An equity fund is a mutual fund which primarily invests its assets in shares/stocks of companies. According to the Income Tax Act, anis defined as a fund which invests at least 65% of its assets in equities. It can invest the balance 0%-35% in debt and money market securities. Market-linked equity funds have the potential of giving inflating beating returns taking a moderate to high amount of risk. Below is a list of thewhich can help you in wealth creation and its appreciation in the year 2019.

(Data as on February 28, 2019, Source: Pulse Labs)

SBI Small Cap Fund is a nearly decade old fund which has been in the space since September 2009. The scheme has featured an AUM (Assets Under Management) of Rs. 1,616 crore as on February 2018. The scheme has outperformed its benchmark in all the above-mentioned tenures. The scheme generated a 3-year return of 17.88% against a 3-year return of 13.66% provided by its benchmark. During the 5 year period, the scheme yielded a return of 27.46%, over 10% more than its benchmark return of 17.28%. Being asmall cap scheme, SBI Small Cap Fund has invested a majority of its assets (65.55%) in small cap companies. It is a relatively aggressive small cap fund which has given preference to mid caps in its portfolio over large caps. The mid cap and large cap holdings of the fund stand at 16.15% and 9.42% respectively. The scheme has hedged its aggressive stance by holding around 8.88% in cash and debt instruments. In the sector-wise allocation of assets also, the scheme follows an aggressive strategy as it holds more of cyclical sectors in its portfolio than defensive sectors. SBI Small Cap Fund is a great fund which has demonstrated its potential of giving high returns by undertaking a moderately high level of risk. It is an ideal equity pick for investors looking for an aggressive equity scheme capable of giving extraordinary returns.

Fund Manager:Mr. Neelesh Surana & Mr. Ankit Jain

(Data as on February 28, 2019, Source: Pulse Labs)

Mirae Asset Emerging Bluechip Fund has been in the category for almost 9 years now. It featured an AUM (Assets Under Management) of Rs. 6,444 as on February 28, 2019. The scheme has yielded staggering returns of 21.92% and 25.21% over the last 3 year and 5 year periods respectively. During both the tenures, the scheme has given returns better than its benchmark which provided returns of 17.60% and 17.28% over the previous 3 year and 5 year periods respectively. It is relatively conservative equity scheme which has invested a majority of its assets in large caps and mid caps, giving the least exposure to the small cap companies. In the sector-wise allocation of funds, the scheme follows a balanced approach as it has given a nearly equal weightage to consumption-driven sectors and defensive sectors. The relatively conservative asset allocation of the scheme helps keep it risk quotient low. Mirae Asset Emerging Bluechip Fund is the right fund for investors seeking great returns undertaking a moderate risk level.

(Data as on February 28, 2019, Source: Pulse Labs)

Canara Robeco Emerging Equities Fund is more than a 14-year-old fund which made its debut in March 2005. The scheme has demonstrated an impressive performance over the recent years. The scheme generated an attractive return of 20.29% over the past 3 year period against a 3-year return of 17.55% provided by its benchmark. During the 5 year period, the scheme yielded a massive return of 25.72%, over 8% more than its benchmark. The scheme has adopted a balanced stance in the allocation of its assets across market capitalisations. The scheme has invested its maximum assets in mid caps, followed by large and small caps. In the allocation of its assets across sectors, the scheme is a little tilted towards the consumption-driven sectors than defensive sectors. Canara Robeco Emerging Equities Fund is an ideal equity fund for investors looking for a good large and mid cap scheme which features a moderate risk quotient and is capable of giving inflation beating returns.

(Data as on February 28, 2019, Source: Pulse Labs)

Reliance Small Cap Fundis an almost 9-year-old fund which featured an AUM of Rs. 7,245 crore as on February 28, 2019. The scheme has given a return of 19% during the last 3 year period wherein its benchmark provided a return of 13.66%. The scheme has outperformed its benchmark during the 5 year period as well. During the previous 5 year period, the scheme generated a stellar return of 25.04%, nearly 8% more than its benchmark return of 17.28%. It is a relatively aggressive equity fund which invests its maximum assets in small cap companies, the most volatile equity instruments. The scheme has maintained its aggressive stance in the sector-wise allocation of its funds as well. The scheme has given a higher weightage to consumption-driven sectors than defensive sectors in its portfolio. It is the right fund for investors looking for an aggressive equity fund which gives potentially high returns for a relatively high risk level.

(Data as on February 28, 2019, Source: Pulse Labs)

Kotak Emerging Equity Scheme is one of the time-tested equity funds which has been in the space for more than 12 years now. The scheme has generated extraordinary returns of 16.74% and 22.69%, beating its benchmark during both the tenures. The schemes benchmark has provided returns of 14.35% and 17.74% over the last 3 year and 5 year periods respectively. It is a relatively aggressive equity fund which invests its maximum assets in mid cap companies which has responsive to stock market and economic changes. The scheme follows the aggressive approach in the sector-wise allocation of its funds as well as it has invested more of its assets in cyclical sectors than defensive sectors. It is an ideal equity fund for investors willing to take a relatively high level of risk for potentially high returns.

Deepali is a personal finance writer who tries to explain even the most complex topics in an easy to understand language. She likes to keep her writings precise and to the point.

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