Comparison of Various Types of Equity Funds
Investment with mutual fund is associated with market risk. Equity funds are most risky funds. Here I am trying to compare various types of equity funds to help the investors.
| Factors | Types of Equity Funds | |||||
|---|---|---|---|---|---|---|
| Sector Funds | Growth Funds | Diversified Equity Funds | Thimatic Funds | Index Funds | Equity Linked Saving Schemes | |
| Investment Objective | Concentrates on single sector market for investment | Capital appreciation in 3 to 5 years | Can invest across various sectors | Invest into themes like pharma, infracture etc. | To mirror the selected index | Minimum investment of 90% in equity markets at all time |
| Risk | High Risk | High Risk | Average Risk | Above average Risk | Market Risk | High Risk |
| Return on Investment | High | High | High | High | Related to Market | High |
| Asset Allocation | Selected Sector only | Diversified across all sectors | Diversified across all sectors | Diversified across as per theme | Most diversified | Diversified across all sectors |
| Liquidity | Yes | Yes | Yes | Yes | Yes | 3 years lock-in period |
| Features | Investment into stocks of a certain business or industry. More volatile. | Investment into companies with promise of strong growth in comming years | Try to provide best return at per unit of risk taken by the investor | Invest in companies of said theme | A passive fund style | Eligible under Section 80 C as per Income Tax Rule |
| Type of Investor | Aggressive | Aggressive | Aggressive | Aggressive | Conservative | Aggressive, seeking tax rebate |