What is Equity Fund? Please understand before investing.
What is Equity Fund?
Before investing, it is very important for all of us to know about Equity Fund.
For this, today we have brought some important information
for you in this post related to equity funds.
If you want to know about Equity Fund, then definitely read
it completely.
In this, you will know what is Equity Fund? Types of Equity
Funds, Benefits of Equity Funds, How to Invest in Equity Funds?
What is Equity Fund?
What is equity fund meaning?
An equity fund is a scheme of mutual funds, which invests in
shares/stocks of the company.
Equity Fund is also called Growth Fund.
Equity funds have high returns, so the risk is equally high.
Most of the equity fund is invested in the stock markets.
Types of Equity Funds
Equity funds examples, type of equity fund
Large Cap, Mid Cap, and Small Cap mainly come in Equity
Funds.
Apart from this, there are many funds too.
Large Cap Equity Funds:- These funds are mostly invested in
big companies only.
Large-cap companies are considered safe for investment.
Such funds provide simple returns with low risk.
Mid Cap Equity Funds: - These funds are invested in
medium-sized companies only.
There is some risk involved in investing in these companies.
Small-Cap Equity Funds:- The money of this fund is invested
in small companies.
Investments made in such schemes are much riskier as
compared to mid-cap and large-cap funds.
But the profit in small-cap is also much higher than in
large or mid-cap scheme.
Sector Funds:- These funds are invested only in the shares
of companies of a particular sector.
The investment made in this remains focused on only one
sector. which is risky.
Tax Saving Funds or Equity Linked Savings Scheme: - Under
section 80C of the Income Tax Act, tax exemption for investments up to Rs 1.5
lakh is provided.
Such funds come with a lock-in period of three years. That
is, these funds cannot be withdrawn for three years.
Diversified Equity Fund:- This fund invests in companies
from different sectors and different industries.
Invest in large companies, mid-sized companies, and small
companies, etc.
Benefits from Equity Funds
After we invest the money, all the further process is done
by the fund manager.
By investing in Equity Fund, along with good income, they
are also ready to take risks. So this is a good option.
Whatever money we invest, it is invested by the fund manager
in any companies keeping the following things in mind.
Such as:- Market investigation, the performance of
companies, choosing the best options, etc.
How to Invest in Equity Funds
You can use any broker or agent to invest in this or you can
start investing online by yourself.
If you are new to this then you should invest with the help
of a broker.
In such a situation, investing with the help of an expert
will be a good investment. So that we will benefit from it.
Brokers and agents charge some fees from you for such
services.
In online or direct investment, you will have to handle your
investment activities yourself. Help will not be available from any broker in
this.
You can choose Top Equity Funds to invest in.
Then on their website, you will have to enter your details,
bank details, KYC, etc.
You can choose the fund of any company. Like SBI, Birla,
HDFC, etc.
So this was the information about Equity Funds, in which you
know what is Equity Fund? Types of Equity Funds, Benefits of Equity Funds, How
to Invest in Equity Funds?
If you got help from this information, then please share it.
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