Equity Schemes
Types Of Equity Funds
There are numerous equity funds available to meet the diverse needs of investors.
Small cap schemes
These funds invest in small businesses that have great growth potential and thus higher returns. These are the riskiest of the three, i.e. large, mid, and small cap funds.
Index funds
The fund manager has no say in the securities chosen for such schemes. These schemes replicate the composition of a certain index, such as the Nifty 50 or the S&P BSE Sensex.
Thematic funds
Certain equity funds invest in companies inside a specific industry, such as banking or pharmaceuticals, while others invest across multiple industries but adhere to a theme, such as Consumer funds.
Large-cap schemes
Investments are made in major, market-leading enterprises. These funds are generally regarded as more stable than other types of equity funds.
Multi-cap schemes
These funds may invest in large, mid, and small cap equities. While an investor has the option of investing in large cap, mid cap, or small cap funds, multicap schemes are ideal for investors who do not wish to choose between any specific market cap.
Mid-cap schemes
Investments are made in mid-sized businesses that have the potential to become market leaders in the future. These funds have the potential to provide higher returns due to their growth potential. At the same time, these funds are riskier than large cap funds. There are a variety of equities funds available for investors. The overarching goal of everything is to generate lengthy durations.