Top Equity Mutual Funds in India (2025)
Equity mutual funds invest mainly in company stocks to capture growth opportunities and deliver higher returns. These funds come in different forms, such as large-cap equity funds, mid-cap equity funds, diversified equity funds, and tax-saving equity mutual funds (ELSS). This article explores the top equity funds, their features, advantages, risks, and factors to consider before investing.
List of Top Equity Mutual Funds in India 2025
Here is a comprehensive equity mutual fund list of India for 2025:
| Name | Sub Category | AUM (Rs. in cr.) | Expense Ratio (%) | CAGR 3Y (%) | CAGR 5Y (%) |
|---|---|---|---|---|---|
| Quant Small Cap Fund | Small Cap Fund | 22,832.42 | 0.68 | 20.58 | 48.26 |
| Quant Infrastructure Fund | Sectoral Fund - Infrastructure | 2,913.62 | 0.75 | 19.17 | 41.74 |
| ICICI Pru Commodities Fund | Thematic Fund | 2,390.54 | 1.05 | 16.49 | 37.79 |
| Quant ELSS Tax Saver Fund | Equity Linked Savings Scheme (ELSS) | 9,486.28 | 0.5 | 14.91 | 37.07 |
| Quant Flexi Cap Fund | Flexi Cap Fund | 6,188.79 | 0.61 | 17.41 | 36.69 |
| Nippon India Small Cap Fund | Small Cap Fund | 50,826.29 | 0.74 | 20.67 | 36.55 |
| Quant Mid Cap Fund | Mid Cap Fund | 7,615.71 | 0.62 | 19.75 | 36.13 |
| Bandhan Small Cap Fund | Small Cap Fund | 8,474.84 | 0.46 | 24.56 | 35.48 |
| ICICI Pru Infrastructure Fund | Sectoral Fund - Infrastructure | 6,886.49 | 1.16 | 28.31 | 34.91 |
| Bandhan Infrastructure Fund | Sectoral Fund - Infrastructure | 1,399.72 | 0.87 | 25.63 | 34.50 |
Disclaimer: Please note that the above table is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.
Note: The data on the list of the best equity mutual funds is from the 4th September 2025. This data is derived from the Tickertape Mutual Funds Screener.
- Plan: Growth
- Category: Equity
- 5Y CAGR: Sorted from Highest to Lowest
🚀 Pro Tip: You can use Tickertape’s Mutual Fund Screener to research and evaluate funds with over 50+ pre-loaded filters and parameters.
Overview of Best-Performing Equity Funds
Quant Small Cap Fund
Quant Small Cap Fund invests in smaller companies with high growth potential. It actively manages a concentrated portfolio, aiming to capture opportunities in emerging businesses across diverse sectors.
ICICI Pru Infrastructure Fund
ICICI Prudential Infrastructure Fund focuses on companies involved in construction, energy, transport, and utilities. It invests across infrastructure-related businesses, seeking to benefit from India’s long-term development and capital expenditure.
Motilal Oswal Midcap Fund
Motilal Oswal Midcap Fund targets mid-sized companies with strong growth prospects. It emphasises quality businesses in the mid-cap segment that can scale up and deliver long-term value for investors.
Quant Infrastructure Fund
Quant Infrastructure Fund invests in companies engaged in infrastructure development, including construction, energy, transport, and allied sectors. It follows active management to capture growth opportunities within India’s expanding infrastructure space.
Bandhan Infrastructure Fund
Bandhan Infrastructure Fund focuses on businesses linked to infrastructure growth, such as power, transport, and engineering. The scheme seeks opportunities from India’s rising capital expenditure and government-led development programs.
Nippon India Small Cap Fund
Nippon India Small Cap Fund invests in smaller companies across sectors. It aims to capture growth potential from emerging businesses while managing risks associated with high volatility in small-cap stocks.
HDFC Infrastructure Fund
HDFC Infrastructure Fund invests in companies from infrastructure-related industries such as energy, transport, and construction. The fund is positioned to benefit from India’s rising infrastructure spending and long-term growth story.
DSP India T.I.G.E.R Fund
DSP India T.I.G.E.R (The Infrastructure Growth and Economic Reforms) Fund invests in companies driving India’s infrastructure and economic reforms. It targets opportunities created by policy changes and development initiatives.
Franklin Build India Fund
Franklin Build India Fund focuses on sectors linked to infrastructure development, including energy, construction, and transport. It invests in businesses positioned to benefit from India’s long-term industrial and economic growth.
Bandhan Small Cap Fund
Bandhan Small Cap Fund invests in small-cap companies across industries. It aims to identify emerging businesses with strong growth potential, while balancing opportunities and risks typical of the small-cap segment.
What is an Equity Mutual Fund?
An equity mutual fund is a type of mutual fund that invests primarily in shares of listed companies. As per SEBI rules, at least 65% of the assets must be invested in equities or equity-related instruments. These funds are designed to capitalise on opportunities in the stock market by pooling money from investors and allocating it across various companies and sectors.
There are many types of funds, such as large-cap equity funds, mid-cap equity funds, and diversified equity funds. Some, like tax-saving equity mutual funds (ELSS), also give tax benefits under Section 80C. Investors can choose between options like growth option equity funds, where profits are reinvested, or dividend options, where payouts are made.
Taxation on Equity Mutual Funds in India
Equity mutual funds are taxed based on how long the units are held. The Union Budget 2024 introduced revised tax rules for equity schemes.
| Capital Gains Type | Holding Period | Tax Rate |
| Short-Term Capital Gains (STCG) | Less than 12 months | 20% |
| Long-Term Capital Gains (LTCG) | More than 12 months | 12.50% |
This tax structure applies uniformly across categories like large-cap equity funds, mid-cap equity funds, long-term equity funds, and tax-saving equity mutual funds (ELSS).
How to Invest in Equity Mutual Funds?
You can easily start to invest in equity mutual funds by following these steps:
- To invest in equity mutual funds in India, you can visit an equity investment platform such as smallcase.
- The next step is to research and identify the best equity mutual funds that match your investment thesis. Tools like the Tickertape Mutual Fund Screener can help you filter and compare funds based on parameters such as equity mutual fund performance, expense ratio, and fund size.
- Once you shortlist the funds, visit smallcase, log in, and search for the fund by name. You can then choose the investment mode, either a one-time lump sum or a SIP in equity funds, and complete the process.
Benefits of Investing in Equity Mutual Funds
- Diversification for Risk Control: Equity mutual funds invest in many companies across sectors. These diversified equity funds mitigate risk by diversifying the portfolio and reducing the impact of one stock’s poor performance in a portfolio.
- Active Portfolio Management: One of the equity mutual fund advantages is that they are actively managed. Fund managers track markets, study company performance, and adjust holdings. This strategy helps schemes respond to changing conditions.
- Tax Efficiency: Some schemes, like tax-saving equity mutual funds (ELSS), provide tax benefits under Section 80C. Long-term equity funds also enjoy lower capital gains tax rates, helping improve overall returns.
- Transparency and Regular Updates: Fund houses publish reports on equity mutual fund performance, holdings, and costs. This transparency allows investors to compare portfolios, review strategies, and stay updated about their equity mutual fund schemes.
Risks of Investing in Equity Mutual Funds
- Market Fluctuations: The value of equity mutual funds changes with stock market movements. Economic slowdowns, policy changes, or global events can affect equity fund returns, sometimes leading to short-term losses.
- Liquidity Constraints in Smaller Companies: Funds that invest in mid- or small-cap companies can face liquidity challenges. During volatile periods, buying or selling these shares may be challenging, which can affect short-term fund valuations.
- Performance Cyclicality: Equity mutual fund performance often moves in cycles. A fund that does well in one phase may not sustain the same results in the next, since markets and sectors shift over time.
- Economic and Policy Dependence: Equity fund returns often reflect the state of the broader economy. Factors such as interest rate changes, tax rules, or budget decisions can significantly impact how these funds perform.
Factors to Consider Before Investing in Equity Mutual Funds
- Investment Horizon: Since stock markets move in cycles, the time horizon influences how much investors experience both gains and downturns. So investors should keep this aspect in mind when reviewing equity mutual funds.
- Risk Tolerance: Different equity categories behave differently. Understanding these variations may help investors interpret potential outcomes.
- Fund Costs: Equity fund exit load and expense ratios directly affect net returns. Even a small difference in cost may influence overall equity fund performance, especially when measured over many years.
- Market Trends: Stock markets go through periods of growth and correction. Recognising these cycles can help investors with equity fund risk analysis.
- Transparency and Ratings: Fund houses disclose portfolio details, performance, and expenses. Investors can utilise tools to review equity mutual fund ratings, and comparing equity fund portfolios helps assess how a scheme has performed relative to its peers.
Who Should Invest in the Equity Mutual Funds in India?
- Market Participants Seeking Diversification: Equity funds provide exposure across companies and industries. Those looking to diversify beyond single stocks may find these schemes structured to mitigate risk within the equity space.
- Individuals Tracking Equity Performance: Some investors actively monitor stock markets and use equity mutual fund performance data to compare schemes. These funds offer a structured way to participate without directly managing individual shares.
- Tax-Conscious Investors: Schemes like tax-saving equity mutual funds (ELSS) fall under Section 80C benefits. This makes them relevant for individuals who seek tax advantages alongside exposure to equities.
- Beginners Exploring Equities: An equity fund for beginners provides access to stock-based investments under professional management, offering a way to learn how equities perform over time.
To Wrap it Up..
Equity mutual funds are one of the most widely known mutual fund categories in India. They invest in listed companies across different market segments and give exposure to stock market growth. These schemes may offer long-term growth opportunities, but equity mutual fund performance depends on market trends, economic cycles, and fund management. Some may appear as best performing equity funds during certain periods, but past performance does not guarantee future results. That’s why it is important to analyse the features, risks, costs, and taxation of equity mutual funds and also consult a financial advisor before making any equity fund investment decision.
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Frequently Asked Questions Equity Mutual Funds
An equity mutual fund invests mainly in company shares. At least 65% of its portfolio goes into equities, while the rest may be held in debt or money market instruments.
The types of equity mutual funds include large-cap equity funds, mid-cap equity funds, small-cap funds, diversified equity funds, and tax-saving equity mutual funds (ELSS).
In growth option equity funds, profits are reinvested into the scheme instead of being paid out as dividends. This helps the investment grow over time through compounding.
It depends on various factors such as the investor’s risk comfort, financial goals, and time horizon. Equity funds provide diversification and professional management, but returns may vary with market conditions.
Returns from equity mutual funds change with market conditions and fund performance. Checking historical performance helps understand trends and come up with a better equity fund investment strategy. However, actual results depend on how markets and companies perform in the future.
There is no fixed “right time” to invest in equity mutual funds. Since these funds are market-linked, their performance depends on economic cycles and stock movements.
Most equity mutual funds do not have a lock-in period, so investors can redeem units anytime. The exception is tax-saving equity mutual funds (ELSS), which come with a three-year lock-in under Section 80C.
Investors can use tools like Tickertape to analyse different schemes by checking performance, expense ratio, and portfolio details. This may help in comparing high-return equity funds with peers and reviewing equity fund returns for 2025.
