Best Equity Mutual Funds 2022
Invest In Equity Mutual funds?
Fund Pinnacle - a professional managed company - shall help you with all the details about equity mutual funds you require
Equity Mutual Fund Distributor in Mumbai
You know mutual funds are a popular low-risk investment option. But is there a mutual fund that offers higher returns than others?Yes, Equity Mutual Funds offer the highest returns because these funds invest in the stock market and potentially earn a higher return than investment in safer instruments such as bonds.Here is all you need to know about mutual funds and Equity Mutual Funds in particular:to it being comparatively less risky. At the same time, mutual funds can give more returns than a debenture (bond) market or fixed deposit.Here, we will talk about Equity Mutual Funds and who should invest in them.
What are Equity Mutual funds?
A mutual fund collects funds from people and invests it in the stock market. Equity mutual funds try to generate higher returns by investing in the stocks of companies across all market segments and capitalizations.
Types of Equity Mutual Funds
There are primarily two types of mutual funds:
Based on Sector and Themes
This type of Equity Funds are invested in specific industries such as FMCG, pharma, or technology known as Sector Funds or Thematic Funds. They follow one particular sector or theme such as emerging “consumer companies” or “international stocks.” As sector funds or thematic funds focus on a single sector or theme, they tend to be riskier simply because their performance face sectoral as well as market risks.
Based on Market Capitalisation
- Large-cap equity funds: Investment in companies with large market capitalization. They offer low but more stable returns.
- Mid-cap equity funds: These funds invest in medium-sized companies. Mid-cap equity funds are not as stable as large-cap funds.
- Small-cap funds: These funds invest in shares of small-cap funds that are more prone to market risks but on the flip side the returns might be extraordinarily high.
- Multi-cap funds: Multi-cap funds invest in stocks across all market capitalisations.
Taxation on gains from Equity Mutual Funds
Short-term capital gains (STCG) are taxable at the rate of 15%. While a tax rate of 10% is applicable for long-term capital gains (LTCG) on equity holdings if the gains exceed Rs 1 lakh a year.
Why Choose Fund PINNACLE?
Fund Pinnacle has been the pioneer in online investment services in Mumbai. The financial market is no doubt extremely profitable but it's risky as well. So, you need the assistance of an expert Equity mutual fund distributor in Mumbai to hold your hand and help you invest smartly.
Our financial advisors are adept at assessing the risks and opportunities associated with the equity mutual fund market and strive to perform their best in tailoring an investment approach that suits the clients' risk profile.
Mutual Funds are low risk and high-return investments. You can choose mutual funds in alignment with short and long terms financial goals.
The Covid-19 pandemic has significantly impacted the income of average households, especially in Mumbai where many lone breadwinners suffered financial uncertainties. Some lost their jobs while many others faced the brunt of salary cuts. It made people realise the importance of savings.
In this backdrop, choosing Equity Mutual Funds to invest your money can bring the benefits of both mutual funds and the equity market.