Equity Funds
Equity Funds
These are fund where the pooled money of the investors invested in listed securities (shares) of various companies, hence the investment goes in to listed securities the mutual fund will become part owner of the company which means the fund bear both the profit and loss of the company.
In this there are various categorization defined by the SEBI (Security exchange board of India) where the investor can choose according to their requirements and risk appetite.
S.no | Fund type | Definition – Market cap |
1 | Large cap | All companies which ranks between 1 – 100 on market cap are called large cap |
2 | Midcap | All companies which ranks between 101 – 250 is called mid cap |
3 | Small cap | All companies which ranks between 251 and above is called small cap |
According to the above categorization large cap funds of mutual funds invest money only in large cap companies, midcap funds invest only in midcap funds and small cap companies invest only in small cap companies.
