What is Mutual Fund?
- A Mutual Fund is a pool of money from investors who wish to make money.
- It invests money in Stocks, Bonds, money market instruments and different types of securities.
- It is a collection of different investments.
- It is managed by professional Fund Manager.
- Mutual Fund is well diversified investment tool.
- It is a low cost investment option.
- It may be a tax saving investment vehicle.
- Investments in Mutual Funds are subject to market risk.
What is Equity Mutual Fund?
Money in this type of Mutual Fund is invested purely in equity / stock market. If you invest in 'Equity Mutual Fund', all your money will be invested in stock/equity market by the Fund Manager.
Types of Equity Mutual Fund ?
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- Equity-Large Cap: Money is generally invested in stocks of Large Market Capital (> 25000 Crore) like Maruti Suzuki, SBI, Infosys etc.
- Equity-Small Cap: Money is generally invested in stocks of Small Market Capital (<5000 Crore) like Westlife Development, Hawkins Cooker, Disa India etc.
- Equity-Mid Cap: Money is generally invested in stocks of Medium Market Capital (> 5000 Crore, <25000 Crore) like Atul, Tata Chemicals, Century Ply etc.
- Equity-Multi Cap: Money is generally invested in stocks of Large, Medium & Small Market Capital i.e all three category.
- Equity-Tax Saving: Money is generally invested in different stocks with 03 years of Lock-in period for benefit of Tax deduction under Section 80C of Income Tax in India.
- Equity-Thematic or Sectorial Mutual Fund: Money is generally invested in stocks of specific Theme or Sector like Banking, Software, FMCG, Pharma etc.
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