Equity Mutual Funds – Many People Face the same. what are equity funds? specific information about these funds are not available everywhere so that’s why we put together this article on stock funds. The equity fund is a mutual fund that invest only in equities/company shares. these are also called growth funds. stock funds are more popular of these three funds.

what is equity mutual funds and what are the benefits it brings?

most investment in equity funds are used to invest in stock market. these mutual funds are beneficial to investors willing to take risk in the stock market. the more profits the stock fund makes, the greater the risk. equity funds are used to invest in things like stocks on the secondary market. equity funds offer high returns at high risk. most equity funds invest based on the company’s market capitalization. simply put, a fund that invests in the stock market is called an equity fund. most people invest in these to make more profit in less time.

1. large-cap equity funds – large capitalization fund tends to invest only in large companies . these companies are well established in their field, making new or small-cap companies less likely to go bankrupt. for this reason only, large-cap funds are considered suitable for such equity investors who don’t like to take more risks even in equity funds. such funds provide moderate returns with low risks.
2. mid-cap equity funds – mid cap equity funds tend to invest only in medium sized companies. Investing in these companies involves a certain amount of risk. The company may not reach its full potential, and you have to lose your money. But you too can benefit from investing in such funds. When the investee company evolves and become a large company, so you can get a lot of benefits and it will be very beneficial for you as well. people who can take higher risks invest in such equity funds
3. Small-cap equity funds – A Mutual fund system where most of the funds are invested only in stocks / shares of small companies. This type of mutual fund is known as a small-cap equity fund. The administrator of such systems invest most or all of their funds in small businesses. Because of this, investing in such programs is much riskier than mid and large-cap funds. But the returns of small cap funds are many times greater than those or large and mid – cap programs . Investing in these companies is also risky as little information is publicly available about them. Small-cap equity funds are intended only for investors with high-risk appetite.
4. Sector funds – A sector fund means investing in a specific sector. These funds invest only in stocks of companies in specific industries, sector funds are considered very risky in the fund world because investments in sector funds are concentrated in one sector, because there is no trust in such funds. If you want to invest, invest only a small portion of your capital in these funds. 
5. ELSS – Equity Linked Saving Scheme or Tax Saving Funds Equity linked saving plans, or tax saving mutual funds, are one way investors, can take advantage of income tax exemptions. Tax exemption is regulated under section 80 C of income tax act. Investment in these funds are tax deductible up to a maximum of Rs. 1.5 lakh. These funds have a three year wasting period. A lockup period means that these funds cannot be withdrawn after this period has passed.
6. diversified equity fund  – These equity funds invest in all sectors. This means that these funds don’t just invest in specific types of stocks; they have a wide range of investment opportunities. These funds invest in companies in various sector and industries, simply put, such investment are not limited to investing in any particular part of the economy.