What Is Equity Fund
Most of the investment in Equity Fund is used for investing in stock markets. These Mutual Funds can be beneficial for those investors who are ready to take risks in the stock market. Because if there is more profit in equity fund, then along with it the risk is also high. Through equity funds, investments are made in equity related things in the secondary market.
Equity Funds offer high returns with high risk. Most equity funds invest according to the market capitalization of the companies. In simple words, the funds which invest in the stock market are called equity funds. Most of these people invest with the thought of earning more profit in less time.
Types of Equity Funds
Classification of Equity Funds can be done in many ways. Equity funds are mainly divided into Large Cap, Mid Cap, and Small Cap. But apart from these, there are many other funds like diversified funds and sector funds, let’s know about them.
1) Large Cap Equity Funds:
2) Mid Cap Equity Funds
3) Small Cap Equity Funds:
4) Sector Funds:
5) ELSS (Equity Linked Saving Scheme) or Tax Saving Funds:
Equity Linked Saving Scheme or Tax Saving Mutual Funds is a way for investors to get income tax exemption. Tax exemption is provided under section 80C of the Income Tax Act.
Up to Rs 1.5 lakh invested in these funds are eligible for tax deduction. Such funds come with a lock-in period of three years. Lock-in period means that these funds cannot be withdrawn for three years after the investment and such funds can be withdrawn only after the completion of this period.
6) Diversified Equity Funds:
These equity funds invest in all sectors, this means that these funds are not restricted to investing only in certain types of stocks, they have a lot of investment options. And because of them keep investing in big companies, mid sized companies and small companies etc.
This fund invests in companies from different sectors and different industries. In simple words, this type of investment is not limited to investment in any particular part of the economy.
Benefits from Equity Funds
Equity Funds also get all the same benefits that we have from Mutual Funds. Such as ease of investing, transparency, low risk etc. The major advantage of investing in equity funds is that you do not have to worry about investing in stocks and sectors, all this work is done by the fund manager.
How to Invest in Equity Funds
Investing in Equity Funds is very easy, for this you can either start investing using a broker or agent or you can start investing online yourself.
If you are new to the market then you should invest with the help of a broker because this will give you all the information related to investments and funds. Brokers and agents charge you a fee for this. But there is also a convenience that we are investing with the help of an expert.
In online or direct investment, you are responsible for your own activities. In this, the help of any broker or agent is not taken.For this, you can go to the website of mutual funds of companies like Reliance etc. to create an account and start investing. On these websites, you will have to give information like KYC, bank details etc., which will be used when you buy funds.
In Direct Investment, you can buy and sell funds as per your wish. In the absence of a broker, you also save the additional amount given to him and if you want, you can also invest it in buying funds.You can invest anytime in Direct Investment. There is no time limit in this, you can invest at any time and from any place.
Top Equity Funds to Invest
India, there are equity funds of many companies, now the question comes, in which company’s funds to invest, then we tell you which company’s equity funds can be beneficial for you.
Top 5 funds that can be beneficial for your investment.
1) SBI BlueChip Fund-Regular (D)
2) Birla SL Frontline Equity Fund (D)
3) Franklin India Prime Plus Fund (D
4) Meera Asset Opportunities Fund-Regular (D)
5) HDFC Mid Cap Fund (D)
If you invest in these funds, then you can earn good profits. To invest successfully, it is necessary to do a lot of research. Before investing in any company, fully know about the financial condition of that company. And invest in equity funds only when you are completely satisfied.
Conclusin (What is Equity Fund)
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