Equity Fund & Types of Equity Fund | Allstages Financial

What is Equity Funds?

Equity Funds are a specific category of mutual fund schemes that invest predominantly in equity and equity-related securities. The investment exposure can be in the form of direct investments in equity shares of domestic companies or through related derivatives with underlying equity exposure.


The different types of equity funds are as discussed below

Multi-Cap Fund

Such equity funds may invest across different segments of market capitalisation, viz. large-cap, mid-cap, and small-cap.

Large Cap Fund

Such funds must invest at least 80% of their net assets in equity shares and related instruments of large-cap companies, comprising of the top 100 companies in terms of full market capitalisation.

Equity Fund & Types of Equity Fund
Mid Cap Fund

Such funds invest at least 65% of its net assets in equity shares and related instruments of mid-cap companies, comprising of companies at rank 101 to 250 in terms of full market capitalisation.

Large & Mid-Cap Fund

At least 35% must be invested each in large-cap stocks and mid-cap stocks by such funds.

Small Cap Fund

A small-cap fund should invest at least 65% of its net assets in equities and equity-related instruments of small-cap companies, comprising of the companies not classified under the large-cap or mid-cap category.

Sectoral/thematic funds

These types of funds have to invest at least 80% of their assets in a dedicated sector or theme.

ELSS or tax saving funds

Equity Linked Saving Schemes or tax saving mutual funds qualify for tax deductions of up to Rs 1.5 lakh under Section 80C. ELSS funds must invest at least 80% of total assets in stocks. These funds have a mandatory lock-in period of three years.


Blog: Mutual Funds



Location: India

Comments

Post a Comment

Popular posts from this blog

5 Tips for Child's Education Planning

Image
Being a parent is an amazing experience. Being a parent makes you happy and euphoric every day. Giving your child the finest is a responsibility that comes along with all the joys. A corpus for higher education is an important element while making plans for your child's bright future. The cost of a college education is something you cannot deny. The corporate world has also grown extremely competitive, therefore for your child to succeed, they must stand out. Creating a corpus for her further education is the greatest you can do for him. Tips for Childs Education Planning Assess where you stand financially It must be obvious that saving money on necessities like food, shelter, and other important charges like health and medicine is not a good idea while investing. Therefore, it's crucial to assess your financial situation. An assessment of your income and all of your current and potential assets is advised. Knowing your financial resources will help you make future ...
Read more

Tips To Set Financial Goals for Your Future

Image
Your financial goals are the particular cash sums that you are determined to acquire in order to fulfil the life you see for yourself. Financial goals, like any goal, should be in accordance with your long-term objectives, whether these objectives include paying for your children's education, maintaining a particular standard of living in retirement, or paying off and staying out of debt. Good financial objectives are specific. For a variety of reasons, general goals like "improve my credit score" are likely to empower you to achieve them. Types of Financial Goals Short-Term Goals You may wish to create short-term objectives for items you'd like to be able to afford in the near future, such as a bathroom makeover or a trip to France, in addition to smaller, more narrowly focused goals that contribute to your long-term goals. Note how particular our case is. There's a reason for this. Financial psychology has the ability to aid you in achieving your objec...
Read more

How to Invest in Mutual Funds Plans

Image
Mutual fund investments were an unfamiliar form of investment to a large number of Indian investors just a couple of decades ago. But the situation today is quite different. With a steady rise in mutual fund investors in India year after year, mutual funds, today, are viewed as a simple and easy way to invest that could help build wealth. So, if you are wondering where to begin with mutual funds, here’s everything you need to know. What is a mutual fund? A mutual fund is an investment product that pools money from a group of investors to purchase different securities. However, most people regard a mutual fund as an investment avenue. In reality, you can invest in various financial securities like stocks, bonds, gold and money market instruments through an investment vehicle. When you buy a unit in a mutual fund, you own a small stake in all the investments included in the fund. Mutual funds can be an ideal investment choice given their ease of use and the advantages they offer...
Read more