Equity Funds are mutual funds that invests primarily in stocks of companies. These funds pools money from investors to buy shares across different sectors. The aim is to build long term wealth but remember, equity funds carries high risk. Stock prices fluctuates daily and in short term, value can go down significantly. You can lose capital during market corrections. Types include Large Cap, Mid Cap and ELSS. These funds are only for investors with long horizon of 5 years or more. If you cannot handle market volatility and risk of loss, these are not for you.
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