{"id":17031,"date":"2023-11-16T04:13:50","date_gmt":"2023-11-15T22:43:50","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=17031"},"modified":"2025-04-05T01:41:10","modified_gmt":"2025-04-04T20:11:10","slug":"equity-funds","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/equity-funds\/","title":{"rendered":"Equity funds"},"content":{"rendered":"<h2>About Equity funds<\/h2>\n<ul>\n<li>An equity fund is a mutual fund that\u00a0invests principally in stocks.<\/li>\n<li>It can be actively or passively (index fund) managed. Equity funds are also known as stock funds.<\/li>\n<li>Stock mutual funds are principally categorized according to company size, the investment style of the holdings in the portfolio and geography.<\/li>\n<\/ul>\n<h2>What are Active equity funds?<\/h2>\n<ul>\n<li>In this fund the\u00a0fund manager is \u2018Active\u2019 in deciding whether to buy, hold, or sell the underlying securities and in stock selection.<\/li>\n<li>This\u00a0fund relies on professional fund managers who manage investments.<\/li>\n<li>Active funds adopt different strategies and styles to create and manage the portfolio.<\/li>\n<li>They are expected to generate better returns (alpha) than the benchmark index.<\/li>\n<li>The risk and return in the fund will depend upon the strategy adopted.<\/li>\n<\/ul>\n<h2>What are Passive equity funds?<\/h2>\n<ul>\n<li>These funds hold a portfolio that\u00a0replicates a stated index or benchmark.<\/li>\n<li>In a passive fund, the fund manager has a passive role in the stock selection.<\/li>\n<li>Buy, hold or sell decisions are\u00a0driven by the benchmark index and the fund manager\/dealer merely needs to replicate the same with minimal tracking error.<\/li>\n<\/ul>\n<hr \/>\n<h3>Q1) What are Mutual funds?<\/h3>\n<p>Mutual funds are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities. They&#8217;re managed by professional fund managers or management teams who make investment decisions based on the fund&#8217;s objectives.<\/p>\n<p><strong>Source:<\/strong> <a href=\"https:\/\/indianexpress.com\/article\/explained\/explained-economics\/active-passive-equity-funds-9025381\/\" target=\"_blank\" rel=\"nofollow noopener\">What are active and passive equity funds \u2014 and how much inflows did they receive in the July-Sept quarter?<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Equity funds is a mutual fund that invests principally in stocks.<\/p>\n","protected":false},"author":5,"featured_media":17032,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-17031","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/17031","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=17031"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/17031\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/17032"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=17031"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=17031"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=17031"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}