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Make your future brighter and secure with the best equity mutual funds

Author: Raj Mehta
by Raj Mehta
Posted: Aug 26, 2016

Equity mutual funds are one of the best funds to invest with. Here with fewer investments, you get a safe and secure future. The growth is much faster than other investments and there are very minimum risks with this scheme.

Many of us have a wish to invest in the funds that will give us high returns and provide 100% security for the future. There is one of the best mutual funds to have your money invested where you get high returns at a moderate risk.

This investment scheme is none other than equity mutual funds. Equity funds are basically a mode of money investment where the funding can be open ended or closed end. Here investments are done mainly in stocks and thus the investors can buy the funds and bunch of stocks can be easily purchased as it is very difficult to buy individual securities.

With the equity mutual funds, the investment is done principally in stocks. The management of the investments can be done actively or passively through the index funds. Thus these funds are also known by the name of the stock funds. The categorization of the funding through mutual equity is done on the basis of size of the company, the style of investments in the holding and the geography of the organization. The size of this funding is identified through the capitalization done in the market. The investment style is determined through the holdings of the fund’s stocks.

One more categorization of the funding through mutual equity is whether the funds are domestic funds or the international funds. These can be further broad market funds, or the regional funds or the funds in a single country. The special funds related to equity focus on the major business areas like the health sector and the real estate sector.

Thus, the equity funds prove themselves to be one of the best vehicles for investment for the people who do not have large money for investment or are not fully aware about the logics and terms of financial investing. These prove to be one of the best practical investments for all categories of people from the low budget to the highest budget.

The major feature of the equity funds that makes it unique from other funding schemes is that there is very low risk associated with diversification of fund’s portfolio. A very small amount of capital is required to start up with the scheme. Many small individual investors are pooled up together to diversify the fund with no burden at any individual investor. The NAV value of the fund i.e. the net asset value decides the price of each equity fund. If a fund is more diversified then the effect on each individual’s price will be less negative and the chances of loss are minimal and there is less effect over the price of share.

Thus, you can safely invest in these funds and secure your future.

About the Author

Being a successful mutual fund investor, author speaks about how Mutual Fund's sip helps people to invest less and earn more in this article. This article highlights the systematic investment plan calculation methods to make more money within

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Author: Raj Mehta

Raj Mehta

Member since: Apr 25, 2016
Published articles: 6

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