What is An Equity-Oriented Fund, And How Does it Differ From Other Types of Mutual Funds

Introduction

When it comes to investing in mutual funds, there are many different types to choose from, each with its own set of characteristics and risks. One type of mutual fund that has gained popularity in recent years is the equity-oriented fund. In this blog post, we’ll explore what an equity-oriented fund is, how it differs from other types of mutual funds, and provide an overview of the best fund managers in India.

What is an Equity-Oriented Fund

An equity-oriented fund is a type of mutual fund that primarily invests in stocks or equity-related instruments. These funds typically have a minimum investment of 65% of their total assets invested in equity and equity-related instruments. This makes them a good option for investors looking to gain exposure to the stock market but who do not want to invest in individual stocks or manage their own portfolios.

Equity-oriented funds can invest in a range of companies, including blue-chip stocks, mid-cap stocks, and small-cap stocks. The objective of these funds is to generate long-term capital appreciation for investors by investing in a diversified portfolio of equities.

How Does an Equity-Oriented Fund Differ From Other Types of Mutual Funds?

One of the key differences between equity-oriented funds and other types of mutual funds is the level of risk. Because these funds primarily invest in stocks, they tend to be riskier than other types of mutual funds, such as bond funds or money market funds. However, they also have the potential for higher returns over the long term.

Another key difference is the level of diversification. Equity-oriented funds can invest in a range of stocks and sectors, which can help to spread risk across different types of investments. This can make them a good option for investors who want exposure to the stock market but who do not want to invest in individual stocks.

Introducing the Best Fund Managers in India

When it comes to investing in equity-oriented funds, selecting the right fund manager is critical to achieving your investment goals. Some of the best fund managers in India include S. Naren, Prashant Jain, and Anoop Bhaskar. S. Naren, the chief investment officer of ICICI Prudential AMC, is known for his expertise in value investing and has been recognized with numerous awards for his performance. Prashant Jain, the chief investment officer of HDFC Mutual Fund, is known for his long-term investing approach and has been managing some of the best-performing funds in India for more than a decade. Anoop Bhaskar, the head of equities at IDFC Mutual Fund, has been recognized for his expertise in mid-cap investing and has delivered strong returns for investors.

Final Thoughts

Investing in an equity-oriented fund can be an effective way to gain exposure to the stock market and potentially earn higher returns over the long term. However, as with any investment, it’s important to do your research and understand the risks and benefits before investing your hard-earned money. Consider speaking with a financial advisor to determine if an equity-oriented fund is right for your investment goals and risk tolerance, and be sure to select a reputable fund manager, such as S. Naren, Prashant Jain, or Anoop Bhaskar, to manage your investment.