They also qualify for tax deductions under 80C. They invest more than 80% of their assets in equity and have a diversified portfolio. Equity-linked savings schemes also come under equity mutual funds. There are also international funds that invest in stocks of overseas companies.
Another category of equity funds are sector-specific funds that invest in specific sectors like FMCG or banking. Based on market capitalisation they can be large cap funds, mid cap funds, small cap funds, and multi cap funds. Equity mutual funds can be categorized based on market capitalisation, investment style, and geography of investments. The funds are affected by market fluctuations.īest equity mutual funds can be actively or passively managed. But they deliver a higher return than debt and hybrid funds. Equity mutual funds are risky than debt and hybrid funds. In India, SEBI defines equity funds as a scheme that invests a minimum of 65% of its assets in equity and equity-related instruments. Invesco India Growth Opportunities FundĪn equity fund is a mutual fund that predominantly invests in equity stocks.
List of Top 10 Equity Mutual Funds to Invest in 2022 A well-informed decision will help you make better investments in the long term. Secondly, you must consider factors such as NAV, returns, asset allocation, historical performance, risk, and exit load. While evaluating any mutual fund you need to first ensure that the fund matches your investment goals. While you would have already decided to invest in equity mutual funds now you must know how to select the best mutual funds. Investors who are willing to invest in moderate to high risk and want to grow their money beating inflation invest in equity-oriented mutual funds.
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