Definition Of Equity Oriented Mutual Funds

Index funds and etfs are passively managed.

Definition of equity oriented mutual funds. What are equity funds. As per current income tax rules an equity oriented fund means a mutual fund scheme where the investible funds are invested in equity shares in domestic companies to the extent of more than 65 of the total proceeds of such fund. Over the past years mutual funds have gained increasing popularity as an effective alternative investment solution for keeping a portfolio balanced especially in times of financial uncertainty. 1 the investible funds are invested by way of equity shares in domestic companies to the extent of more than 65 of the total proceeds of such fund.

An equity fund can be actively managed or passively managed. The type of mutual fund schemes investing their assets into shares stocks of different companies across market capitalisation with an objective of generating higher returns is called equity mutual funds. As regulated by sebi equity oriented funds invest at least 65 of the corpus into equity related instruments and a minimum of 10 into debt. Stock mutual funds are.

Mutual funds are largely open ended funds financed by different investors who invest in a group of assets to meet common investment objectives. An equity fund is a mutual fund that invests principally in stocks. As such the portfolio of equity oriented funds will be skewed in favor of equity investments. Equity funds are also known as stock funds.

Click here to know the various types of equity oriented mutual funds based on market capitalization. In tax perspective these funds will be considered as equity funds hence long term capital gain tax will be nill for holdings over one year. In this section view different types of equity mutual fund schemes ideal to meet your investment goals offered by edelweiss mutual fund. It can be actively or passively index fund managed.

Equity oriented mutual funds are the funds which invest minimum of 65 in shares equities and remaining in debt securities. Means a fund which satisfies the following. The equity oriented fund is a type of mutual fund scheme that invests mainly in equity stocks.