You should invest in equity funds because: Why Should you Invest in Equity Mutual Funds? If you are confused and want to invest in both equity and debt, then balanced fund/aggressive hybrid funds are suitable for you.If you want to simply save tax, then ELSS is the best investment option for you.If you are an aggressive investor with a long time horizon, then you can invest in mid-cap, small-cap or sectoral funds.If you are a conservative investor, or a beginner, with a short time horizon, then you should invest in large-cap mutual funds only.Hence before you invest in the best equity mutual funds, you should ascertain your risk profile and time horizon. They generate high returns but also carry high market risk and volatility. Who Should Invest in B est Equity Mutual Funds ?Įquity funds reduce the overall risk through diversification. Since equity funds invest in stocks of companies, they carry high risk and are mostly preferred by aggressive investors. Investment Objective : Focused equity mutual funds, sectoral equity mutual funds, multi-cap equity mutual funds, fund of funds etc.ī est equity mutual funds are funds with a proven track record of outperforming the benchmark index and its peers while maintaining a low expense ratio.Market capitalisation : Large-cap, mid-cap and small-cap equity mutual funds.Management : Actively managed equity mutual funds (diversified mutual funds) and Passively managed equity mutual funds (index funds).Equity mutual funds can be broadly classified based on the following parameters: What is the best way of investing in the best equity mutual funds for 2021 ?Įquity mutual funds are mutual fund schemes that invest a minimum of 65% of their corpus in direct equities or stocks.List of the best equity mutual funds for 2021.Why should you not invest in equity mutual funds?.Who should invest in the best equity mutual funds ?.What are the best equity mutual funds ?.We will also reveal the best equity mutual funds for 2021. Today, we will understand everything about equity mutual funds. They help investors to indirectly participate in the stock market. Equity mutual funds are the most popular mutual fund type in India.