Best Equity Mutual Funds to Invest in 2018 – Top Performing Mutual Funds


If you are looking at this post, then you must be interested in knowing more about best performing Equity mutual funds.

Based on your risk profile, you should allocate a portion of your investment amount into Equities. Mutual funds is the best route for retail investors to invest in Equities. 

For accumulating sizable corpus in the long run, you should invest in GROWTH option of the mutual funds. It is also better to invest via SIP option (systematic investment plan i.e. periodic investment).

Based on the historic performance, please see below the list of Best performing Equity Mutual Funds. You can consider these funds for your investment.  However, please note that the past performance is not guaranteed for future performance, but it is good indicator of how the fund has performed in the past.

From 1st Feb 2017, New Central KYC is process must for new Mutual Fund Investors. Read more in my post. 

Top performing Large Cap Equity Funds

Annualised return (%)
1 yr 3yr 5yr 10 yr
Axis BlueChip (Previously Axis Equity) 23.35 13.04 18.08
ICICI Pru BlueChip fund (earlier ICICI Pru Focussed BlueChip Equity) 9.25 10.03 16.95 15.81
Reliance Large Cap (earier Reliance Top 200) 10.79 14.42 21.21
Canara Robecco BlueChip Equity (previously Canara Robecco Large cap + Regular) 12.99 10.57 16
Motilal Oswal Focussed 25 (earlier Motilal Oswal MOST Focussed 25) 9.02 10.83 19.4
SBI BlueChip Fund 7.32 10.36 19.28
IndiaBulls BlueChip 10.8 12.9 15.61
Invesco India Large Cap (previosuly Invesco India Business Leaders 12 10.69 17.89
Aditya Birla SL FrontLine Equity 4.77 8.79 16.97 15.08
HDFC Top 100 (earlier HDFC Top 200) 2.82 8.02 15.59 14.21
Updated: 9th July 2018


Top performing Large &  Mid Cap Equity Funds


Equity: Large & MidCap Annualised return (%)
1 yr 3yr 5yr 10 yr
Sundaram Large & MidCap (Sundaram Equity Multiplier) 13.29 13.01 20.92
Invesco India Growth Opportunities (earlier Invesco India Growth) 15.85 12.61 20.98
Edelweiss Large & midcap (earlier Edelweiss Equity Opportunities) 13.29 10.68 18.42
Canara Robecco Emerging Equities 6.49 14.58 31.11 20.54
Mirae Asset Emerging BlueChip 3.86 16.85 31.45
LIC MF Large & MidCap (LIC MF Lidcap) 7.6 13.91
Franklin India Equity Advantange (earlier Franklin India FLexiCap 7.11 7.46 18.9 15.09
L&T Large and MidCap (L&T India Special Situations) 3 9.21 18.42 14.93
SBI Large & MidCap (SBI Magnum Multiplier) 3.72 8.07 19.44 14.68
Aditya Birla SL Equity Advantange( Aditya Birla SL Advantage) 3.37 10.76 22.31 14.22
Updated: 9th July 2018




Top performing Mid Cap Equity Funds

Equity: MidCap Annualised return (%)
1 yr 3yr 5yr 10 yr
HDFC MidCap Opportunities 5.14 13.41 26.16 21.01
Franklin India Prima 4.58 11.73 24.27 18.99
DSP Blackrock Midcap (previously DSPBR Small and Midcap) 3.07 12.85 25.61 18.82
L&T Midcap 3.7 15.72 29.21 18.78
Kotak Emerging Equity 4.18 14.21 28.34
ICICI Pru Midcap 5.72 10.67 28.06
Edelweiss Midcap (Edelweiss Mid & Small cap)
Sundaram MidCap (Sundaram Select MidCap) 2.26 12.03 25.86
Axis Midcap 17.1 10.77 24.74
Invesco India Mid Cap 8.77 11.89 26.1
Updated: 9th July 2018



Top performing Small  Cap Equity Funds


Equity: Small Cap Annualised return (%)
1 yr 3yr 5yr 10 yr
Reliance Small Cap 8.09 20.19 36.4
SBI Small Cap (earlier SBI Small & Mid Cap) 13.85 18.62 34.55
HDFC Small Cap 14.97 18.62 23.35 17.4
L&T Emerging Businesses 6.62 22.09
Franklin India Smaller Companies 2.91 13.47 28.04 20.23
Aditya Birla SL Small Cap (earlier Aditya Birla SL Mid and Small Cap) 1.55 15.81 25.75 17.57
DSP BlackRock Small Cap (earlier DSPBR MicroCap) -8.07 11.34 30.33 20.8
Updated: 9th July 2018



Top performing MultiCap Equity Funds

Equity: MultiCap Annualised return (%)
1 yr 3yr 5yr 10 yr
Axis Focussed 25 21.54 16.27 20.65
Motilal Oswal Multicap 35 (earleir Motilal Oswal MOST Focussed Multipcap 35) 9.47 14.14
UTI Equity 17.64 11.2 18.46
Edelweiss Multicap (Edelweiss Economic Resurgence) 14.13 12.36
Invesco India Multicap (earlier Invesco India Mid & Small Cap) 7.2 10.22 23.91 19.38
Mirae Asset India Equity (earlier Mirae Asset India Opportinities) 8.44 12.1 21.24 18.21
SBI Focussed Equity (earlier SBI Emerging business) 15.66 13.35 19.94 17.92
IDFC MultiCap (earlier IDFC premier Equity) 5.13 8.07 20.11 17.86
Reliance Focussed Equity (earier Reliance Mid & Small cap) 2.55 11.82 26.03
Aditya Birla SL Equity 6.11 13.93 23.36
Updated: 9th July 2018


Top performing Value Oriented Equity Funds

Equity: Value Oriented Annualised return (%)
1 yr 3yr 5yr 10 yr
Kotak India EQ Contra (earlier Kotak Classic Equity) 18.91 13.11 18.6
UTI Value Opportunities (earlier UTI Opportunities) 11.62 7.74 14.57
Tata Equity PE Fund 10.36 16.06 26.26
Invesco India Contra Fund 16.55 15.23 26.19
Reliance Value (earlier Reliance Regular Savings Equity) 8.83 10.07 19.44
Aditya Birla SL Pure Value 4.4 13.24 27.04 20.62
IDFC Sterling Value (earlier IDFC Srerling Equity) 8.21 13.14 22.29 20.09
iCICI Pru Value Discovery 6.71 7.15 22.46 19.76
L&T India Value 2.08 13.24 25.6
Updated: 9th July 2018


Note: Following the new SEBI classification requirements, many mutual funds have changed their name as well as mandate. Many funds have been merged as well. So, the past performance may not be representative of the new mandate.


Read – New Central KYC process must for new Mutual Fund Investors.

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59 Replies to “Best Equity Mutual Funds to Invest in 2018 – Top Performing Mutual Funds”

  1. Hi Vivek,

    Happy New year!!!!!!!!!!!

    I was following your suggestions and referring wealth18 site for my investment portfolio. I am 33 years old and earning 80k P.M. As of now no savings. very recently started savings. My whole goal is wealth creation and can bear moderate risk and the duration is 10-15 years if time permits or 10 years min.
    My savings are like below.

    PF is around 1 lakh, mine and company contribution and PPF is 50k. Had Term insurance fro 1 crore.

    And, I am investing in the following funds.

    Axis Long Term Equity Fund —- 3k P.M —-28th every month
    Birla SL MNC Fund —– 3k P.M —— 15th every month
    UTI MNC Fund —– 2k P.M ——- 25th every month
    Franklin High Growth Companies fund —— 2k P.M ——– 20th every month

    I can invest more 10k. Can you please suggest some more funds and suggest correct, if needed in the existing portfolio.

    1. Hi Vijay, The funds selected are good funds and you can consider to continue these investments.

      For additional investment, you can add 2-3 funds from the Small/Mid cap funds (as listed in the post above).

      Apologies for the delayed response.

  2. Dear Sir,

    I have been investing in the following funds through SIPs for the past 3 years,

    Axis Equity Fund(Growth) –
    HDFC Top 200(G)-
    IDFC Premier Equity(G)-
    HDFC Mid-cap opp(G)-

    I have discontinued investing in HDFC-Prudence.Recently i have started investing in ICICI pro-Value discovery fund with a SIP of Rs 5000/-.
    Could you please let me know if I need to reshuffle my portfolio, if so by which funds or should I keep investing in the same funds and can i scale-up my investments in the existing funds as i am planning to do so.

    Please let me know your suggestions on my mail, so that i can take my decisions at the earliest.


  3. Dear Vivek,
    I need near about 40 lakh in 10 year. I can invest Rs. 15000p.m. In SIP. So can u please suggest in this regard. I want to invest in diversified equity fund. Please help me.

    1. Hi, You can select a combination of large, mid/small and diversified funds.

      Pick 2 -3 funds from each category and start your SIP. May be 5000 in large / diversified, 10000 in MId/small.

  4. Hi Vivek,

    I have been reading your articles for the last few years and have found them quite useful.

    I am an NRI for 20 years and I have few Indian company equity shares which I am holding for more than 5 years. I have never filed income tax returns as I do not have any taxable income in India.

    I have a question now because of the recent amendment to IT Act Section 139 (1) which requires even those who have only long term capital gains on sale of equity shares to file tax return effective 1-April-2017.

    Is this amendment applicable to NRI as well? If I sell all my shares before 31-March-2016 I need not file tax return in 2017. Am I right?

    Thanks in advance for your reply. Only a few days left for 31-Mar-2016.

    1. Hi Eva, Sorry for the delayed reply.

      In Budget 2016, even your income before claiming any exemption of long-term capital gain exceeds Rs 2.50 lakh you will have to file income tax returns.

      So if your Capital gain amount + other income in India is less than Rs 2.5 lakhs, then you dnot need to file the returns.

  5. Dear vivek ji,

    I have not make any provision for tax saving and now for taxation purpose i have to invest Rs. 80k pls guide on the same .

  6. Hello Vivek,

    Thanks for helping by answering all the queries of new investors like me. I have one query here – People say that they lost money investing in Mutual Funds ( both ELSS and non – ELSS ). Is it true that such situation comes and how should I be careful before investing on Mutual Funds ?

    1. Hi Raj, To be honest Investment in Shares as well as Equity funds have inherent risk as the market may go up & down.
      However at the same time, Equity investments via Mutual funds give some advantage of using professionals to manage your money. and if you are investing for long term, then the chances of getting positive returns are higher.

      For e.g If you have invested in ELSS fund for last 5 years, then none of the funds have given negative returns. the best fund has given 20% return (annually) and worst fund has given 7.2% (annual)
      For e.g If you have invested in Large Cap Equity funds for last 5 years, then none of the funds have given negative returns. the best fund has given 15% return (annually) and worst fund has given 3% (annual)

  7. i invest in Axis Long Term Equity Fund

    further i want to invest in any mutual fund SIP please suggest where i should invest to get better benefit / growth.

  8. Hi Vivek,

    It seems SBI Small & Midcap Fund is not available for SIP. I have been trying for quite sometime (since your last recommendation to me). Any thoughts…?


  9. Hi Vivek,

    I have a saving of 10 lakhs which I need to invest for 3-5 years as I do not need the money as of now.

    Request your advice on the type of funds I can go for and % distribution of my money in the funds. Ideally looking for something that can give me around 20% annualised returns.

    Kindest regards.

    1. Hi, If your horizon is 3-5 years, you should consider balanced funds or large cap equity funds. However, the chances of getting 20% returns are minimal. You can expect 12-15% return

  10. Thanks Vivek.

    What should be the percentage distribution of my money in large cap and balanced.
    How many funds should I invest in.
    Which funds do you recommend.

    Request your advice please.

    1. You can consider allocating 40% in Large cap & 60% in Balanced.

      Some best performing large cap funds are given in the post above ( please select 2-3 funds)

      Some best performing Balanced funds are:
      SBI Magnum Balanced Fund
      HDFC Balanced Fung
      Tata Balanced Fund

      1. Thanks for your advice.
        1. Please advice if these should be Lumpsum investments.
        (400000 in large cap and 600000 in balanced )

        2. Please advice if I need to make changes or add anything to the below portfolio as I have savings from my salary which can be invested.

        Large Cap:
        SBI Blue chip: 2000 pm

        Small mid cap
        Birla MNC fund 2000
        Sbi magnum midcap 2000
        Franklin india smaller cos 1500

        Axis LTE 2500
        Birla tax relief 96 2500
        Reliance tax saver 2500

        Reliance liquid fund 50000
        HDFC short term fund 100000
        Axis fixed income opportunities fund 100000

        Do you advise me to start any other SIP with balanced and diversified funds??

        Please advise.

        1. Hi Kanta, As you have the investible money now, you can go with lumpsum. But the risk is that you are investing all money at once.
          You also told earlier that you are looking only for 3-5 year time horizon for your investment.

          However, if you are looking for longer term 7-10-15 years, then you can consider investing in Small/Midcap funds as well.

          You need to be clear about your investment horizon.

          1. Thanks Vivek.

            I have also been reading about MIP funds. Do you advise they are a better option for small term as compared to large cap funds.

          2. HiKanta, the objective of MIP funds are to generate regular income through investments in fixed income securities so as to pay regular dividend to investors. However monthly payment is not gauranteed.

            Also, there are 2 tyoe of MIP – Aggresive and Conservative. Aggresive MIP funds have 25-30% Equity investments which may be volatile in short term.

          3. I do not suggest a Lumpsum Investment. What you can do is to invest in a Debt fund like Birla Sun Life Treasury Optimizer fund or Birla SL Dynamic Bond fund and setup STP. Fund House is your choice.

            To setup STP you can do from camsonline website. Let me know if you need any further advice.

  11. Hi,
    Based on your recommendation last year I have started SIP in Axis Long Term Equity MF (G). Now i want to invest in another funds particularly for retirement. Could u pls suggest where to invest – NPS or any retirement MF.

    1. Hi Akhil,

      I personally donot like NPS and retirement MF as they have similar features as normal mutual funds but they have withdrawal restrictions. I would rather consider normal equity mutual funds for long term (retirement).

  12. Hi Vivek,

    I have been following you articles for some time.

    I have a question about your Best Top Performing equity mutual funds to invest article. I am a new investor so you might find it stupid.

    I am investing in HDFC Top 200 Mutual fund and ICICI Prudential Dynamic Plan – Growth via SIP. Can you guide me whether these mutual funds are good or i need to go for some other Mutual Fund.

    Also can you guide me best SIP Mutual Fund where I can also get the Tax benefit. I am not sure whether above SIP has some tax benefit or not.


    1. Hi Pradeep,

      1) For tax benefit (deduction u/s 80C) you need to invest in ELSS mutual funds. See some of the best performing ELSS funds:

      2) Regarding other funds, both HDFC Top 200 Mutual fund and ICICI Prudential Dynamic Plan – Growth are not performing in line with other peer performance. You may consider making new investments in other funds. See the post below

  13. Dear Vivek ji,

    I am bala.aged 33.A moderate to high risk investor.
    Need your suggestion on the mutual funds for retirement Plan. Can invest 40000 per month for the next 17 years.
    Please advise on the funds and how much amount should be allocated to each fund.


    1. Hi Bala, As your horizon is long term, you can consider allocating

      Equity funds – 70%
      Debt funds – 20%
      Gold – 10%

      In Equity, you can select
      Small / Midcap – 40%
      Large Cap – 10%
      Diversified – 10%
      Sector / Thematic – 10%

  14. Hi Vivek,

    I’m 26 years old, this is my first stint at investing.Monthly I can invest about 2000 and would like to increase it as I get comfortable with it. I would like to opt for an SIP mode of investment for 15-20 years, where it should have an option of opting out at any time(in case of emergencies).

    What return can I expect in 15-20 years? Please suggest me some plans. Thank you.

    1. Hi Dhana,

      For all SIP, you can stop anytime. that’s not a problem.

      To start with, you can consider investing in large cap funds:
      SBI Blue Chip Fund (G)
      Franklin India Oppor. (G)

  15. Hi Sir,

    I am 33 years old. My investment portfolio looks like this, PF is about 80k P.A, PPF 1.5L P.A. And also had into stocks with long term horizon. My goal is to build healthy/diversified port polio. Below is the MFs investment: Recently switched all of my MFS to direct method from regular for good returns. Please advice me on my mutual fund port polio any changes/adjustments/modification required. Eagerly waiting for your reply……….


    Axis Long Term Equity Direct – 3k

    Large cap

    Birla SL MNC Direct-G – 3k
    UTI MNC Direct-G -2k
    Franklin India High Grth Companies Direct-G -2k

    Midcap Cap

    SBU Magnum Midcap Direct -1500
    BNP Paribas midcap regular – 3k

    Small Cap

    DSPBR Micro Cap Direct-G – 2k
    Reliance Small Cap Direct-G – 1500
    Franklin India Smaller Companies Direct-G – 1500


    SBI Pharma Direct-G 1500

  16. Hi Vivek,

    Thank you for the wonderful article.

    I would like to invest 50K PM in SIP for long term to meet my childrens educational expenses from 7th to 10th years from now.

    I have initiated the below SIPS each 5K per month

    SBI Blue Chip Fund
    Frankline Prima Plus Fund
    HDFC Balanced Fund Growth Option
    BSL Frontline quity
    UTI Midcap
    Frankline India Smaller Companies Fund
    SBI Midcap

    Please suggest if the above is fine

    Also please suggest remaining 15K per month..which other funds to be chosen

    Many thanks in advance

  17. hello sir… i want to invest 100000 for my son future education who is 3 year old.can you suggest good mutual fund or stock for say 15 year investment time per my friend advice i have just invested lumsum 50000 in Br micro cap fund.

  18. I am retiring next 4 months and currently have an amount of 5,00,000. Is it appropriate to invest in balanced fund? if yes, which funds can u suggest and time frame. Similarly, pls suggest few short term or liquid funds where I can park some funds.

    1. Hi Pratibha,

      What is your retirement age and what is yoru urpose of investment – i.e to get monthly money for expenses etc or just to invest for children’s future etc.

      Depending on the purpose, I can suggest accordingly.

  19. hi….I am a newbie in this field…I have an annual pay package of 7.5 lacs and wish to invest since I want to save my taxes.In hand I get like 51k after all the deductions.Its only one month since i have started working.I am 22 year old.Can you please advise in this regard Sir.

    1. Hi Priya,

      You need to decide your investments based on various factors – primarily your goals, time horizon, risk apetite etc.

      It is always good to start investment through Mutual funds via SIP to build a long term portfolio.

      How much money you are willing to save each month?

  20. Hello,

    I will be getting a lumpsum amount of 9 Lakh ruppes in october and I am planning to invest all of the amoung in the following Mutual Funds in these proportions: My target is to gain 20-25% profit in 1-2 years. I have chosen these based on their past performance. Please let me know if my investment makes sense and kindly suggest more Mutual Funds if necessary with good prospects.

    DSP BlackRock Micro Cap Fund Direct Plan (G) – 2,00,000
    Franklin India Smaller Companies Fund Direct Plan (G) – 1,00,000
    HDFC Mid-Cap Opportunities Fund Direct Plan (G) – 1,00,000
    ICICI Prudential Value Discovery Fund Direct Plan (G) – 1,00,000
    Mirae Asset Emerging Bluechip Fund Direct Plan (G) – 2,00,000
    SBI Blue Chip Fund Direct Plan (G) – 1,00,000
    Reliance Small Cap Fund Direct Plan (G) – 1,00,000

    Looking forward to hear back from you.

    Thanks & Regards,

    1. Hi Nirmala,

      The funds selected for performing well BUT yoru time horizon shoudl be long.

      The stock market is currently high and may not give similar returns in the short term again. When you invest in Equties, your time horizon should be long term 5-7 years. It may be possible that you will not get similar returns in next 1-2 years and there is risk.

      Also investing a large amount in lumpsum expose you to the risk of investing when market is high. If you split your investment over variosu months, then the price will be averaged.

      I suggest you to put the 9 lakh in Sweepin FD and then start monthly SIP for these funds (for approx 75K or 1 lakh a month)

  21. Hi Vivek,, I want to invest 12000 p.m. for 10 years and want accumulate approximately 30 lacs. Will it be better to invest directly in stocks through SIP rather than investing in mutual funds through SIP. Plz help.

    1. Hi Sougat, Investing is stocks via SIP still has lot of risks involved around stock selection, timing, diversification.

      For retail investors, it is suggested to invest in Mutual funds via SIP.

  22. Hi All,

    I am 24 year old, for timeframe 5 to 7 years, below are my invested funds, kindly advise for any modification. In coming years should I try with new funds or I should just increase the SIP amount.

    SBI Bluechip Direct-Growth – SIP – Rs.2000 pm
    Aditya Birla SL Top 100 Fund – Direct-Growth – SIP – Rs, 1500 pm
    Aditya Birla SL Advantage fund – Direct-Growth – SIP – Rs, 1500 pm
    L&T Emerging Businesses Direct-Growth -SIP- Rs.1000 pm
    Mirae Asset Emerging Bluechip Direct-Growth – SIP – Rs1500 pm


    1. Hi Abinas, How are your returns now? These are some of the good large cap funds. If you have a long term horizon, you should also consider adding mid cap and small cap funds. Check the details on the post above.

  23. Hi Vivek,

    I have been following your site for quite sometime and is very useful. I want to know your opinion on market timing of buying Mutual Funds. Many advise against Market Timing but the last two years have seen the indexes going high. Buying now also means to be ready for any corrections in the next couple of years and expect to hold loss values until they go up again in the coming years. Please advise.

    AK Mirle

    1. Hi, It is very difficult to time the market, particularly for small retail investors. Do you really think that a retail investor have better resources and can do better research than a fund manager (who has this as full time job). It is always easy to see the data historically and then provide any opinion, but one cannot predict future.

      If an investor is sure that market will go down, then one can short index and make who lot of money. But there is risk, what if it goes up… it is not certain.

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