Equity Mutual Funds

The objective of an equity fund is generally to seek long-term capital appreciation. Equity funds may focus on certain sectors of the market or may have a specific investment style, such as investing in value or growth stocks.

An equity scheme is a type of fund that:

  • Mostly invests in stocks and things related to stocks.
  • Aims for long-term growth, but might have ups and downs in the short term.

Equity Fund Categories as per SEBI guidelines on Categorization and Rationalization of schemes

Category Rational
Multi Cap Fund At least 75% investment in equity & equity related instruments
Flexi Cap Fund At least 65% investments in equity & equity related instruments
Large Cap Fund At least 80% investment in large cap stocks
Large & Mid Cap Fund At least 35% investment in large cap stocks and 35% in mid cap stocks
Mid Cap Fund At least 65% investment in mid cap stocks
Small cap Fund At least 65% investment in small cap stocks
Dividend Yield Fund Predominantly invest in dividend yielding stocks, with at least 65% in stocks
Value Fund Value investment strategy, with at least 65% in stocks
Contra Fund Scheme follows contrarian investment strategy with at least 65% in stocks
Focused Fund Focused on the number of stocks (maximum 30) with at least 65% in equity & equity related instruments
Sectoral/ Thematic Fund At least 80% investment in stocks of a particular sector/ theme
ELSS At least 80% in stocks in accordance with Equity Linked Saving Scheme, 2005, notified by Ministry of Finance