Regarding Equity diversified Mutual Funds

POSTED BY satheesh ON October 16, 2013 9:05 am COMMENTS (3)

Hi ,

I want to know about Diversified equity mutual funds which all advisors suggest.Can u explain more about this?

3 replies on this article “Regarding Equity diversified Mutual Funds”

  1. satheesh says:

    Thanks Ashal and Sumit

  2. Sumit says:

    Hi,

    The purpose of mutual fund is to diversify your investment, so in that sense every mutual fund is diversified.
    Fund Manager creates a portfolio for us to invest is say 20 – 40 stocks across different sectors, and thus its less risky than just investing in a couple of stocks.
    Equity mutual funds invest significantly in equity – and can be classified as Large Cap funds, Large and Mid Cap Funds,Mid Cap and Small Cap Funds, Sector Fund etc.
    Debt fund can be categorized as below – Liquid Funds, Short term plans, Income funds,Gilt Funds, Dynamic Bond Funds etc.
    Mutual funds also can be diversified between asset classes, like balanced funds invest in a mix of equity and debt component. Some hybrid funds invest in equity, debt and gold as well.
    To know more about different types of mutual fund you can go through the following link –
    http://www.behealthyinvestor.com/mutual-fund-basics-types-of-mutual-fund/

    Thanks
    Sumit

  3. ashalanshu says:

    Dear Satheesh, Eq. diversified mutual funds invest your money in different stocks. On the basis of holdings, these MFs can be sub-classified as large Cap, Midcap, Smallcap, Multicap. All Eq. funds are diversified in a sense as your money is invested in 25-100 stocks. There are sectoral funds also, which although diversified that money is invested in several stocks but all the stocks are from same sector, hence can not be called true diversified.

    Thanks

    Ashal

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