Equity Fund & Its Type
Types of Equity Fund
An Equity Fund Is A Type Of Mutual Fund Or Exchange Traded Fund ( ETF ) That Invests Primarily In Stocks And Shares Of Publicly Traded Companies . This Fund Are Also Commonly Referred To As Equity Mutual Funds. The Goal Of Equity Fund Is To Provide Investors With Long – Term Capital Appreciation By Investing In Stocks That Have The Potential For Growth . Equity Funds May Focus On Specific Sectors, Such As Technology Or Health Care, Or Invest In A Diversified Portfolio Of Stocks Across Multiple Industries.
To Understand Stock Investing, you first need to know the market capitalization. mutual funds that have been raised by many people and are attended by experienced people…so that fund manager appointed for this. click this link to know more about Mutual funds
Expert guide To Learn Equity Funds
Equity Fund & It's Detail
A mutual fund is a fund made up of many people, and experienced owner-fund managers work together as a team to research the funds and invest in multiple sectors, not investing in one place, but in many. He invests a little at a time, if incurs some low in some places, and then somewhere else a good profit or average profit. This fund is operated by an AMC i.e. An Asset Management Company, we can also call it a fund house, these companies collect your money and invest it in mutual funds. Mutual Funds i.e. Assets Management Company, which is made by SEBI i.e. Securities Exchange Board of India, created by the Government of India, Mutual Funds have been described in three categories, in which you will get a lot of information about equity funds, and all this is to secure the fund and SEBI control the stock market. there are so many types of equity such as : large-cap, mid-cap, small-cap etc
A Equity Fund – On the basis of market capitalization, which is called large, mid and small cap, to understand these three categories, it is very important for you to understand market capitalization, market capitalization means we do it for the cap of this market. Also, to know the valuation of the company, let us see the current market price of that company and the total outstanding shares held by that company. For example : market capitalization – Suppose a company has total 10000 shares , and the price of one share is Rs 10 , then according to this the market value of the company is 10000 * 10 = 100000 , so if someone wants to buy
this company If If it happens, he will have to pay one lakh rupees. So in this way we came to know that the market value and market cap of this company is one lakh rupees, market cap means market value, like large, mid, and small cap funds, we can calculate its value by market value, determined by capitalization only. Market value and capitalization only shows whether the company is large cap, mid cap or small cap. So for this, SEBI, the organization of the Government of India, which controls the Indian stock market, so that is why SEBI had issued a circular to define Large, Mid and Small
1. Equity fund details
- Large-cap Fund : So According to Sebi, The Market Companies Whose Capital Will be In 1 to 100 Means Top 100, Will Be Called Large Cap Fun The Companies in Which The Large Cap Fund Invests Come in The Top 100 Companies by market cap. These companies are financially strong and also stable. This funds invests
at least 80% of it assets in equity shares of these large Cap Funds. These Funds Offer The Most Consistent returns are also very low risk. Making Stocks in Large Funds Considered The Safest Investments If you don’t want to take risk more, you can invest.
- Mid-Cap fund : Looking at the Market Capital and Value, The Companies Which Come in the Top 101 to 250, They Come in MID C These 150 companies Invest 65% of their assets in these medium sized equities. It can be great – Caps, but it also carries More risk, Those WHO WANT TO TAKE MORE RISK CAN INVEST HERE
- Small-cap Fund : According to the Ranking, The Companies That Come from 250 Onwards Come In Small Cap, Market Cap Means on the Basis of Market These Funds Invest 65% of their Assets in Small Cap Companies You Can Get More Returns in Small Cap as Compared to Large Cap, and there Is More Risk in it, People Wire Want to Get More Funds in Working Time, they can invest in this fund if you want to now about these companies if yes then you can visit NSE (National Stock exchange) office or their website.
- ELSS : (Equity linked saving scheme) ELSS is a type of mutual fund in india that primarily invests in equities of companies of various industries and market caps. ELSS fund offer that tax benefits under section 80C of the income tax Act, making them a popular investment option for taxpayers.
- Sector fund : It offers investors the opportunity to invest in specific areas of the economy rather than the broader stock market as whole. This is attractive to investors who believe certain sectors are high growth or who want to diversify their portfolio by investing in different sectors. for example : sector funds may focus on technology, healthcare, energy or financial services.
Note : If you want to know which are the top 100 companies in large cap, you can follow nifty 100 index. in this index you will get list of top 100 companies, for mid-cap you can see from nifty 150, for small you can see list after 250 companies, nifty 250 small index, market cap or capitalization, accordingly, 251 come in 500 copanies.
Advantages Of Equity Funds
- Investment objective : Equity Funds aim to provide long-term capital growth by investing in stocks of companies that have the potential of higher returns.
- Investment strategy : Equity Funds may invest in variety of stocks across different sectors or may specialize in a particular sector, such as technology, healthcare, automobile, etc. Some equity funds may also invest in foreign stocks to diversify their portfolio.
- Risk level : Equity Funds are generally considered to be riskier than fixed-income or bond funds because stocks prices can be volatile and unpredictable. However the potential for higher returns also makes them attractive to investors.
- Performance : Equity Funds are evaluated based on their performance, which is measured by the fund’s total return over a certain period. Investor looks at a fund’s past performance as well as its current holdings and investment strategy before making an investment decision.
- Risk level : Equity funds are generally considered to be riskier than fixed-income or bond funds because stock prices can be volatile and unpredictable. however the potential for higher returns also makes them attractive to investors.
- Performance : Equity Funds are evaluated based on their performance, which is measured by the fund’s total return over a certain period.
Benefits Of Investing in equity funds
- easy liquidity : equity funds can be bought and sold very easily, making them a highly liquid investment option.
- Investment strategy : Equity Funds are accessible to both retail and institutional investors, and often have low minimum investments requirements, making them a suitable investment option for a wide range of investors.
- tax benefits : equity funds can offer tax benefits, such as long-term capital gains tax rates, which can help investors reduce their tax liability.
- Performance : All the fund house means AMC, they are regulated by SEBI itself, it is the organization that works to keep investors money safe and control the Indian share market, there is no fear of fraud o investing in them.
- Well regulated : Equity funds are generally considered to be riskier than fixed-income or bond funds because stock prices can be volatile and unpredictable. however the potential for higher returns also makes them attractive to investors.
- Systematic Investments : investing in equity schemes gives you the opportunity to invest small amounts at specific intervals through SIPs