{"id":24904,"date":"2024-07-10T07:56:00","date_gmt":"2024-07-10T02:26:00","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=24904"},"modified":"2025-04-07T14:03:31","modified_gmt":"2025-04-07T08:33:31","slug":"what-is-equity-mutual-funds","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/what-is-equity-mutual-funds\/","title":{"rendered":"What is Equity Mutual Funds?"},"content":{"rendered":"<h2>About Equity Mutual Funds:<\/h2>\n<ul>\n<li>It is a type of investment fund that <strong>pools money <\/strong>from investors <strong>to trade primarily a portfolio of stocks<\/strong>, also known as <strong>equity securities.<\/strong><\/li>\n<li>They are also known as <strong>Growth Funds.<\/strong><\/li>\n<li>Equity Funds are <strong>either Active or Passive<\/strong>.\u00a0\n<ul>\n<li>In an <strong>Active Fund<\/strong>, a <strong>fund manager scans the market, conducts research on<\/strong> companies, examines <strong>performance,<\/strong> and <strong>looks for the best stocks<\/strong> to invest.<\/li>\n<li>In a <strong>Passive Fund<\/strong>, the fund manager builds a<strong> portfolio<\/strong> that <strong>mirrors a popular market index<\/strong>, say Sensex or Nifty Fifty.<\/li>\n<\/ul>\n<\/li>\n<li>The <strong>fund manager <\/strong>has a <strong>passive role in stock selection<\/strong>.<\/li>\n<li>Buy, hold, or sell<strong> decisionsaredriven by the benchmark index,<\/strong> and the fund manager merely needs to replicate the same with minimal tracking error.<\/li>\n<li>Equity Funds can also be <strong>divided as per Market Capitalisation<\/strong>, i.e., how much the capital market values an entire company\u2019s equity.\n<ul>\n<li>There can be <strong>Large Cap, Mid Cap, Small or Micro Cap Funds.<\/strong><\/li>\n<\/ul>\n<\/li>\n<li>There can be a further classification as <strong>Diversified or Sectoral \/ Thematic.<\/strong>\n<ul>\n<li><strong>In the former<\/strong>, the scheme invests in <strong>stocks across the entire market spectrum<\/strong>, while in the <strong>latter,<\/strong> it is <strong>restricted to only a particular sector<\/strong> or theme, say, Infotech or Infrastructure.<\/li>\n<\/ul>\n<\/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:\/\/timesofindia.indiatimes.com\/city\/bengaluru\/record-high-equity-mutual-fund-inflows-in-june\/articleshow\/111617652.cms\" target=\"_blank\" rel=\"nofollow noopener\">Inflows to equity MFs hit record high in June<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Inflows into India\u2019s equity mutual funds rose 17% sequentially to a record high of Rs 40,608 crore in June, data from the Association of Mutual Funds in India (AMFI) showed recently.<\/p>\n","protected":false},"author":5,"featured_media":24905,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-24904","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\/24904","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=24904"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/24904\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/24905"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=24904"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=24904"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=24904"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}