Best Equity Mutual Funds in India [2025]
Equity mutual funds are one of the most popular investment choices for individuals seeking long-term wealth creation. Unlike debt funds, equity funds primarily invest in stocks of companies across different sectors, offering the potential for high returns but with higher market risk.
In this guide, we highlight the best equity mutual funds in India for 2025, their benefits, risks, types, and which investors should consider them.
What Are Equity Mutual Funds?
Equity mutual funds pool money from investors and allocate it into shares of listed companies. These funds aim to generate capital appreciation over time, making them ideal for long-term investors.
They are suitable for:
Investors with a medium to long-term investment horizon
Individuals looking for higher returns compared to traditional instruments
Investors with moderate to high risk tolerance
Top 7 Best Equity Mutual Funds in 2025
| # | Fund Name | Category | 3-Year CAGR | AUM (₹ Cr) | Expense Ratio |
|---|---|---|---|---|---|
| 1 | Kotak US Specific Equity Passive FoF Direct (G) | International Equity | 29.3% | 3,528 | 0.30% |
| 2 | BHARAT Bond FOF – April 2031 Direct (G) | Debt Fund | 7.8% | 4,829 | 0.10% |
| 3 | Quant Active Fund | Flexi Cap | 26.5% | 6,400+ | 0.74% |
| 4 | Parag Parikh Flexi Cap Fund | Flexi Cap | 22.1% | 52,000+ | 0.76% |
| 5 | Mirae Asset Large Cap Fund | Large Cap | 17.8% | 35,000+ | 0.53% |
| 6 | Canara Robeco Emerging Equities Fund | Large & Mid Cap | 19.2% | 20,000+ | 0.62% |
| 7 | SBI Small Cap Fund | Small Cap | 23.7% | 22,000+ | 0.79% |
| 8 | Axis Bluechip Fund | Large Cap | 15.1% | 21,000+ | 0.51% |
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Types of Equity Mutual Funds
| Type | Description | Risk Level |
|---|---|---|
Why Invest in Equity Mutual Funds?
- Higher returns compared to debt or FD
- Ideal for long-term wealth creation
- Professionally managed
- Diversification across sectors and stocks
- SIP option for disciplined investing
Things to Consider Before Investing
- Investment horizon (min. 5 years recommended)
- Risk tolerance (equity funds can be volatile)
- Fund manager’s track record
- Expense ratio and exit load
- Consistency in past performance
Best Platforms to Invest in Equity Funds
- Zerodha Coin
- Groww
- NJ Wealth
- Kuvera
- Paytm Money
- ET Money
- AMC’s official websites (for direct plans)
Conclusion
Equity mutual funds are powerful tools for building long-term wealth, but they require patience and risk tolerance. Always align your investments with your financial goals and risk profile, and diversify across fund categories for better stability.
Frequently Asked Questions (FAQs) on SIP
Flexi Cap funds like Quant Active Fund and Parag Parikh Flexi Cap Fund are among the top performers in 2025.
Yes. They carry market risk but tend to perform better over the long term.
Yes, most equity funds allow SIP investments starting from ₹500/month.
Yes. Long-term capital gains (LTCG) above ₹1 lakh/year are taxed at 10%. Short-term gains (under 1 year) are taxed at 15%.
A minimum of 5-7 years is recommended for optimal returns and reduced volatility.
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