What are equity-oriented schemes in mutual funds?
Equity-oriented mutual fund schemes primarily invest in shares of listed companies and equity-linked instruments. These funds aim for capital appreciation by participating in the long-term growth of businesses across sectors and market capitalisation.
They are designed for investors with a higher risk appetite and a longer investment horizon, as equity markets can be volatile in the short term but potentially rewarding over time.
Key features of equity-oriented schemes
- Invest over 65% of assets in equity or equity-related securities
- Suitable for long-term wealth creation
- Carry higher market risk, but offer higher return potential
- Categorised by investment style—large-cap, mid-cap, multi-cap, sectoral, ELSS, etc.
What if...
| Scenario | Explanation |
|---|
| You invest with a 1-year horizon | Equity funds may not suit short-term goals due to volatility. |
| You want tax-saving benefits | ELSS (Equity Linked Savings Scheme) funds offer tax deductions under Section 80C. |
| You panic during market corrections | Equity funds require patience; use SIPs to average out costs. |
| You seek diversification | Multi-cap or Flexi-cap equity funds offer exposure across market caps. |
Ideal for investors who can stay invested through market cycles and are looking for capital growth.
Last updated: 16 Jun 2025
Related Articles
What are debt-oriented schemes in mutual funds?
Debt-oriented mutual fund schemes—also called income funds—primarily invest in fixed-income instruments such as government securities, corporate bonds, debentures, commercial papers, and treasury bills. These schemes aim to generate regular income ...
What are closed-ended funds/schemes in mutual funds?
Closed-ended mutual fund schemes are structured investment options that accept subscriptions only during a fixed period known as the New Fund Offer (NFO). These schemes have a predetermined maturity date—typically between 3 to 5 years—and do not ...
Is exit load a standard charge across all mutual funds?
No, exit load is not a universal or standard charge across all mutual fund schemes. Whether an exit load is applicable, and the percentage charged, depends entirely on the scheme’s structure as defined by the Asset Management Company (AMC). While ...
What are Direct Mutual Funds on FYERS?
When investing in mutual funds through FYERS, you'll notice the term Direct Mutual Funds. These funds offer the same portfolio as regular plans but without distributor commissions, often resulting in better returns over the long term. What are Direct ...
What are balanced/hybrid funds in mutual funds?
Balanced or hybrid mutual fund schemes are designed to offer a mix of equity and debt investments within a single portfolio. These funds aim to generate moderate returns by balancing capital growth (via equities) with income stability (via debt ...