Thursday, December 1, 2016

investing through equity mutual funds

Equity mutual funds invest in equity stocks to meet the objective of growth. These mutual funds are managed by professional fund managers who decide the stocks (largecap, midcap, smallcap) to be included in the portfolio of their schemes. The costs of managing the portfolio by fund managers are borne by the mutual fund scheme. Investors do not directly hold the securities, though they are the beneficiaries of these investments. Thus, through mutual funds, investors can get the exposure to the equity market without direct intervention.

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