Equity or Growth funds invest predominantly in equities i.e. shares of companies. The primary objective is wealth creation or capital appreciation. They have the potential to generate higher returns and are best for long term investments. Examples of Equity funds are Large cap, Mid cap, Small Cap, Multi cap, Sector and Tax-Saving funds, etc. Your deep understanding of equity funds may help you to choose the suitable scheme which will in turn give you higher returns. However, Equity Mutual Funds employ professional fund managers to research for you.