Best Equity Mutual Funds 2022

 Invest In Equity Mutual funds?

Finvoy - a professional managed company - shall help you with all the details about equity mutual funds you require
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Equity Mutual Fund Distributor in Mumbai

You know mutual funds are a popular low-risk investment option. But is there a mutual fund that offers higher returns than others?Yes, Equity Mutual Funds offer the highest returns because these funds invest in the stock market and potentially earn a higher return than investment in safer instruments such as bonds.Here is all you need to know about mutual funds and Equity Mutual Funds in particular:to it being comparatively less risky. At the same time, mutual funds can give more returns than a debenture (bond) market or fixed deposit.Here, we will talk about Equity Mutual Funds and who should invest in them.

What are Equity Mutual funds?

A mutual fund collects funds from people and invests it in the stock market. Equity mutual funds try to generate higher returns by investing in the stocks of companies across all market segments and capitalizations.

Types of Equity Mutual Funds

There are primarily two types of mutual funds:
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Based on Sector and Themes

This type of Equity Funds are invested in specific industries such as FMCG, pharma, or technology known as Sector Funds or Thematic Funds. They follow one particular sector or theme such as emerging “consumer companies” or “international stocks.” As sector funds or thematic funds focus on a single sector or theme, they tend to be riskier simply because their performance face sectoral as well as market risks.

Based on Market Capitalisation
  • Large-cap equity funds: Investment in companies with large market capitalization. They offer low but more stable returns.
  • Mid-cap equity funds: These funds invest in medium-sized companies. Mid-cap equity funds are not as stable as large-cap funds.
  • Small-cap funds: These funds invest in shares of small-cap funds that are more prone to market risks but on the flip side the returns might be extraordinarily high.
  • Multi-cap funds: Multi-cap funds invest in stocks across all market capitalisations.
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How risky is an Equity Mutual Fund?

Equity Mutual Funds are the riskiest type of mutual funds but they have the potential to provide higher returns than debt and hybrid funds. The performance of the invested company plays a crucial role in deciding the investors’ returns.

Benefits

There are several advantages of investing in equity funds. Here are a few of them:

  • Your money is managed by money market experts

  • More convenient than investing in diverse stocks

  • Helps diversify investment portfolio, reduce risks

  • low-risk and systematic investment scheme

  • Relatively flexible, liquid, easy to work with

How do Equity Funds perform?

Among all types of mutual funds, equity funds deliver the highest returns. On average, equity funds have generated returns in the range of 10% to 12%. The returns do fluctuate depending on the market trends and overall economic situation. To earn your desired returns, you need to choose your equity funds carefully. For that, you have to strictly follow the stock markets and possess knowledge of the quantitative and qualitative factors.

Equity Mutual fund distributors in Mumbai can assist by handpicking the investment portfolios with the best potential for your financial goals.

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Taxation on gains from Equity Mutual Funds

Short-term capital gains (STCG) are taxable at the rate of 15%. While a tax rate of 10% is applicable for long-term capital gains (LTCG) on equity holdings if the gains exceed Rs 1 lakh a year.

Why Choose Finvoy?

Finvoy has been the pioneer in online investment services in Mumbai. The financial market is no doubt extremely profitable but it's risky as well. So, you need the assistance of an expert Equity mutual fund distributor in Mumbai to hold your hand and help you invest smartly.

Our financial advisors are adept at assessing the risks and opportunities associated with the equity mutual fund market and strive to perform their best in tailoring an investment approach that suits the clients' risk profile.

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In Conclusion

Mutual Funds are low risk and high-return investments. You can choose mutual funds in alignment with short and long terms financial goals.

The Covid-19 pandemic has significantly impacted the income of average households, especially in Mumbai where many lone breadwinners suffered financial uncertainties. Some lost their jobs while many others faced the brunt of salary cuts. It made people realise the importance of savings.

In this backdrop, choosing Equity Mutual Funds to invest your money can bring the benefits of both mutual funds and the equity market.

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