[May 2020] Best Equity Mutual Funds to Invest in 2020 – Top Performing Mutual Funds


Equity Mutual funds are one of the best investment option for long term. Over a long term, equity investments have given better returns than fixed deposit, gold etc. So as part of investment strategy, one should definitely consider some exposure to equity 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. 

Options to select

When you have decided to invest through mutual funds, you should consider selecting following options:

        • Direct option – If you are investing directly, you should select DIRECT option. You save distribution commission as the mutual fund company is not paying any commission on such mutual funds and those benefits are passed on to the investors. Normally the returns of DIRECT funds are approx 1% higher than normal funds.
        • Growth option – In this option the earnings are getting accumulated and helps to build corpus over long term.  The other options are Dividend and Dividend re-investment
        • SIP mode – This is an option to invest systematically on a periodic basis (e.g. monthly). So rather than making one time investment, you should consider investing via SIP mode. This helps to average the cost price and risk. 

Categories of Mutual Funds

There are various categories of Equity funds and you should select one / combination based on your risk profile, time horizon etc. Different type of funds available are:

Which Mutual funds should I select?

It depends on your investment objective, time frame and risk apettite. Depending on your situation, you need to create an optimal combination for yourself. You should consult your financial advisor.

Following is just an example of how you can allocate your investment in different funds based on your risk appetite.

    • Aggresive Investor:  50% in Small Cap, rest 50% in Large, Mid and Multicap
    • Moderate investor:  25% in Small Cap, 25% in Large cap, 50% in Midcap and Multiap
    • Passive Investor: 50% in Large Cap, 25% in Midcap, 25% in Multicap

Mutual Fund Performance (Historic and Year-on-Year)

In this post, I have shared various performance parameters for best mutual funds:

  • the historic performance of some of the best performing funds
  • historic returns in SIP mode.
  • the year-on-year returns

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.

I have also shared the Year by year returns for these funds – You can see that the returns are volatile, so you should have long term view. So, if any year the returns are not good, you should not panic.

Top performing Large Cap Equity Funds

Large Cap Equity Funds are mutual funds that select stocks from the largest 100 stocks listed in the Indian markets (highest market capitalization). Larger stocks are expected to be less risky whereas smaller stocks may have higher potential to grow.

Top performing Large Cap Equity Funds:

      • Axis BlueChip Fund
      • Canara Robeco Bluechip Equity
      • BNP Paribas Large Cap Fund – D (G)
      • Mirae Asset Large Cap – D (G)
      • JM Large Cap Fund – D (G)

Please check the Year-on-Year returns. This will help you to understand that returns from equity funds can be volatile

Top performing Large &  Mid Cap Equity Funds

Large & Mid Cap Equity Funds select stocks from the largest 250 stocks listed in the Indian markets (highest market capitalisation). 

Top performing Large & Mid Cap Equity Funds:

      • Axis Growth Opportunities – D (G)
      • Mirae Asset Emerging Bluechip Fund
      • Tata Large & Mid Cap Fund – Regular Plan
      • Can Robeco Emer-Equities-Direct (G)
      • Invesco Growth Opportunities – D (G)

Top performing Mid Cap Equity Funds

Mid Cap Equity Funds select stocks  from the mid cap category – stocks ranked between 100 to 250 by size  ( market capitalisation). 

Top performing Mid Cap Equity Funds:

      • Axis Mid Cap – D (G)
      • Invesco India Midcap – D (G)
      • DSP Midcap Fund
      • Mirae Asset Midcap Fund
      • Tata Midcap
      • BNP Paribas Mid Cap

Top performing Small  Cap Equity Funds

These mutual funds select stocks for investment from the small cap category, which includes all stocks except largest 250 stocks (by market capitalisation).

Top Performing Small Cap Mutual Funds:

      • Axis Small Cap
      • SBI Small Cap
      • Kotak Small Cap
      • DSP Small Cap
      • L&T Emerging Businesses Fund
      • Franklin India Smaller Companies Fund
      • Tata Small Cap

Top performing MultiCap Equity Funds

These mutual funds primarily invest in stocks selected from all the listed stocks in the Indian market (NSE/BSE).

Top Performing Multi Cap Mutual Funds:

      • Axis Multi Cap
      • Canara Robecco Equity Diversified
      • DSP Equity Fund
      • JM Multicap
      • Kotak Standard Multicap

Top performing ELSS (Tax Saving) Equity Funds

These mutual funds are equity funds for which you can claim tax deduction under section 80C. These funds have minimum lock-in for 3 years. If you have not exhausted your limit for 80C investments and interested in investing in Equity funds, you should definitely consider ELSS  funds.  Best performing ELSS Funds (Equity Linked Savings Scheme funds i.e. Tax Savings Equity Mutual Funds)

Top performing Sector / Thematic Equity Funds

These mutual funds creates a portfolio which mimics given index. So these funds are expected give similar returns as per index. Best Performing Equity Thematic or Sector Funds

Top performing Index Equity Funds

These mutual funds creates a portfolio which mimics given index. So these funds are expected give similar returns as per index.

Top Performing Index Equity Mutual Funds:

      • UTI Nifty Iundex Fund
      • Tata Index Fund
      • HDFC Index Fund
      • SBI NIFTY Index


Other Type of Equity Funds

If you are general retail investor, the above type of mutual funds should be sufficient for you. If you have already allocated funds for above fund,s you may consider these specialist funds.

  • Value Oriented Equity funds: These mutual funds invest in stocks which are undervalued. The underlying assumption is, stocks may be undervalued due to temporary factors and will provide higher returns compared to peers once valuation is at par.
  • Focussed Equity Fund: These mutual funds invest in stocks but restrict the number of stocks in the portfolio to a maximum of 30
  • Dividend Yield Fund: These mutual funds invest in stocks and follow strategy of investing in stocks which generates higher dividend yield.


Following the new SEBI classification requirements issued in 2017, 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.


  • Don’t just invest in a fund if they have performed better in last year. Select the mutual funds based on your objective, time horizon, risk apettite and funds performance.
  • Review your portfolio atleast once in 6 months.
  • If you are investing in Equity funds, be prepare for volatile returns. So you should be investing for long term (5-7 years minimum).

Related Posts


  1. 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

    • 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.

  2. 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


    • 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.

  3. 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.

    • 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.

  4. 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,

    • 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)

  5. 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.

    • 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?

  6. 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.

    • 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.

  7. 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 origin.as per my friend advice i have just invested lumsum 50000 in Br micro cap fund.

  8. 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

  9. 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

  10. 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.

    • 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)

  11. 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.


    • 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%

  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.


  13. 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.

    • 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).

  14. 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.

    • 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

      • 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.

        • 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.

          • 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.

          • 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.

          • 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.

  15. 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.

    • 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

  16. 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…?


  17. 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.

  18. 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 ?

    • 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)

  19. 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 .

  20. 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.

    • 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.

  21. 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.

    • 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.

  22. 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.


  23. 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.

    • 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.


Please enter your comment!
Please enter your name here