Features of an Equity Fund
1. Professional Management: Equity mutual funds are managed by experienced fund managers who make investment decisions on behalf of investors.
2. Diversification: Funds diversify investments across multiple stocks, reducing the impact of poor performance in individual stocks.
3. Liquidity: Investors can easily buy and sell units of equity mutual funds, providing liquidity.
4. Transparency: NAV is calculated daily, providing transparency in the fund’s value.
Equity Mutual Funds – Features, Types & Benefits
Equity Mutual Funds can be defined as a pool of funds collected from various investors and invested in a diversified portfolio of equities (stocks) across different sectors and market capitalisations. Equity mutual funds are a popular investment option that offers individuals the opportunity to invest in the stock market without directly buying individual stocks. Equity mutual funds are known for their potential to deliver long-term capital appreciation, making them an attractive choice for those looking to participate in the growth potential of the stock market.
Table of Content
- Features of an Equity Fund
- How Does an Equity Mutual Fund Work?
- Types of Equity Mutual Funds
- How Should You Invest in an Equity Mutual Fund?
- Benefits of Investing in Equity Mutual Funds
- Taxation Rules of Equity Funds