Types of Equity Funds in India

Types of Equity Funds in India

Large-Cap Equity Funds

Invest in large companies with stable returns and lower risk. Ideal for conservative investors.

Mid-Cap Equity Funds

Target medium-sized companies with high growth potential but moderate risk. Suitable for investors looking for growth.

Small-Cap Equity Funds

Focus on small companies with high growth potential and higher risk. Best for aggressive investors.

Multi-Cap Equity Funds

Invest across large, mid, and small-cap companies, providing a balanced approach. Good for diversified investments.

Sectoral/Thematic Funds

Concentrate on specific sectors or themes like technology, healthcare, or finance. Higher risk with potential high returns.

ELSS (Equity Linked Savings Scheme)

Offer tax benefits under Section 80C with a three-year lock-in period. Suitable for tax-saving and long-term growth.

Index Funds

Mirror the performance of a market index like Nifty or Sensex. Lower management fees and moderate risk.

Focused Funds

Invest in a limited number of stocks, typically around 30, providing higher concentration risk but potential for significant returns.

Dividend Yield Funds

Focus on stocks offering high dividend yields. Provide regular income and potential for capital appreciation.