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Equity mutual funds, What is equity mutual fund? Equity mutual funds invest primarily in shares of listed companies. Equity funds may invest in companies belonging to different sectors and maybe diversified across different market capitalization segments like large-cap, mid-cap, and small-cap. Large-cap, mid-cap, and small-cap funds can be found in AMC based on their investing in distinct market capitalization sectors.

Furthermore, equity funds might be active or passive. An active fund manager conducts company/sector market research and attempts to invest in the best firms, whereas a passive fund manager constructs an investment portfolio that may replicate a prominent market index, such as the NIFTY or Sensex.

I hope this answers your question of what is equity mutual funds? Now let see what are the top equity mutual funds to invest in. during 2021?

 Top Equity Fund for investment in 2021:-

Equity mutual funds are mainly classified as per market cap. You will see the best fund in each category to invest in. 

Large-cap Equity Mutual Fund –

  • This category invests predominantly in companies that run large established businesses. Mainly Top 100 companies as per market cap are part of the category. The fund we are suggesting to invest in the category is,

Mirae Asset Large-cap equity mutual fund

  1. One of the consistent funds in the category.
  2. A well-diversified portfolio with having 48 companies distributed into 30 sectors.
  3. The fund is overweight on the banking sector with around 30% exposure followed by Software 15%.

Large & Midcap Equity Mutual Fund –

  • This category invests predominantly in companies that run the large established business as well as part of the portfolio they invest into the companies which have the potential to become large. Mainly Top 250 companies as per market cap are part of the category. The fund we are suggesting to invest in the category is,

Canara Robeco Emerging Equity

  1. Offers from one of small fund house but with great long term performance.
  2. Stock selection and sector rotation is the key of the scheme.
  3. The sector where the scheme is overweight is banking and financial services around 29%. After that, the other top holding sectors are healthcare ~9% while software ~8%.

Midcap Equity Mutual Fund –

  • This category invests predominantly in companies that are mid-sized in the segment. Mainly Top 101-250 companies as per market cap is part of the category. The fund we are suggesting to invest in the category is,

Kotak Emerging Equity Fund

  1. One of the consistent performer of the category
  2. Midcap is just started making new high so good fund to invest in.

  3. The fund is overweight on industrial production as top sectoral holding (~20%), followed by banking and then construction.

Small-cap Equity Mutual Fund –

  • This category invests predominantly in companies that are small-sized in the segment. Mainly beyond the top 250 companies as per market cap is part of the category. The fund we are suggesting to invest in the category is,

SBI Smallcap fund

  1. The fund is one of the best in the last 10 years in all segments.
  2. The inflow cap of Rs. 25000 per month helps the fund manager to manage the inflow which able to deploy in the market.

  3. The fund work on a bottom-up approach and hence the fund is good for long term investor.

Multi cap Equity Mutual Fund –

  • This category investment is large-cap, midcap, and small-cap at least 25% in each category. The rest 25% can be invested anywhere in the equity segment as per the fund manager. The fund we are suggesting to invest in the category is,

ICICI Pru Multicap fund

  1. The funds emerge as a great comeback after the creation of the new category.
  2. Stock selection is the key.
  3. The fund is overweight to the backbone of the economy sector banking and financial services (32%).

Flexi Cap Equity Mutual Fund –

  • The category is true to the label means as per fund manager convince ideas they can move to any market cap without any cap or limit. It will work well when the fund manager calls go well. The fund we are suggesting to invest in the category is,

Parag Parikh Flexicap fund

  1. The fund has unique features of investment abroad around 30% which enabled them to outperform in the category.
  2. Fund management call to take arbitrage position helps to manage the liquidity.

  3. The stock selection happens with a bottom-up approach and by viewing the consistency in the future.

Sectoral Fund –

These invest in companies that are related to one type of sector or business segment only. Normally the category carries higher risk since it is related to one sector only but it rewards too if that sector does well. The fund we are suggesting to invest in the category is,

Nippon India Pharma Fund

  1. One of the oldest fund in the category with consistency
  2. Due to the current pandemic situation, it will help investors to utilize the segment

  3. It normally called as defensive sector due to consistent demand for the product like medical instruments as well as medicine.

Thematic Fund –

  • The category only invests in a theme and not only one sector. The theme can be a merge of more than one sector like economic reforms. The fund we are suggesting to invest in the category is

Axis ESG Equity fund

  1. Concept Environmental Social and Governances create responsible on the corporate world.
  2. The concept is well accepted to make responsible on every corporate for all segment and not only one parameter.

  3. It is a new theme that will help the unitholders.

Value Fund –

  • These are the value investment style where fund managers can invest in any market cap where they find good future value in one theme or sector as well as company level. The fund we are suggesting to invest in the category is

IDFC Sterling Value fund

  1. Stock selection and theme selection are the keys.
  2. At present holding around 80% in mid and small-cap segment.

  3. The mid and small-cap which were nonperformer fund managers had found value and hold.

  4. Flexibility and stock selection are the keys.

So, from this list of top equity mutual funds, have you found a fund that matches your desire to invest? If yes so you can easily invest in these Mutual Funds via GEPL Mutual Funds App Click here to claim your account and click here to learn more about Mutual Funds

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