What are Equity Funds?
Equity funds are also called growth funds. Equity fund is a scheme of mutual fund, which invests exclusively in shares/stocks of the company. There are two types of equity funds.
Equity funds are active or passive. In Active Funds, the entire investigation is done by the Pareekh & Manager, the fund manager researches the market and then takes the decision himself. And in passive funds, the fund manager builds a portfolio which is a part of the market. Equity fund is the most popular fund among all the funds.
What is Equity Fund
Equity funds are for those investors who are capable of taking more risk in the stock market. Equity funds are used to invest in the stock market. Equity fund has high returns, so is the risk.
Equity funds invest in the secondary market related to equity. Equity funds can earn more profit in less time. Most equity funds invest according to the market capitalization of the companies. The funds which invest in the stock market are called equity funds.
Types of Equity Funds
Equity funds are mainly of Large Cap, Mid Cap, and Small Cap types. But apart from these there are many other funds like diversified funds and sector funds,
Benefits from Equity Funds
You can easily earn money by investing in Equity Funds, Equity Funds also get the same benefits as Mutual Funds, they also get the same benefits as Mutual Funds. As it is easy to invest and there is also transparency. In addition, it has low risk. The biggest advantage of equity funds is that there is no need to manage the shares you invest in it, only the manager of the equity fund manages your shares.