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 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 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.
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.