4 Jul, 2017, 11:34AM UTC
Equity Funds also known as Stock Funds, are invested in Stock market. Fund Assets are mainly in stocks (with some amount of cash), which also known as Equity Securities. They are used by Investors having one of these three Primary Goals – Income, Capital Gains or Both. Investments are made Focusing only on Certain Sector of markets (like health care, commodities, real estate).
Equity funds are suitable for investors having capacity to bear low risk & have only small amount to invest. Equity fund can be managed either actively or passively (index fund). It is either an Open End Fund or a Close End Fund. Price of Equity Fund is based on the Fund’s NAV (Net Asset Value) less it’s Liabilities.
Equity Funds are categorized based on Geographic Mandate and Market Capitalization and as follows:
Based on Geographic Mandate:
- Global Equity Funds – Invests in Stocks all over the Globe.
- International Equity Funds – Invests in Stocks outside United States.
- Worldwide Equity Funds – Invests in Stocks all over the Globe with no distinction between domestic or international markets.
- Domestic Equity Funds – Invests in Stocks in the Country where Investor stays.
Based on Market Capitalization:
- Mega Cap Equity Funds – Invests in Stocks of Biggest Companies around the Globe.
- Large Cap Equity Funds – Invests in Stocks of Companies having Large Market Capitalization.
- Mid Cap Equity Funds – Invests in Stocks of Companies having Medium Market Capitalization.
- Small Cap Equity Funds – Invests in Stocks of Companies having Small Market Capitalization.
- Micro Cap Equity Funds – Invests in Stocks of Companies having Market Capitalization of Few Millions.
Advantages of investing in Equity Funds:
- Capital Gain
- Limited Liability
- Claim Over Assets & Income
Contact us to invest in Equity Funds