Equity mutual funds are favoured by investors that are willing to incur market-based risk in order to produce inflation and benchmark beating returns in the long run. However, before making a mutual fund investment, investors should be mindful of their objectives, time horizon, and risk tolerance; if their investment aim is short-term, debt products are a good fit. In general, equity funds are divided into 3 categories, large-cap, mid-cap, multi-cap and small cap, hence if you are a conservative investor then large-cap funds will be best suited, similarly flexi cap or multi-cap funds for moderate risk and mid-cap, small-cap funds for high-risk appetite investors. However, equity mutual funds carry a higher risk during the short term compared to the long term, thus it is always advised to hold investments in mutual funds, especially equity, for the long term. So by considering this as an example, here we have taken three 5-star rated equity mutual funds that have turned a monthly SIP of ₹10,000 to over ₹9 lakh in 3 years.