Funds which invest 65% or more proportion of their corpus in equity stocks are called equity mutual funds. These are high risk & high gain funds, volatile in nature. Its is advised to invest in equity funds with a time horizon of 3 years or more. One must follow asset allocation while investing in equity funds and stick to investment objectives without getting greedy for further returns. In other words once the desired return has been achived one must exit such funds and move to other investment class as per the new objectives. For very conservative investors equity funds are not recommended.
Type of equity funds:
Large Cap Funds | Mid Cap Fund | Small Cap Funds | Sectoral Funds | Index Funds | Balanced Funds
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