![]() They research and analyze various technical and fundamental indicators such as the profitability of any company, its ability to survive challenging phases in the economy, the sector in which it operates, etc. These are professionals with expertise in markets and finance. This is where the role of the Fund Manager and his team comes into play. The next step is for the Fund to decide which stocks to pick from this universe. So, once the fund category is defined, the investment universe of an Equity Fund is defined.Similarly, Mid Cap Funds have to invest at least 65% of their total assets in India's mid-sized companies. Read more about What is large cap funds?. ![]() For example, Large Cap Funds have to invest at least 80% of their corpus in the top 100 companies in India by capitalization (these companies are called large-cap companies). Equity Funds by regulation are categorized based on either their investment style or their investing universe, and they have to stick to rules defined for that particular category by SEBI. The stock an Equity Fund will invest in depends on two things.So, by investing in an equity fund, an investor is a part-owner of the company the fund has invested in. Equity funds predominantly invest in equity shares (stocks) of various companies.
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