So far in the series, we’ve discussed why you should invest, some basic math you need to know, and the importance of a mutual fund fact sheet. Once you decide to invest and have an idea of your goals and the duration of those goals, there are 2 important asset classes that you’ll need to invest in: equity and debt. The best way to get exposure to these asset classes is through mutual funds.
As the name implies, an equity mutual fund invest in stocks of listed companies. When you buy an equity mutual fund, you are getting exposure to all the companies inside that fund. In this video, @Karthik explains, how an equity fund works, the right expectations to have when investing in an equity fund, and the types of equity funds.
To learn more about equity funds, check out this chapter:
@ShubhS9 Are there STT charges on equity oriented fund as mentioned on AMFI?? " 1. Securities Transaction Tax (‘STT’) is applicable only in respect of sale of units of Equity-oriented funds (EOFs) on a recognised stock exchange and on repurchase (redemption) of units of EOFs by the mutual fund. STT in not applicable in respect of purchase/ sale/ redemption of units of other schemes (other than EOFs)" https://www.amfiindia.com/investor-corner/knowledge-center/tax-corner.html Are these are same equity funds that are on coin or different?
@ShubhS9 Are there any mutual funds that engage in options trading to generate returns? Or are there any Portfolio Management Services (PMS) or Alternative Investment Funds (AIF) that do the same?
