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Best Equity Mutual Funds for 2022

  • Akshatha Sajumon
  • 07 Feb
  • 11 minutes

Mutual Funds are becoming a popular investment avenue, especially for the new age investors across the country. The AUM of the mutual fund industry has seen a tremendous growth of around 17 percent. Even in this pandemic, where financial markets show signs of recovery, mutual funds have dominated the investment segment. More and more investors are recognizing the benefits of mutual funds and channeling their funds into different mutual fund schemes.

If you are looking to invest in the year 2021, here is a list of the best mutual funds under various categories.

Best Large Cap Mutual Funds

Large-cap mutual funds are funds that invest most of their corpus in companies with large market capitalisation. Investors looking for stable and sustainable returns with comparatively lesser risks can invest in such funds. The best large-cap funds for 2021 are as follows:

  • Axis Bluechip fund

Axis Bluechip fund is one of the top bluechip funds in the country. Axis bluechip fund invests in the blue-chip companies of India that are listed on the stock market. This fund has a diversified portfolio consisting of equity and equity-related instruments of large-cap companies. Investors looking to invest in bluechip companies can select this fund for long term wealth generation. 

Fund Name Category Minimum lump sum amount Fund Manager 
Axis Bluechip Fund Large Cap Rs. 5000/- Shreyas Devalkar

Hitesh Das

 

  • ICICI Prudential Blue Chip

This fund is a leading mutual fund scheme in the large-cap space. Investors looking for long term wealth appreciation can invest in this fund through a lump sum or a SIP route.  This fund from ICICI Prudential AMC has an AUM of more than 26000 crore rupees. The fund finds investment opportunities from the country’s economic growth, its structural changes by investing in equity and related securities. When it comes to returns, it has been a consistent performer and given returns around 15 percent since its inception.

Fund Name Category Minimum lump sum amount Fund Manager 
ICICI Pru Bluechip Fund Large Cap Rs. 100/- Rajat Chandak

Priyanka Khandelwal

 

Best Multi-Cap Mutual Funds

Multi cap mutual funds are funds that invest across market capitalisations. In other words, their portfolios have stocks of large-cap, mid-cap and small-cap companies. Investors looking for a diversified portfolio and less risk than a mid-cap or small-cap can invest in these funds. Here are the best multi-cap funds to invest in 2021:

  • UTI Equity Fund

This fund is from a multi-cap category. It invests across large, mid and small-cap companies focussing on a few selected sectors. UTI AMC’s fund has been a great performer in its category for the past 3 years, with returns of more than 14.5 percent in the same period. The fund size has been increasing every year and is around 15000 crore rupees. The fund has given consistent returns of about 16 % in the last five years. 

Fund Name Category Minimum lump sum amount Fund Manager 
UTI Equity fund Multicap Rs. 5000/- Ajay Tyagi

 

  • ICICI Prudential Large and Mid Cap Fund

As the name suggests, this scheme invests in equities of large and mid-cap companies. It has been more than ten years since this scheme was launched, and the fund size is around 2800 crores rupees. Investors looking to invest in multi-cap space can invest in this scheme for decent returns. 

Fund Name Category Minimum lump sum amount Fund Manager 
ICICI Pru Large & Mid Cap Fund Multicap Rs. 5000/- Sankaran Naren

Priyanka Khandelwal

 

Best ELSS or Tax Saver Mutual Funds 

Equity Linked Savings Scheme (ELSS) or a tax saver fund is a diversified equity scheme that offers tax benefits. Investments in an ELSS fund are eligible for the tax deduction of up to Rs. 1,50,000 under the section 80C of Income Tax Act, 1961. If you are looking to take the tax benefit, here are the best tax saver funds to invest:

  • Axis Long Term Equity Fund

Axis long term equity fund belongs to an ELSS (Equity Linked Savings Scheme) category. The fund has dual benefits. It gives an investor exposure in the equity markets, and the investment amount is eligible for the tax deduction under section 80C of the Income Tax Act. Thus, investors who want to avail the tax deduction and invest in equity can start a SIP in this scheme. The maximum amount of deduction available u/s 80C is Rs.1,50,000/-. An important thing to note here is that these funds that offer the tax benefit have a mandatory lock-in of 3 years i.e. investors cannot redeem their investments before the end of 3 years from the investment date.

Fund Name Category Minimum lump sum amount Fund Manager 
Axis Long Term Equity Fund ELSS Rs. 500/- Jinesh Gopani

 

  • ICICI Prudential Long Term Equity Fund

This fund from ICICI Prudential AMC is also from the ELSS or Tax saver category. The AUM of this fund is around 8000 crores rupees. The three- year returns of the fund have beaten the category average returns. The fund has given handsome returns of about 15 percent since the inception. Mr Sankaran Naren is the fund manager of this scheme.

Fund Name Category Minimum lump sum amount Fund Manager 
ICICI Pru Long Term Equity fund ELSS Rs. 500/- Sankaran Naren

Harish Bihani

 

  • ABSL Tax Relief 96 Fund

This is an equity mutual fund scheme started by Aditya Birla Sun Life AMC. It has been more than 10 years since this scheme was launched. This fund falls in the ELSS (Equity Linked Savings Scheme) category. Investors who wish to take exposure in equities and save tax can invest in this scheme. The investment can be made in a lump sum manner, or one can go for a SIP route as well. This fund has given tremendous returns over the years. The average returns of the past 5 years have been around 14 percent.

Fund Name Category Minimum lump sum amount Fund Manager 
ABSL Tax Relief 96 Fund ELSS Rs. 500/- Ajay Garg

 

Best Equity Large and Mid Cap Mutual Funds

The Equity Large and Midcap mutual funds invest in a mix of large and mid-cap companies listed on the stock exchange. These funds have investments in India’s top 200 companies in terms of market capitalisation. Investors who are aggressive and have a higher risk tolerance can invest in such funds. The best mid-cap funds to invest in 2021 are:

  • Axis Mid Cap Fund

Investors looking to invest in mid-cap companies can invest in this fund. This fund is open-ended and is rated in the Moderately High-Risk category. It is one of the leading midcap funds based on returns generated. Investors can start a SIP or make a lump sum investment as low as Rs. 500 in this fund. Mr Shreyas Devalkar manages the fund.

Fund Name Category Minimum lump sum amount Fund Manager 
Axis Mid Cap Fund Large & Mid Cap Rs. 500/- Shreyas Devalkar

 

  • Motilal Oswal Large and Mid Cap Fund

This fund seeks to provide medium to long term capital appreciation by investing in large-cap and mid-cap stocks of companies listed on the stock exchange. The scheme was launched in October 2019 and has given around 26 percent returns since then.

Fund Name Category Minimum lump sum amount Fund Manager 
Motilal Oswal Large & Mid Cap Fund Large & Mid Cap Rs. 500/- Aditya Khemani

Abhiroop Mukherjee

 

  • ICICI Prudential Large and Mid Cap Fund

ICICI AMC launched this scheme in 2013. This fund invests in large and mid-cap companies. The fund has given decent returns in the past. The average returns of the last 3 years are around 11 percent. Sankaren Naren, Priyanka Khandelwal and Prakash Goel are the fund managers of this scheme.

Fund Name Category Minimum lump sum amount Fund Manager 
ICICI Pru Large & Mid Cap Fund Large & Mid Cap Rs. 5000/- Sankaren Naren

Priyanka Khandelwal

 

Best Hybrid (Moderate Risk) Mutual Funds

Hybrid Mutual funds are a category of funds that invest in more than one asset class. In most cases, they are a combination of debt and equity. Some funds may include gold or real estate. Investors seeking exposure in multi assets can invest in such funds. When it comes to moderate hybrid mutual funds, the equity portion is higher than conservative hybrid funds. Moderate hybrid funds have to allocate 40 to 60 percent of their corpus to equity or equity-related instruments and at least 20 percent in debt. These funds are known to generate higher returns at relatively high risks than the conservative hybrid funds. The best moderate risk hybrid mutual funds to invest in are as follows:

  • Mirae Asset Hybrid Equity Fund

Mirae Asset Hybrid Equity Fund has an AUM of around 4300 crores and was launched in July 2015.  It has been a consistent performer for the past 3 years. A lump sum investment of minimum Rs. 5000 can be done by the investors, and a minimum SIP amount is Rs. 1000. Mr. Sudhir, Vrijesh, Harshad and Neelesh are the fund managers of this scheme.

Fund Name Category Minimum lump sum amount Fund Manager 
Mirae Asset Hybrid Fund Hybrid

(Moderate)

Rs. 5000/- Neelesh Surana

Sudhir Kedia

  • ICICI Prudential Equity & Debt Fund

It is a hybrid scheme launched by ICICI AMC on 3rd November 1999. This scheme has given consistent returns of approximately 15 percent in the last 5 years. The AUM of this fund has grown to around 16000 crores. Investors looking to invest in moderately high-risk hybrid funds can invest in this fund for stable returns.

Fund Name Category Minimum lump sum amount Fund Manager 
ICICI Pru Equity & Debt Fund Hybrid

(Moderate)

Rs. 5000/- Sankaren Naren

Atul Patel

Nikhil Kabra

  • Axis Equity Hybrid Fund

This is a hybrid scheme that invests in a mix of equity and equity-related instruments, debt instruments and money market instruments. The fund was launched in 2018 and is managed by Mr Ashish Naik. New age investors who want to take exposure in debt and equity can invest in this fund for the long term.

Fund Name Category Minimum lump sum amount Fund Manager 
Axis Equity Hybrid Fund Hybrid

(Moderate)

Rs. 5000/-

 

Best Hybrid (Conservative Risk) Mutual Funds

Conservative Hybrid Mutual Funds are a part of the Hybrid Mutual fund category that invests in low-risk instruments such as bonds, debentures, money market instruments, and some portion in equity and equity-related instruments. They aim to outperform the average inflation rate. They do not employ their corpus to excessive risky instruments. They are known to provide regular and steady income and may provide long-term capital appreciation for little equity exposure. Here are some of the best conservative hybrid mutual funds to invest in 2021:

  • Aditya Birla Sun Life Balanced Advantage Fund

Balanced Advantage funds have gained immense popularity in recent years. A notable feature of balanced advantage funds is that they work on a dynamic asset allocation strategy. This strategy allocates higher amounts to debt when equity is overvalued and allocates higher amounts to equity when equity valuations are attractive. These hybrid funds invest in pure equity instruments, arbitrage opportunities, derivative strategies, debt and money market instruments. 

Investment through a SIP or in a lump sum manner in these funds gives investors peace of mind without worrying about the market’s volatility. Aditya Birla’s fund has been providing good returns of around 10 percent from the past 3 years.  

Fund Name Category Minimum Lump sum amount Fund Manager 
Aditya Birla Sun Life Balanced Advantage Fund Hybrid (Conservative) Rs. 100/- Vineet Maloo

Mohit Sharma

 

  • Edelweiss Balanced Advantage Fund

Edelweiss Balanced Advantage fund was launched in January 2013 and has a total AUM of around 2200 crores rupees. This scheme also works on the Dynamic Asset Allocation strategy and has given superb returns in the past few years. Investors looking to create wealth long term without taking too much risk can invest in this scheme. The fund has managed to beat the category average returns in the last five years.

Fund Name Category Minimum lump sum amount Fund Manager 
Edelweiss Balanced Advantage Fund Hybrid (Conservative) Rs. 5000/- Bhavesh Jain

Gautam Kaul

 

  • Motilal Oswal Dynamic Fund

This is a conservative hybrid fund from Motilal Oswal AMC that invests in both equity and debt. The fund was launched in September 2016 and has given good returns in the last 3 years. Mr Akash and Gautam are the fund managers managing this scheme.

Fund Name Category Minimum lump sum amount Fund Manager 
Motilal Oswal Dynamic Fund Hybrid (Conservative) Rs. 500/- Akash Singhania

Snigdha Sharma

 

These were some of the best equity funds across various categories that you can consider investing in 2022. But, you should keep in mind that investments in equities are subject to risks and you should make sure you have the right risk appetite before venturing into equity mutual funds. Also, equity mutual funds offer good returns when you remain invested over longer time frames.

You can invest in any of these funds on the Fisdom App, which could be downloaded from the links at the bottom of the page.

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Akshatha Sajumon

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