5 best equity mutual funds to consider for year-end investment based on their past three-year returns
Equity mutual funds, known for their potential to offer high returns, are a popular choice among investors looking to diversify their portfolios. Here we shed light on the best equity mutual funds to consider investing in 2023, based on their past three-year returns. But before we proceed, let us first describe equity mutual funds.
Equity funds are mutual funds that invest in a variety of shares from different companies. They are considered high-risk investments with the goal of generating higher returns. In comparison to debt-based funds and term deposits, equity funds generally provide better returns.
However, the performance of these funds is heavily influenced by market conditions, making them inherently risky. To be classified as an equity mutual fund scheme, the fund must allocate over 60% of its total assets to equity shares of various companies. The remaining 40% can be invested in debt securities or money market instruments.
(Source: AMFI, data as on November 29) As we can see in the table above, the highest annualised return of 26.03 percent was given by Nippon India Large Cap Fund whereas the lowest return of 19.12 percent was delivered by Mahindra Manulife Large Cap Fund.
Here, we give a lowdown on the top-performing equity mutual funds: Nippon India Large Cap Fund: The fund has an AUM of 15855.03 crores and has delivered a CAGR of 15.90 percent in the last 5 years. The top holdings of the fund include HDFC Bank, ICICI Bank, Reliance Industries and State Bank Of India.
HDFC Top 100 Fund: The fund has an AUM of 25422.81 crores and has delivered a CAGR of 15.08 percent in the last 5 years. The top holdings of the fund include HDFC Bank, ICICI Bank, Reliance Industries and ITC.
ICICI Prudential Bluechip Fund: The
