When it comes to equity mutual funds, investors should think about investing for the long term rather than simply seeking higher returns due to the risk involved. Equity mutual funds are ideal for investors with a long-term investment perspective of at least 5 years, investors aiming for capital appreciation, and investors with a deep understanding of the market. However, before you invest in mutual funds, you should be in tune with your investment horizon and risk profile. Stock mutual funds are a great way to diversify your portfolio, and the best part is that stock funds have proven the ability to provide alpha and inflation-beating returns for investors who adhere to the investment cost averaging strategy. the rupee Here, we have used three 5-star rated stock mutual funds as an example, which have converted a monthly SIP of $10,000 to more than $9 lakh in just three years.