An equity fund is one that is invested mainly in a company’s equity through the stock exchange and is exposed to the risk of volatility associated with the equity market. Although this fund is the riskiest within the genre of mutual funds, it is also known to provide the maximum yields and dividends.
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Mutual Fund Basics
A Mutual Fund is a pool of money that gives investors access to a well-diversified portfolio of stocks, bonds, and other securities. Each shareholder participates in the gain or loss of the fund. Shares are issued and can be redeemed as needed (in the case of an open-ended fund). The fund's net asset value (NAV) is determined each day and is posted on the respective Asset Management Company’s website on a daily basis.
