and compare them with the competition. Learn about the fund manager – are they experienced? Have they led funds to success in the past? Where did they study? etc.
Also, what is the objective that the fund has declared? What companies have they invested in matters most – that way you know what your money is going into. However, it is best to consult a wealth advisor for this purpose since an expert will be able to dig in far better than most investors.
For those of us who are also looking to invest in our child’s future, you should look at the possibility of investing in US equities.
How To Invest in Equity Mutual Funds?
The best way to invest in an equity fund is through an app like Cube Wealth. Here are the steps you need to follow:
- Download the Cube Wealth App
- Select risk level as medium or high
- Select the time frame as long
- Enter the amount you want to invest
- Browse recommended funds
- Tap Invest
For further assistance with documentation or if you have any questions, please EMAIL A CUBE WEALTH ADVISOR.
You can also look into investing in some of the best long term investment options, with the help of this list curated by us.
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Frequently Asked Questions (FAQs)
Q. Is it good to invest in equity funds?
Ans. Yes, equity mutual funds are great if you are looking to grow wealth over the long term. It, therefore, depends a lot on your risk appetite as well as the objective of the investment. Additionally, just as with any other investment option, investing in equities also has its benefits as well as risks.
Q. Is it safe to invest in equity funds?
Ans. Investing in equities is always subject to market risks. But when compared to stocks mutual funds are safer as they own multiple stocks and are managed by a professional fund manager. The stock market has historically given better returns than many other forms of investment when it comes to long term returns.
Q. Where can I invest in equity funds?
Ans. The best way to invest in an equity fund is through an app like Cube Wealth. Cube works with expert mutual fund advisors with a proven track record. Simply download the app to begin investing.
Q. When should you invest in equity funds?
Ans. In case you are looking to invest for the long term and our seeking steady growth in your wealth. Equity funds should definitely be a part of your investment portfolio. You should consult a financial advisor or a Cube Wealth Coach to decide which assets are right for your financial goals and needs.
In case you are interested in investing in the international market as well, this episode of the Cube Wealth Show helps you understand how to invest in US equities!
These are Cube Wealth’s top picks for the best equity funds of 2022, as shared by our advisors over at Wealth First. We update our lists regularly but recommend you connect with one of our experts through the Cube Wealth App before making any investment decisions.
Note: Always invest in mutual funds after analyzing your financial goals, investment horizon, and risk appetite.
Conclusion
The world of equity funds offers a multitude of investment opportunities for those looking to participate in the potential of the stock market. The choice of the best equity funds depends on individual investment goals, risk tolerance, and time horizon. Equity funds provide exposure to a diversified portfolio of stocks and can be a cornerstone of a well-balanced investment strategy. Thorough research, consideration of historical performance, and an understanding of fund types (such as growth, value, or index funds) are key factors in making informed investment decisions.
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