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Top equity funds of 2021

Looking for list of best equity funds in 2022? Here is a list of top performing equity funds to invest in 2021. Read to know more on the best equity funds in India.
Top Equity Funds in 2021 - Top Performing Equity Mutual Funds

2021: Good year for equity mutual fund investors

In the year 2021, stock markets did well overall. The Nifty 50 Index gave good returns of around 23%. The broader market indices (mid and small caps) did even better than the Nifty 50. In this article, we will look at the best equity funds of 2021 in various categories.

Large-cap funds

Large-cap funds have the Nifty 100 Index as their benchmark. The Nifty 100 Index comprises India’s largest 100 companies by market capitalisation. The best large-cap equity funds of 2021 include:

Scheme nameAUM (Rs. crores)1-year returns
Invesco India Largecap Fund42733.67%
Tata Large Cap Fund1,07433.02%
Nippon India Large Cap Fund10,80032.52%
Franklin India Bluechip Fund6,62032.45%
IDBI India Top 100 Equity Fund54032.24%

(Source: https://www.moneycontrol.com/mutual-funds/performance-tracker/returns/large-cap-fund.html)

Note: The above returns are as of 29th December 2021. The funds have been ranked based on 1-year returns. The returns are for direct plans with growth option.

The top 5 large-cap funds have given a return in the range of 33-32%, which is a very good 1-year return.

Mid-cap funds

Mid-cap funds have the Nifty Midcap 150 Index as their benchmark. The Nifty Midcap 150 Index comprises India’s 101st–250th companies by market capitalisation. The best mid-cap equity funds of 2021 include:

Scheme nameAUM (Rs. crores)1-year returns
PGIM India Midcap Opportunities Fund3,58466.55%
Baroda Mid-cap Fund – Plan B8757.96%
Motilal Oswal Midcap 30 Fund2,50557.73%
Union Midcap Fund34854.24%
SBI Magnum Midcap Fund6,58752.99%

(Source: https://www.moneycontrol.com/mutual-funds/performance-tracker/returns/mid-cap-fund.html)

Note: The above returns are as of 29th December 2021. The funds have been ranked based on 1-year returns. The returns are for direct plans with growth option.

The top 5 mid-cap funds have given a return in the range of 66-52%, which is an excellent 1-year return.

Small-cap funds

Small-cap funds have the Nifty SmallCap 250 Index as their benchmark. The Nifty SmallCap 250 Index comprises India’s 251st–500th companies by market capitalisation. The best small-cap equity funds of 2021 include:

Scheme nameAUM (Rs. crores)1-year returns
L&T Emerging Businesses Fund7,68579.02%
Principal Small Cap Fund51276.70%
Nippon India Small Cap Fund17,55475.75%
Tata Small Cap Fund1,76574.32%
Sundaram Select Micro Cap – Series XVII11574.20%

(Source: https://www.moneycontrol.com/mutual-funds/performance-tracker/returns/small-cap-fund.html)

Note: The above returns are as of 29th December 2021. The funds have been ranked based on 1-year returns. The returns are for direct plans with growth option.

The top 5 small-cap funds have given a return in the range of 79-74%, which is an excellent 1-year return.

Multi-cap funds

A multi-cap fund invests a minimum of 75% of its total assets in equity and equity-related instruments. The 75% investment is spread across large, mid, and small-cap (25% each) stocks. The best multi-cap equity funds of 2021 include:

Scheme nameAUM (Rs. crores)1-year returns
Mahindra Manulife Multi Cap Badhat Yojana86453.47%
Nippon India Multicap Fund10,81848.66%
Baroda Multi Cap Fund – Plan B1,12948.28%
Principal Multi Cap Growth Fund85746.17%
Invesco India Multicap Fund1,71341.95%

(Source: https://www.moneycontrol.com/mutual-funds/performance-tracker/returns/multi-cap-fund.html)

Note: The above returns are as of 29th December 2021. The funds have been ranked based on 1-year returns. The returns are for direct plans with growth option.

The top 5 multi-cap funds have given a return in the range of 53-41%, which is a very good 1-year return.

Flexi-cap funds

A flexi-cap fund invests a minimum of 65% of its total assets in equity and equity-related instruments. The fund manager can choose to invest the minimum 65% or higher across large, mid, and small-cap stocks in their desired proportion. The best flexi-cap equity funds of 2021 include:

Scheme nameAUM (Rs. crores)1-year returns
BOI AXA Flexi Cap Fund16047.30%
PGIM India Flexi Cap Fund2,88845.97%
Parag Parikh Flexi Cap Fund18,29845.62%
Franklin India Flexi Cap Fund10,02040.35%
IDBI Flexi Cap Fund37538.02%

(Source: https://www.moneycontrol.com/mutual-funds/performance-tracker/returns/flexi-cap-fund.html)

Note: The above returns are as of 29th December 2021. The funds have been ranked based on 1-year returns. The returns are for direct plans with growth option.

The top 5 flexi-cap funds have given a return in the range of 47-38%, which is a good 1-year return.

ELSS funds

An equity-linked savings scheme (ELSS) invests a minimum of 80% of its total assets in equity and equity-related instruments. An ELSS has a lock-in period of 3 years. The amount invested or a maximum of Rs. 150,000, whichever is lower, qualifies for deduction from taxable income under Section 80C of the Income Tax Act. The best ELSS funds of 2021 include:

Scheme nameAUM (Rs. crores)1-year returns
Sundaram Long Term Tax Advantage Fund – Series III3969.33%
Quant  Tax Plan55462.94%
SBI Long Term Advantage Fund – Series IV19159.42%
BOI AXA Midcap Tax Fund – Series 17450.45%
IDFC Tax Advantage (ELSS) Fund3,35550.10%

(Source: https://www.moneycontrol.com/mutual-funds/performance-tracker/returns/elss.html)

Note: The above returns are as of 29th December 2021. The funds have been ranked based on 1-year returns. The returns are for direct plans with growth option.

The top 5 ELSS funds have given a return in the range of 69-50%, which is a very good 1-year return.

Sectoral/thematic funds

A sectoral fund invests most of its total assets in companies belonging to a particular sector such as banking, pharma, infrastructure, etc. A thematic fund invests most of its total assets in companies belonging to a particular theme such as rural, digital, consumption, ESG, etc. The best sectoral/thematic funds of 2021 include:

Scheme nameAUM (Rs. crores)1-year returns
Sectoral funds
Quant Infrastructure Fund23983.46%
ICICI Prudential Technology Fund7,38676.19%
ICICI Prudential Commodities Fund65573.33%
Thematic funds
Tata Digital India Fund4,19476.06%
Quant ESG Equity Fund2765.71%
Quant Consumption Fund3955.94%

(Source: https://www.moneycontrol.com/mutual-funds/performance-tracker/returns/sectoralthematic.html)

Note: The above returns are as of 29th December 2021. The funds have been ranked based on 1-year returns. The returns are for direct plans with growth option.

The top 3 sectoral/thematic funds have given a return in the range of 83-55%, which is a very good 1-year return.

International funds

An Indian international mutual fund invests most of its assets in the shares of companies that are headquartered and listed in foreign locations. Some examples of these companies include Facebook, Apple, Netflix, etc. that are headquartered in the US and listed on US stock exchanges. The best international funds of 2021 include:

Scheme nameAUM (Rs. crores)1-year returns
Aditya Birla Sun Life Global Excellence Equity Fund of Fund – Retail Plan15232.52%
DSP World Energy Fund17730.76%
Motilal Oswal Nasdaq 100 Fund of Fund4,28229.92%
Edelweiss US Value Equity Offshore Fund7529.69%
Principal Global Opportunities Fund3827.29%

(Source: https://www.moneycontrol.com/mutual-funds/performance-tracker/returns/fund-of-funds.html)

Note: The above returns are as of 29th December 2021. The funds have been ranked based on 1-year returns. The returns are for direct plans with growth option.

The top 5 international funds have given a return in the range of 32-37%, which is a good 1-year return.

Investing in equity mutual funds with the Glide Invest App

In the above section, we saw the best equity funds of 2021 in various categories. You can partner with the Glide Invest App for your financial planning journey to get recommendations for the appropriate mutual fund schemes based on your risk profile. You will get advice on planning and systematically investing towards your financial goals. 

With Glide Invest, you will get guidance for:

  1. A personalised risk profile assessment
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  3. Appropriate asset allocation
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  7. Hand holding you till your financial goals are achieved

To start investing towards your financial goals, download the Glide Invest App from Google Play Store or Apple App Store and get started.

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