List of Top Equity Mutual Funds in India (2026)
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 2026
Here is a comprehensive equity mutual fund list of India for 2026:
| 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 9th June 2026. 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 are Equity Funds?
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 2026 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
- Exposure to India’s equity market: Equity mutual funds invest mainly in listed stocks across market capitalisations, sectors, and themes. India’s mutual fund industry AUM stood at ₹81.92 tn as of 30th April 2026, reflecting the scale of mutual fund participation.
- Diversification across companies: Equity funds spread investments across multiple stocks, which reduces dependence on a single company. Different categories, such as large-cap, flexi-cap, mid-cap, small-cap, sectoral, and thematic funds, offer different levels of diversification.
- Professional fund management: Equity mutual funds are managed by fund managers who study company fundamentals, market trends, valuations, risks, and portfolio allocation. This can help investors access equity markets without selecting individual stocks directly.
- SIP-based investing: Systematic Investment Plans allow investors to invest fixed amounts at regular intervals. SIP inflows stood at ₹30,954 cr in May 2026, staying above ₹30,000 cr for the third consecutive month.
- Long-term wealth creation potential: Equity mutual funds are linked to stock market performance and may support long-term capital growth. In FY26, equity-oriented mutual fund average assets under management grew 17.38% year-on-year, showing continued participation in equity schemes.
Risks of Investing in Equity Mutual Funds
- Market risk: Equity mutual funds are exposed to stock market movements. Returns can fluctuate due to earnings trends, interest rates, inflation, global events, liquidity, and investor sentiment.
- Short-term volatility: Equity funds can see sharp movements over shorter periods. In May 2026, equity mutual fund inflows fell 40% month-on-month to ₹22,907 cr, reflecting changing investor sentiment during volatile market conditions.
- Category-specific risk: Large-cap, mid-cap, small-cap, sectoral, and thematic funds carry different risk levels. Small-cap and thematic funds may show sharper volatility than diversified large-cap or flexi-cap funds.
- Fund manager and strategy risk: Actively managed funds depend on fund manager decisions, stock selection, sector allocation, and timing. Strategy underperformance can affect returns compared with benchmarks or peers.
- Expense ratio and tracking risk: Fund expenses reduce investor returns. Index funds and ETFs may also carry tracking error, where fund returns differ from the underlying benchmark.
Factors to Consider Before Investing in Equity Mutual Funds
- Investment goal and time horizon: Equity mutual funds are market-linked, so the investment horizon matters. Longer time frames may help investors ride out short-term market volatility.
- Risk profile: Different equity fund categories carry different risk levels. Large-cap funds are usually relatively more stable, while mid-cap, small-cap, sectoral, and thematic funds may see sharper fluctuations.
- Fund category and portfolio mix: Equity mutual funds can invest across large-cap, mid-cap, small-cap, flexi-cap, ELSS, sectoral, thematic, or index-based strategies. The fund category should be understood before tracking returns.
- Fund performance and consistency: Past returns can be reviewed across 1-year, 3-year, 5-year, and longer periods, along with consistency across market cycles. Past performance, however, does not guarantee future returns.
- Expense ratio and exit load: Expense ratio reduces net returns, while exit load applies if units are redeemed before a specified period. These costs should be checked before investing.
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. This explains the basic equity fund meaning for investors.
The types of equity funds include large-cap equity funds, mid-cap equity funds, small-cap funds, diversified equity funds, focused 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 and may apply across categories, including a focused equity fund.
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. Beginners may also compare the top 10 equity mutual funds only for research, not as recommendations.
Disclaimer: This information is for educational purposes only and does not constitute investment advice. Suitability depends on individual goals, risk appetite, time horizon, and financial situation.
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.
Disclaimer: Mutual fund returns are not guaranteed. Past performance is historical and does not indicate future returns. Actual returns may vary based on market conditions and fund performance.
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. Investors may consider investing based on their financial goals, risk appetite, time horizon, and asset allocation. They should also understand the tax on equity mutual funds before investing.
Disclaimer: This information is for educational purposes only and should not be treated as market timing or investment advice. Please assess your goals, risk profile, and consult a financial advisor before investing.
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. Tax treatment also differs based on the types of equity funds.
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, reviewing equity fund returns for 2025, and studying the top 10 equity mutual funds for research.
