There are a plethora of equity funds in the market today. The main question that comes to the mind of an investor is " Which equity fund should I invest in?", " How to choose the best fund?",etc.
Performance of a fund, fund house and the fund manager need to be considered ( over a period of two to three years ). Look at five star and four rated funds ( Again different sites rate funds differently..so try to choose authentic ones) which have performed consistently over a period of time.
Don't switch out a chosen fund if it doesn't maintain its performance in a few quarters.This approach wouldn't help. A top performing fund has every chance of slipping down the charts due to various factors. The top performance can itself be a factor..like due to the fund's performance..a lot of money pours into the fund and makes it handicapped ( example Sundaram select mid cap, Franklin prima..etc )
You should stick on to a fund chosen at least for a couple of years. Unless you see the funds drifting down more than a quartile in the group of funds.If you keep chasing the top performing funds and switch out and switch in frequently....you will be loosing a lot in investing cost 9via entry loads) and may get into a tax tangle , if you are selling funds within an year of purchase.
For 10 year analysis on some equity funds---http://ideasmoney.blogspot.com/2007/05/sip-returns-analysis.html