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Equity Funds

Give your savings the growth they deserve. Invest in Equity Funds and unlock the potential of long-term growth

Wealth creation through compounding returns
Easy liquidity and Accessibility
Spread risk through diversification

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What are
equity mutual funds?

Equity Mutual Funds are those that invest at least 65% of their portfolio in equity and equity-oriented securities. These funds carry a high volatility risk with a high return potential.

Why invest in equity funds?

Long-Term Growth

Stay invested in equity mutual funds for a long term and grow your savings as volatility tends to smoothed out in long term.

Diversification

Choose equity securities across different market caps and sectors and invest in a diversified portfolio to enhance the return potential.

Tax Saving

Save tax on investment with Equity Linked Saving Schemes. Claim a deduction of up to Rs.1.5 lakhs under Section 80C.

Wealth Creation

Create optimal funds for your financial goals with the returns offered by Equity Funds and achieve financial independence.

Types of equity funds

Funds Based On Market Capitalisation

Large-cap Funds Invest in the top 100 stocks

Midcap FundsPortfolio of fast-growing companies

Small-cap FundsInvest in companies with the highest growth potential

Multicap FundsInvest across all markets caps

Large and Midcap FundsPortfolio comprising of large and mid-cap stocks

Funds Based On Investment Style

Value fundsFollow the strategy of value investing

Dividend Yield FundsInvest in stocks that consistently yield dividends

Focused FundsA concentrated portfolio of upto 30 stocks with a focused approach

Understanding Equity Funds

What are equity funds?How do equity funds work?What are the features of equity funds?How many equity funds do you need?What are the payout options?What should be the duration of your equity investment?What are the tax implications of Equity Fund Investment?

What are equity funds?

Definition

Equity Funds are mutual funds which invest a minimum of 65% of their portfolios in equity and related assets.
Risk Profile

Equity Funds have a high-risk profile because the portfolio is majorly invested in equity.
Return Potential

As the equity market has the potential to offer lucrative returns, Equity Funds can deliver attractive returns on investment.

Long-Term Horizon

It is recommended to invest in Equity Funds with a long-term perspective to ride out short-term volatility.
Different Types

There are ten different types of Equity Funds based on their portfolios and investment strategies.

How do equity funds work?

Investors looking to invest in equity pool their investments in a particular fund.
The fund manager allocates the corpus into different equity stocks and securities based on the investment objective of the fund.
If the equity market performs well, the value of the portfolio rises and investors make a gain.
However, if the equity market suffers from short-term volatility, there’s a possibility of loss.

What are the features of equity funds?

SIP and lump sum investment modes
Tax-saving with ELSS funds
Open-ended schemes for any time investments
Suitable for investors with a healthy risk appetite
Professionally managed portfolios

How many equity funds do you need?

There is no universal number dictating the number of Equity Funds in an ideal portfolio.

You can invest in different types of Equity Funds for a diversified portfolio.

The choice of funds depends on your ;

1. Financial goals
2. Risk appetite
3. Investment horizon.

What are the payout options?

Equity Funds offer two payout options -

Dividend

You earn regular dividends on your investment.

Growth

The returns are reinvested in the portfolio, and you can earn a lump sum return on redemption.

What should be the duration of your equity investment?

It is better to hold Equity Funds for the long term. This helps in two ways:

You can wait for short-term volatility to die out and earn good returns.
If you give your investment time, compounding helps you grow a sizeable corpus.

What are the tax implications of Equity Fund Investment?

Redemption within 12 months - short-term capital gains tax of 15% on the returns
Redemption after 12 months - long-term capital gains tax of 10% on returns exceeding Rs.1 lakh. Returns up to Rs.1 lakh are tax-free.

Bonds

Guaranteed returns, liquid trading

Diverse bond types
Stable portfolio returns

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ULIP

Invest and secure with ULIPs

Market-linked returns
Flexibility: withdraw, switch, top up

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FAQs On Equity Funds

An equity Fund is a type of mutual fund scheme that allocates more than 65% of its assets to investments in equity stocks and related securities. While a small portion may be allocated to debt and other funds, the predominant emphasis is on equities, therefore known as equity mutual funds.

Equity mutual funds are well-suited for:

● Investors who are committed to a long-term investment horizon.
● Investors with a high-risk tolerance.
● Those seeking portfolio diversification.
● Investors aiming for tax savings and wealth accumulation
● Investors who want to Start Equity Investing with a Small Amount

Since the optimal performance of equity mutual funds is typically observed over the long term, it is advisable to maintain investments in these funds for more than 3 years

Yes! Investing in Equity Funds is advantageous, given their historical track record of delivering superior returns compared to alternative investment options. However, it is imperative to remain patient and maintain your investments through market fluctuations to benefit from such investments.

Opting for Equity Mutual Funds is a superior choice, especially if you lack the time or expertise for independent research. With Equity Funds, one can initiate investments with as little as ₹100.