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: