You should consider your risk appetite and investment horizon while investing in equity funds. One can also sell units of the MF to earn capital gains. The dividend that is earned from the stocks of companies that the fund invest in is paid to the investors. This fee goes towards the management of the fund. This is charged from each investor and it can range anywhere between 0% and 2%. ![]() The equity mutual fund will earn money in the form of the expense ratio. Moreover, equity mutual funds can build value by making profitable investments and dividend payment. Since equity mutual funds invest in multiple companies, it offers instant diversification, thereby lowering an individual’s risk. Moving ahead, an asset management company invests this corpus in stocks or equities of listed companies. ![]() In the case of equity mutual funds, there are numerous individuals who invest different amounts, creating a large pool of money.
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