Equity mutual funds focus on stocks and aim to deliver high returns by participating in the growth of businesses. They are suited for long-term investors with a higher risk appetite.
Types of Equity Funds
- Large-Cap Funds: Invest in established companies with stable returns.
- Mid-Cap Funds: Focus on mid-sized companies with growth potential.
- Sectoral/Thematic Funds: Target specific industries or themes.
Benefits
- Wealth Creation: Ideal for long-term growth.
- Diversification: Spreads risk across various companies and sectors.
- Professional Management: Managed by experienced fund managers.
Equity funds are best for investors looking to beat inflation and achieve significant capital appreciation.