All You Ever Wanted to Know About Diversified Equity Funds and The Top Performing Products in This Category
A diversified equity fund makes investments in companies not withstanding their size and the sectors to which they belong. So, investment diversification occurs across the stock market, so that investors can gain maximum profits.
Companies featuring on the stock exchange can be categorised in the following manner -
- Large cap companies - These companies have large market capitalisation.
- Medium cap companies - Companies having medium market capitalisation come under this category.
- Small cap companies - Companies in this category have smaller market capitalisation.
By investing in diversified equity funds, investors can benefit from the growth of firms across sectors, industries, and sizes.
Although there are many benefits of investing in these funds, we have dished out here some of the most important ones. Read on -
- The first and most important benefit is in terms of diversification. When you invest in a diversified equity fund your money gets diversified across companies, sectors and industries. While some fund types such as large cap funds or small cap funds focus on companies having certain market capitalisations, others like value funds or multi-cap funds invest across companies having different market capitalisations. Diversification saves you from sector-specific risks.
- Since you invest in a fund that is manged by an expert in the field of finance, you run a lower risk of losses.
- The entry level fee to enter a diversified equity fund is somewhere around INR 500. But if you choose to invest directly in stocks, you might have to pay in thousands for buying a single stock unit.
There are so many diversified equity fund products in the market, that it’s obvious for you to feel dicey about which one to pick. That is why we have brought to you a list of top ten equity funds (diversified) so that you can pick the options that suit you best. Below, you find the chart that includes all the schemes, and we tell you how they have performed ever since their advent. Check out -
Source: Swaraj Wealth Research
The first in the list is MOSt Focused Multicap 35-Regular Plan - Growth Option, which came into existence on 28-04-2014. This scheme having an asset of INR 8677.83 crores under management offered a return percentage of 31.11 since launch.
The second in the list is Reliance ETF Junior BeES, which was launched on the 21st of February, 2003. This scheme, having an AUM of INR 151 crores gave a return of 30.47% since its advent.
Let’s come to the next entry i.e. Aditya Birla Sun Life Equity Fund- Growth- regular Plan. This scheme launched on 27-08-1998, offered a return of 24.79% since its launch.
The fourth top performer in this category is ICICI Prudential Dynamic - Growth, which came into existence on 31-10-2002. Having an AUM of INR 7797.71 crores, this scheme offered a return percentage of 24.09.
The fifth best performing scheme in our list is ICICI Prudential Value Discovery Fund- Growth, launched on 16-08-2004. This scheme that has an asset of INR 16744.06 crores under management, gave a return of 22.19% since its launch.
The next in the queue is Aditya Birla Sun Life Dividend Yield Plus- Growth- Regular Plan, which came into being on the 26th of February 2003. It has an AUM of INR 1096.66 crores and offered a return of 21.57% since launch.
The seventh best performer is Kotak Opportunities - Growth, which came into existence on 09-09-2004. This scheme gave a return of 20.44% since it’s advent and has INR 1893 crores of asset under management.
Parag Parikh Long Term Value Fund - Regular Plan - Growth is the eighth top performer in the list and has a return percentage of 20.08 since launch. This fund was launched on 28-05-2013, and has about INR 860.16 crores of asset under management.
The second last in the chart is HDFC Equity Fund - Growth with an AUM of INR 19600.63 crores. The scheme was launched on 01-01-1995, and it offered a since-launch return of 19.94%.
The last entry in the list is Templeton India Growth Fund- Growth Plan, a 2003 launched scheme with an asset of INR 593.51 crores under management. The scheme gave a return of 19.92% since its advent.
All the schemes above are great for investment, all you need is to figure out which one/s suit/s your financial requirements the best.