Equity fund is one of the oldest and most widely found fund types of mutual fund. Technically, a mutual fund scheme that has more than 65% of its total investments in equities and other equity linked products is regarded as an equity fund. so the schemes like sector schemes, growth schemes, tax saving schemes are primarily equity schemes.
Diversified Equity funds diversify their portfolio evenly across stocks and industry sectors. The returns from them tend to be moderately high over a long-term horizon but since the prices of equity shares fluctuate on the stock markets, the net asset value is subject to these fluctuations.
These funds suit investors who have moderate risk appetite. In a diversified fund, the risk of down-side is mitigated by the breadth of variety of stocks in the portfolio.
Since the portfolio is diversified, the under-performance in some stocks or sectors in which the fund has invested is balanced by the superior performance of other stocks or sectors.
Such schemes are designed for the investors who have an investment horizon of at least 3 to 5 years and are also willing to take some risk, though the risk appetite may not be too big.
There is a lot of buzz of equity funds since all fund houses have multiple equity funds. So here we are making an attempt to compare diversified equity funds of various fund houses.
Diversified Equity funds diversify their portfolio evenly across stocks and industry sectors. The returns from them tend to be moderately high over a long-term horizon but since the prices of equity shares fluctuate on the stock markets, the net asset value is subject to these fluctuations.
These funds suit investors who have moderate risk appetite. In a diversified fund, the risk of down-side is mitigated by the breadth of variety of stocks in the portfolio.
Since the portfolio is diversified, the under-performance in some stocks or sectors in which the fund has invested is balanced by the superior performance of other stocks or sectors.
Such schemes are designed for the investors who have an investment horizon of at least 3 to 5 years and are also willing to take some risk, though the risk appetite may not be too big.
There is a lot of buzz of equity funds since all fund houses have multiple equity funds. So here we are making an attempt to compare diversified equity funds of various fund houses.