Equity

Equity schemes primarily invest in shares. Based on the objective investments could be in growth stocks where earnings growth is expected to be high or value stocks where the view of the fund manager is that current valuations in the markets do not reflect the intrinsic value.

Equity Linked Saving Schemes (ELSS):

Mutual Fund schemes investing predominantly in equity, and which offer tax deduction to investors under section 80 C of the Income Tax Act. Currently tax deduction u/s 80C can be availed up to a maximum investment of Rs 1, 00,000/-. A lock-in of 3 years is mandatory.

Diversified Equity Fund:

A mutual fund scheme that achieves the benefits of diversification by investing in the stocks of companies across a large number of sectors. As a result, it minimizes the risk of exposure to a single company or sector.

Index Fund:

One of the easiest ways to mirror the performance of markets is by investing in the Index Fund for it endeavours to replicate the performance of the Indices such as the BSE Sensex or the S&P CNX Nifty. The costs are lower and the portfolio, well diversified.