Equity Mutual Funds are types of Mutual Funds that are meant to be invested principally in stocks.
One of the most important things about an Equity Mutual Fund is that it can be actively or passively managed. Hence they are also termed to be as Stock Funds. They are basically classified and categorized as per the size of the company.
A DETAILED STUDY OF EQUITY MUTUAL FUNDS
Equity Funds are considered to be those that invest somewhere around 65% of their portfolio in stocks. An Equity Fund can be considered to be best equity mutual funds, only when they would give high returns over a medium-long term horizon. Since it is known to most of you that equity oriented mutual funds are heavily invested in stocks, and hence there is a definite proportion of risk as the value to be funded may face some frequent and uncertain fluctuations. Hence however best or top equity mutual funds may it be, investing in them is generally preferred by aggressive investors, who can afford to bear the margin of loss, if occurs due to uncertain fluctuations in the value on market risks. Hence, if one is unsure about how to invest in equity mutual funds, make sure to analyze the parameters carefully and minutely before selecting the equity mutual funds.
LIST OF SOME OF THE BEST EQUITY FUNDS
Some of the best equity mutual funds 2019 are as follows:-
- Kotak Emerging Equity Scheme (G).
- L&T Midcap Fund (G)-Direct Plan.
- SBI Small Cap Fund (G) – Direct Plan.
- Mirae Asset Emerging Blue-chip (G).
- Canara Robeco Emerging Equities Fund.
BENEFITS OF EQUITY FUNDS
Some of the benefits that one would enjoy on investing in Equity Mutual Funds are as follows:-
- Exposure is the prime and a very vital factor while you are investing in stocks or mutual funds. By investing in the best equity mutual funds, you would get the exposure to various stocks, even when you are investing a nominal amount. But the margin of risk never changes even when the value of your investment is nominal, hence put in the decision rightfully.
- You end up earning capital gains as you redeem units of equity mutual funds. Now, the earned capital gains are taxable, but the rate of the tax needed to be given depends upon the tenure of your Investment or shortly the Investment Period. Hence this gives you a large boundary of profit or discount, as the rate of tax is not fixed and varies depending upon the time period of the investment.
- When there is an enclosed wall, there is also a path of entrance and exit. You may feel a sense of Relief whilst investing in a type of Equity Funds called ELSS which us a tax-saving investment under section 80C of the Income Tax. With a minimum lock-in-period of three years and good potential of high returns, ELSS has a good track record compared to other options under 80C. In ELSS too, you can either do a lump sum investment or a short term one.
An Equity Fund can also be categorized into the condition whether they are domestic or International. These can also vary from broad market to regional or single country Funds. Some specialty equity funds target Business sectors, mainly health care, commodities and real estates.