We are going to tell you that equity is an integral part of all investments and all funds in mutual funds according to the SEBI rules. It will be the same percentage as the Debt fund. Investors will need to have 20% equity so they can make profits. 40% Debt will go into the balance fund. 60% equity will go into equity funds. The equity funds will have 90% equity. 10% Debt, and other etc. It doesn’t matter if it is Hybrid or Debt, it is Equity
While most equity funds are used to invest in the stock market. This equity mutual fund is better for people who can take risk. It has both advantages and disadvantages.
Top Equity Mutual Funds
This is because many fund houses have equity funds. If you are unsure which equity fund you want to invest in, some of these equity funds will be available:
- SBI BlueChip Fund
- Birla SL Frontline Equity Fund
- Meera Asset Opportunities Fund
- Franklin India Prima Plus Fund
- HDFC Mid Cap Fund
Different types of equity funds
All types of mutual funds may have equity but, according to market capitalization the majority of large caps are small caps. However, there are other options such as sector and diversified funds.
1. Large Capacity
Large-cap equity funds invest in larger companies with high revenues and size. Investors have a lower chance of losing their money. However, large-cap equity funds can be invested in smaller companies.
2. Mid Cap
These funds invest in mid-sized companies. While there are some risks and they may not reach their full potential, these companies can still grow. This company could become a large-cap company, and there is the possibility of making a profit or losing money.
3. Small Capacity
These mutual funds invest in small-cap stocks, which are not large-cap. However, investors have the opportunity to make huge profits if small-cap companies grow to be equal to large-cap. Investors can also take on a lot more risk if these companies fail.
4. Tax savings
This fund, as the name implies, saves tax. This fund provides income tax exemption. You also get some equity. You can get a tax deduction up to Rs 1.5 lakh.
How to invest in Equity Fund
Although equity can be invested through any mutual fund, it is still very simple. You can either meet an advisor to invest in equity funds or mutual funds or invest online. You should only invest if you are new to the market. To do so, you will need to present these documents: Aadhar Card/Voter ID, Driving License/PAN Card, Passport Size Photo, Residence proof, and Bank Passbook.
I hope that you enjoyed the article about Equity Fund. Have a great day!