Equity Fund is the most famous fund in the market after Mutual Fund. Equity Fund gives more returns than other mutual funds and that is why most people prefer to invest money in Equity Funds.
But as much as there is profit in equity fund, there is also loss, so we will know whether it will be right for us to invest money in equity fund or not?
What is Equity Fund?
Equity fund is a part of mutual fund. Equity fund invests money in most stock market companies and for this reason both profit and loss are associated with equity fund. Most of the people like to invest money in equity fund because in this There is the maximum profit but the loss in equity funds is also the same, so people shy away from investing money in equity funds.
Types of Equity Funds?
Equity Funds are mainly divided into three parts Mid Cap Equity Fund Small Cap Equity Fund and Large Cap Equity Fund.
1. Mid Cap Equity Fund
2. Small Cap Equity Fund
3. Large Cap Equity Fund
Mid Cap Equity Fund Kya Hai ?
Mid Cap Equity Fund is that part of the Equity Fund that invests in those companies of the stock market which are of middle class, in which both profit and loss are associated, both loss and profit on investing money in such companies. may be equal.
If the mid-cap companies do not perform well, then the investor’s money can sink in the mid-cap, but sometimes the mid-cap companies give such performance that the person investing gets huge profits.
Small Cap Equity Fund Kya Hai ?
Small cap equity fund is also a part of equity fund which invests in small companies, investing in such companies can prove to be a risk.
But one of the biggest advantages of investing in these types of companies would be that if the small company performs well, then the investor can get 50 times more profit from his investment because the cost of investment in these companies is low but the returns are high. Get.
Large Cap Equity Fund Kya Hai ?
Large cap equity fund is that part of equity fund that invests money in companies in the stock market which are top companies in their respective sectors.
These companies maintain a value of their own in the market and there are very less chances of money sinking in these companies, but in such a way that the chances of money sinking in these companies are less, similarly the profits from these companies are also very less.
Because the cost of investment in these is high, due to this the returns are less than midcap and smallcap.
Equity Fund Kaise Kharide?
Equity Fund is a part of Mutual Fund itself, so you do not need to buy Equity Fund from anywhere else, from where you are buying Mutual Fund, you can invest money in Equity Fund.
If you want, you can also choose midcap smallcap or large cap equity fund within equity fund.
Equity Fund Me Invest Kaise Kare?
If you are going to invest money in equity funds, then first of all you should decide how much risk you can take.
Because there is risk associated with equity funds, if you are not afraid of taking risks and you do not have any problem with taking losses, then you can invest money in small cap equity funds, in which you will get more profit.
But if you do not want to take much risk and you are in 50-50 condition, then in such a situation you can invest money in mid cap equity fund, in this you will get less profit but your risk will also be halved.
But if you want to take very less risk then you can invest money in large cap equity fund, in this equity fund you will get less risk but at the same time you will get less profit as compared to midcap and smallcap.
Advantages of Equity Funds?
Equity fund is a beneficial fund as compared to investment because in this you get the maximum profit, that is why if we talk about its benefits, then equity fund gives you the highest returns in mutual funds because it contains midcap, smallcap and largecap. Where you can invest according to your risk appetite and get your desired returns by reducing or increasing your risk.
Disadvantages of Equity Funds?
The money of Equity Fund is invested on the companies in the stock market and that is the reason it carries a lot of risk because the ups and downs inside the equity market are very fast, due to which the possibility of loss is high.
Difference between Equity Fund and Mutual Fund?
There is a simple difference between equity fund and mutual fund, both are investment funds, but equity funds invest their money in the stock market.
On the other hand Mutual Fund invests its money in different places like share market securities bonds and other sectors. Investing money in mutual funds is considered more secure and investing money in equity funds is less.
But if we look at the returns, then people who invest money in equity funds get very high returns.
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