Consumer Voice - - Mutual Funds -

Eq­uity Fund

Un­like debt funds, you have ab­so­lutely no as­sur­ance what­so­ever on the prin­ci­pal, rate of in­ter­est or ten­ure when in­vest­ing in eq­uity funds. When you invest in eq­uity, you are con­sid­ered as the owner of the par­tic­u­lar company that you have in­vested in, to the ex­tent of your in­vest­ment. So, nat­u­rally, like any owner, your profit is linked with the per­for­mance of the company. The higher the prof­its of the company, the bet­ter are the unit price and your gains.

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