CAFS Equity

Equity Funds

Invest in potential business at your fingertips. Equity funds help take advantage of profit-making businesses through investing while sitting at home.



    Equity Funds

    Equity funds consist of investment in stocks of companies. These investments are further taken to the business capital of each company. Equity funds are generally known as risky investments. These funds are highly volatile on the market conditions. These situations will hugely impact the price of the stocks. The investor hast to analyse properly before investing in equity funds.

    Who should buy Equity funds

    Equity funds are highly suitable for investors who look for high returns. It is a fact that high returns are always associated with high risk. The investor must be ready to manage the risk the same way he looks at the returns associated with the investments.

    Equity funds generally gain returns with the increase in market value of the stocks. When the company performs well the market demand increases and buyer tend to pay more than the current price of the stock.

    The stock is also eligible for dividends which are the share from the company’s profit. These dividends are generally given to the investors as a share from the profit. In equity funds the dividends are added to the value of the mutual fund units.

    Facts to be considered for choosing an Equity funds

    As equity funds are associated with high amount of risk factor. It is advised to consider certain facts before analysing the equity fund before investing. Such Factors are listed below.

     

    Portfolio

    Portfolio is the list of investments made on the name of the equity fund. This portfolio differs from each fund. The funds future performance can be analysed from the investments present in the portfolio. It is advised to the investor to analyse the portfolio before investing.

     

    Risk

    Risk factor is associated with any investments made by the investor. The risk is an important factor that has to be considered before investing. In genral high risk is always associated with high returns. Risk becomes a considerable factor as the demand for stock goes high and low every day in the market.

     

    Market condition

    Markest condition is the main reason why the prices of equity increases and decreases. The market condition is always volatile at least by a small amount as the intentions of the buyers and sellers change every time. The inventor has to analyse the market condition properly before choosing a mutual fund.