Understanding Types of Equity Mutual Funds – Make Informed Decisions

Definition: Fund corpus is invested in stocks of well-established and large companies
Characteristics: Lower risk and stable returns
Ideal for: Conservative investors with low-risk appetite seeking consistent and stable performance

Definition: Fund corpus is invested in stocks of medium-sized companies with growth potential
Characteristics: Moderate risk with higher growth potential than large-cap funds
Ideal for: Investors with moderate risk tolerance with a long-term investment horizon

Definition: Fund corpus is invested in smaller companies with high growth prospects
Characteristics: High risk with potential for significant returns but can be volatile
Ideal for: Aggressive investors with higher risk appetite aiming to maximize growth

Definition: Multi-cap funds invest in stocks of large, mid, and small-cap companies
Characteristics: Diversified portfolio that offers exposure to companies of varying sizes, potentially mitigating investment risk
Ideal for: Investors seeking balanced investment options

Definition: Fund corpus is invested in stocks of companies in specific sectors like healthcare, technology, and others
Characteristics: High risk and reward potential with fund performance directly depending on the chosen sector; investors should monitor sectoral trends
Ideal for: Investors who want targeted exposure to a particular industry

Definition: Fund corpus is invested in stocks that pay consistent and regular dividends
Characteristics: Offers regular income with stable returns
Ideal for: Investors who need periodic payouts on their investments

Definition: Fund corpus is invested in underperforming stocks
Characteristics: Focused on fundamental analysis with a potential for long-term growth
Ideal for: Investors who believe in the potential value appreciation of undervalued stocks

Definition: Growth funds invest in stocks expected to experience above-average growth
Characteristics: Higher risk, potential for capital appreciation, may not offer regular dividends
Ideal for: Investors seeking long-term capital growth with a higher risk appetite willing to withstand market volatility

Definition: Fund corpus is invested in the stocks included in the specific market index
Characteristics: Passively managed, low expense ratios, and broad market exposure
Ideal for: Passive investors aiming for a cost-effective way to gain market exposure

Definition: Thematic funds focus on specific themes or trends, such as technology, healthcare, or sustainable investing
Characteristics: Targeted exposure, potential for high returns, sector-specific risks
Ideal for: Investors seeking to invest in specific industries or trends