"Equity Mutual Fund : Basic Concept"

-

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 ?

  • 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.
Simply invest in Equity Mutual Fund of select category as per your goal, time & risk appetite and the fund manager will take care of your investment to grow with handsome return. 

 Happy Investing !!! 




##  Common Investors may collect ebook from the following link for mastering the basics of investment :

### Govt Job Aspirants in Mechanical Engineering (Degree or Diploma) may collect ebook from the following link for cracking Competitive Exams :

Comments

  1. Unknown19 March 2018 at 20:13

    Pradip, very useful and concept clearing Post. Write something on Debt fund.

    ReplyDelete
  2. PRADIP20 March 2018 at 08:02

    Thanks! Please wait few days more !

    ReplyDelete
  3. Pooja Pariya22 September 2018 at 05:05

    Nie information U shared here thanku..
    stock market tips

    ReplyDelete
  4. Ana1 September 2019 at 07:45

    Do you know that OKGlobal Coin Switch is the future of investment and global currency management for all? The fees and rates that OKGlobal will be charging from users will always remain the cheapest in the industry. As the profits from the system go into the OKGlobal coin, it will help to enhance the intrinsic value for prospective investors. The service will ensure to generate coins that investors can convert to fiat currencies immediately or vice versa. https://www.okglobalcoinsg.com
    Note : The first truly global STO that is open to the general public and has NO requirement to be an accredited or institutional investor.
    #OKGlobalCoin #OkGlobalcoinswitch #Okglobal #securitytoken #smartcontract #blockchain #crypto #STO

    ReplyDelete
  5. pallavi6 January 2020 at 00:46

    Nice Article. Thank you for sharing the informative article with us.
    equity shareholders
    tax in india

    ReplyDelete
  6. Sandy10 January 2020 at 01:26

    Great Information! Its looking Nice.Useful for me to develop my knowledge. Thank you!

    You can invest in stocks yourself by buying individual Stocks & Shares or mutual funds,IPOs, or get help investing in stocks by Visit stockinvestor.in
    Equity Trading

    Currency Trading

    Demat Account

    ShareTrading

    ReplyDelete
  7. Sandy3 February 2020 at 22:19

    Great Information! Its looking Nice.....

    You can invest in stocks yourself by buying individual Stocks & Shares or mutual funds,IPOs, or get help investing in stocks by Visit stockinvestor.in
    phillips carbon share price
    shakti pumps share price
    ramco industries
    mahindra amc
    bajaj electricals share price
    kolte patil developers ltd
    sbi insurance
    bsesensex

    ReplyDelete
  8. Komali5 February 2020 at 21:47

    Thanks for such a valuable and informative platform I find here.
    wish to learn more about stock market and stock/share market Live Updates from this site (stockinvestor.in)

    lic housing finance share price target
    tata power stock recommendation
    amarraja batteries
    jm financial share
    phillips carbon share price
    balrampur chini mills
    relaxo chappals
    bioscon ltd

    ReplyDelete
  9. Dariya18 February 2020 at 05:01

    nice information thanks for sharing valuable content with us we also provide great information related to your blog feel free to visit our investment dummies website.

    ReplyDelete
  10. pallavi17 March 2020 at 05:29

    This post is helpful to many people. stockinvestor.in is a stock related website which provides all stocks related information like new stocks and shares available in the stock market.
    Colgate-Palmolive Ltd
    Cipla Ltd

    ReplyDelete
  11. Phani Kumar18 March 2020 at 02:38

    Hey, Thanks for sharing this Tips About Financial Planning. I just see your blog and impressed. keep the same alltime. I am looking daily Yes Bank news.

    ReplyDelete
  12. Sadhana s30 March 2020 at 19:34

    Good information. Thanks for sharing. If you want to know more about stock market related topics then visit Bank Nifty
    Bank Nifty
    HFFC IPO
    Stock Market

    ReplyDelete
  13. Dariya8 June 2020 at 02:50

    nice information thanks for sharing valuable content with us we also provide great information related to your blog feel free to visit our
    Voltas.

    ReplyDelete
  14. Dariya19 June 2020 at 02:46

    Thanks for sharing the information. That’s a awesome article you posted. I found the post very useful as well as interesting. I will come back to read some more Muthoot Fincorp Ltd.

    ReplyDelete
  15. Dariya25 June 2020 at 03:39

    Thanks for sharing the information. That’s a awesome article you posted. I found the post very useful as well as interesting. I will come back to read some more sensex

    ReplyDelete
  16. Dariya25 June 2020 at 03:39

    This comment has been removed by the author.

    ReplyDelete
  17. Phani Kumar25 June 2020 at 04:24

    Hey, thanks for the information. your posts are informative and useful. I am regularly following your posts.

    Experts Best stocks,
    Safari Industries,
    Asian Paints,
    Amber Enterprises,
    Ultratech Cement,
    Bata India,

    ReplyDelete
  18. Dariya9 July 2020 at 03:11

    Great information thanks for sharing
    BHARAT 22 ETF FFO 2
    Bharat 22 ETF
    Bharat 22 Index

    ReplyDelete
  19. Ady19 July 2020 at 04:19

    Thanks for your valuable information. stock investor is a stock related website which provides day to day information of the stock market.
    Marico Ltd
    Hindustan Petroleum Ltd

    ReplyDelete
  20. Dariya8 August 2020 at 02:46

    Hey...Great information thanks for sharing such a valuable information
    Aditya Birla Sun Life Mutual Fund
    Aditya Birla Sun Life AMC
    global markets


    ReplyDelete
  21. Sadhana20 August 2020 at 05:33

    Thanks for sharing. Really useful information and it’s a great article with good resources. Checkout our Stock Investor website for more latest stock market update.
    Bharat Agri Fert & Realty Stock Price
    Bhansali Engg live share price
    Bhandari Hosiery Exports Ltd Share Price
    Bhakti Gems and Jewellery Share Price

    ReplyDelete
  22. Dariya17 September 2020 at 04:09

    Nice information thanks for sharing
    Adani Green Energy
    shares of Adani Green
    Adani Enterprises market cap
    BSE Sensex


    ReplyDelete
  23. Ady29 September 2020 at 01:59

    Nice article. stockinvestor.in shares information related to stock market like stock market analysis, advices the tips to invest in stock market and also provides stock market recommendations.
    Equity market
    trading
    currency pairs

    ReplyDelete

Post a Comment

Popular posts from this blog

Bulls make money, Bears make money, Pigs get slaughtered !!!

-
Image
                     People enter the world of stock market in the expectation of big money in short time. But making money in stock market is not easy at all, rather an uphill task. Sound knowledge & understanding of market, huge research work, monumental patience & discipline - are the qualities of a successful investor.                                         Bull market is represented by a bull which attacks with its horn in upward direction. Metaphorically speaking, the investors have high confidence & stock price goes on increasing. Investors make profit after buying stocks at lower prices & selling at higher prices.                        Bear market is represented by a bear which attacks with its paw in downward direction. Metaphorically speaking, the investors have low confidence & stock price goes on decreasing. Investors make profit after selling stocks (which do not exist in his portfolio) at higher prices & buying at lower prices.
Read more

The concept of 'Market Making' & 'Market Maker' in Stock Market !

-
Image
'Market Making' & 'Market Maker' Suppose one buyer is willing to buy a specific stock but there is no seller to complete his order. The reverse case may also occur in Stock Market. To sort out this real life situation, the concept of 'Market Making and Maket Maker' was introduced by SEBI (Securities and Exchange Board of India) in indian Stock Market.  Market Maker is typically an institution which is appointed by Stock Exchange to increase and meet demand-supply of shares in Stock Market. The Market Maker places buy-and-sell call at the same time for a specific time period for a guaranteed number of shares.  So, 'buy / sell' requirement of investor/trader is fulfilled by Market Maker's own holding or inventory of stocks. The Market Maker books profit by the difference between buy-call and sell-call placed by him.  Suppose the Market Maker places a quote of Rs.500-450, which means that the Market Maker will buy stock at R
Read more

Honesty is a very Expensive Gift. Do not expect it from Cheap People.

-
Image
The title of this article is quoted by Warren Buffett & this is a harsh truth in every sphere of our life. Most of the people in this world are working very hard to earn money for living a life full of happiness & joy. They wish to fulfil their dreams and imaginations. Money is the most useful power which can do almost everything in this world. Hence, they invest their savings in the expectation of handsome return. No one  will be happy in losing his hard-earned money in poor investment. The most common & big mistake we do in our life is nothing but investing our money as per advice of any person, broker or agency without any verification of their offer. Sometimes, agents or brokers intentionally involve their customers in poor investment plan for getting more interset or commission. They misguide their customer with fake promise for their own benefit & consequently, the investor loses his hard-earned money. A huge market-research is required for verifi
Read more