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What Are The Best Equity Funds To Invest In?

There are two types of earnings one can avail through equity funds: Dividends and Capital Gain

Tuesday September 3, 2019 6:34 PM, ummid.com News Network

Equity Funds

There are different types of mutual funds. It is upon the investor to pick a fund suitable to their income and goals. Mutual funds are categorized on the basis of asset value, risk and so on. They are broadly categorized as equity funds, debt funds and hybrid funds based on the style of investment.

What are Equity Funds?

Equity funds or stock funds are mutual funds that invest in shares of companies. Such shares are called equities, hence the name equity fund. Equity funds are popular owing to its long term returns over a period of time. Best Equity funds are the ones that generate higher returns, better than other kinds of funds including debt funds.

The best equity mutual funds will give you higher returns than other kinds of funds and fixed deposit, but it comes at a higher risk than the others. Equity mutual funds are classified on the basis of its market capitalization, investment style and location. Some equity funds are known to focus on specific sector or industry.

Why Invest in Equity Funds?

Equity funds are ideal for all kinds of investors, whether they are experienced or beginners. One of the reasons that equity funds are popular among investors is that it does not require a huge sum to begin investing and gives fair returns. One can also find a number of best equity funds to invest in SIP. The diversification of the portfolio lessens the risk significantly.

Tax Saving

You are liable to pay tax for all returns. It varies from yield to yield how much tax you have to pay. Equity-Linked Saving Scheme (ELSS) comes with unparalleled tax benefits.

There are two types of earnings one can avail through equity funds: Dividends and Capital Gain. The tax on dividends, known as Dividend Distribution Tax (DDT), is cleared by the Asset Management Company (AMC) itself. The investors need not pay any other taxes on those returns.

What are other advantages of Mutual Funds?

There are many advantages to best equity mutual funds.

  1. Best equity funds are managed by professional fund managers who have the requisite experience in managing funds. They can handle the pressure and steer through highly unpredictable markets.
  2. Since the AMCs appoint experts in the field to take care of the fund, they do it methodically, after examining the variables such as concentration, volatility, liquidity and so on.
  3. Investing in small amounts ensures that the investor does not feel burdened. Best equity funds to invest in SIP allows much financial leeway to the investor.
  4. Transparency is an important factor that makes mutual funds stand out. All the AMCs that operate mutual funds are under the surveillance of Securities and Exchange Board of India (SEBI). All mutual funds are obligated to publish their Net Asset Value (NAV) and monthly portfolio online.
  5. There is a plethora of equity funds available suitable for everyone. Best Equity Mutual Funds 2019 is a feasible option for small and big investors alike.
  6. Best mutual funds to invest in SIP helps you realize a smart financial discipline that sets you apart from peers who go with conventional modes of savings.

Top Equity Funds

Following are the names of some of the equity funds that are popular and doing well. Please note that the list is solely based on past performance. It is by no means a recommendation. We do not recommend anyone to invest only based on this list.

  1. Axis Long Term Equity - Direct Growth
  2. Aditya Birla SL Tax Relief - Direct Growth
  3. ICICI Prudential Long Term Equity (Tax Saving) - Direct Growth
  4. Franklin India Taxshield - Direct Growth
  5. L&T Tax Advantage Fund - Direct Growth
  6. DSP Tax Saver - Direct Growth
  7. Kotak Tax Saver - Direct Growth

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