{"id":22161,"date":"2021-10-01T05:02:05","date_gmt":"2021-10-01T05:02:05","guid":{"rendered":"https:\/\/www.tatacapital.com\/blog\/?p=22161"},"modified":"2025-07-14T10:50:53","modified_gmt":"2025-07-14T10:50:53","slug":"5-benefits-of-investing-in-equity-mutual-fund","status":"publish","type":"post","link":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/equity-funds\/5-benefits-of-investing-in-equity-mutual-fund\/","title":{"rendered":"5 Benefits of Investing in Equity Mutual Fund"},"content":{"rendered":"\n

<\/p>\n\n\n\n

Equity mutual funds invest predominantly in the stocks of a company, as much as 65% of their corpus. These funds have quite the reputation for offering high returns, but which comes at the price of high risk. The hesitancies surrounding these funds exist due to misinformation and myths circulating in MF circles, both online and offline.<\/p>\n\n\n\n

Equity funds are not \u2018one-size-fits-all\u2019 funds. There are various kinds of equity funds, each classified by their investment objective and mapped to the investor\u2019s risk profile \u2013 small-cap<\/a>, thematic<\/a>, ELSS<\/a>, etc.<\/p>\n\n\n\n

Upon closer look, you\u2019ll discover that equity funds are worth taking the risk after all. Look at some of the top benefits.<\/p>\n\n\n\n

1. They offer high returns<\/strong><\/h2>\n\n\n\n

Equity funds are also known as growth funds for a reason. Since their primary aim is capital appreciation, they are capable of generating high returns. However, this capital appreciation is directly dependent upon market fluctuations, making equity funds riskier than debt funds and other money market instruments. But, there\u2019s a silver lining to it, addressed in the next point.<\/p>\n\n\n\n

2. The risk can be mitigated<\/strong><\/h2>\n\n\n\n

You put your capital at risk only if you invest in solely equity funds or if the investments are made for the short-term. Diversifying the risk by building a portfolio of part-equity, part-debt, and part-other money market instruments will help you weather market turbulences. This diversification is not limited to asset classes, but even under equity funds, you get diversification options \u2013 Large cap<\/a>, multi-cap<\/a>, flexi cap<\/a>, etc.<\/p>\n\n\n\n

Also, equity fund investments work best for long-term investment goals such as retirement planning (where the investment horizon is usually 7 to 10 years at least).<\/p>\n\n\n\n

Additional Read: <\/strong>Systematic Transfer Plan- Ideal way to Move to Equity<\/a><\/p>\n\n\n\n

3. They go easy on your pockets<\/strong><\/h2>\n\n\n\n

Not all investors have a huge lumpsum to invest. If you\u2019re also one of them, you can easily start equity fund investing with Systematic Investment Plans or SIPs<\/a>. With an amount as low as Rs. 500 per month, you can start your investment journey. Plus, owing to fractional investments, SIPs help beat the volatility of the equity market.<\/p>\n\n\n\n

4. They offer tax advantages<\/strong><\/h2>\n\n\n\n

If you’re wondering whether mutual funds<\/a> offer tax benefits, the answer is yes, but these benefits are only offered under equity funds. Equity Linked Savings Scheme (ELSS) is a diversified breed of equity funds that makes you eligible for tax deductions up to Rs. 1.5 lakhs as prescribed under Section 80 C of the Income Tax Act.<\/p>\n\n\n\n

However, ELSS funds come with a lock-in period of three years.<\/p>\n\n\n\n

Additional Read: <\/strong>What is Equity Mutual Fund?<\/a><\/p>\n\n\n\n

5. They are highly liquid<\/strong><\/h2>\n\n\n\n

When it comes to the liquidity of equity funds, only ELSS is an exception (with its mandatory lock-in period of three years). Every other equity fund across sectors and market capitalisations is highly liquid. Meaning, you can purchase or sell its units on any business day at the applicable NAV of the fund. <\/p>\n\n\n\n

Want to build an investment portfolio on the go? Tata Capital’s Moneyfy’s mutual fund investment app<\/a> is your ideal investment partner. No matter where you are, you can browse through different fund options, compare their features, and build a diversified portfolio as per your investment requirements and risk profile. To know the top-performing equity funds in the current market, download Moneyfy today!<\/p>\n\n\n\n

\n
\n
<\/div>\n\n\n\n
\n
\n
Download Moneyfy App<\/a><\/div>\n<\/div>\n<\/div>\n\n\n\n
<\/div>\n<\/div>\n<\/div><\/div>\n","protected":false},"excerpt":{"rendered":"

Equity mutual funds invest predominantly in the stocks of a company, as much as 65% of their corpus. <\/p>\n

Read More<\/a><\/p>\n","protected":false},"author":1,"featured_media":22162,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[69],"tags":[],"yoast_head":"\n5 Benefits of Investing in Equity Mutual Fund - Tata Capital Moneyfy<\/title>\n<meta name=\"description\" content=\"Equity mutual funds invest in the stocks of a company offering high returns at the price of high risk. Explore the benefits of investing in equity mutual funds.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"5 Benefits of Investing in Equity Mutual Fund - Tata Capital Moneyfy\" \/>\n<meta property=\"og:description\" content=\"Equity mutual funds invest in the stocks of a company offering high returns at the price of high risk. Explore the benefits of investing in equity mutual funds.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.tatacapitalmoneyfy.com\/blog\/equity-funds\/5-benefits-of-investing-in-equity-mutual-fund\/\" \/>\n<meta property=\"og:site_name\" content=\"Moneyfy Blog\" \/>\n<meta property=\"article:published_time\" content=\"2021-10-01T05:02:05+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-07-14T10:50:53+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.tatacapitalmoneyfy.com\/blog\/wp-content\/uploads\/2021\/10\/01-equity-mutual-fund.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"770\" \/>\n\t<meta property=\"og:image:height\" content=\"400\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.tatacapitalmoneyfy.com\/blog\/equity-funds\/5-benefits-of-investing-in-equity-mutual-fund\/\",\"url\":\"https:\/\/www.tatacapitalmoneyfy.com\/blog\/equity-funds\/5-benefits-of-investing-in-equity-mutual-fund\/\",\"name\":\"5 Benefits of Investing in Equity Mutual Fund - Tata Capital Moneyfy\",\"isPartOf\":{\"@id\":\"https:\/\/www.tatacapital.com\/blog\/#website\"},\"datePublished\":\"2021-10-01T05:02:05+00:00\",\"dateModified\":\"2025-07-14T10:50:53+00:00\",\"author\":{\"@id\":\"https:\/\/www.tatacapital.com\/blog\/#\/schema\/person\/d82891f59a900962b0e93fee2be1099b\"},\"description\":\"Equity mutual funds invest in the stocks of a company offering high returns at the price of high risk. Explore the benefits of investing in equity mutual funds.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.tatacapitalmoneyfy.com\/blog\/equity-funds\/5-benefits-of-investing-in-equity-mutual-fund\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.tatacapitalmoneyfy.com\/blog\/equity-funds\/5-benefits-of-investing-in-equity-mutual-fund\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.tatacapitalmoneyfy.com\/blog\/equity-funds\/5-benefits-of-investing-in-equity-mutual-fund\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.tatacapitalmoneyfy.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"5 Benefits of Investing in Equity Mutual Fund\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.tatacapital.com\/blog\/#website\",\"url\":\"https:\/\/www.tatacapital.com\/blog\/\",\"name\":\"Moneyfy Blog\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.tatacapital.com\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.tatacapital.com\/blog\/#\/schema\/person\/d82891f59a900962b0e93fee2be1099b\",\"name\":\"admin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.tatacapital.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/0e9e78de7f84add076f397dd13acc708?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/0e9e78de7f84add076f397dd13acc708?s=96&d=mm&r=g\",\"caption\":\"admin\"},\"sameAs\":[\"https:\/\/www.tatacapitalmoneyfy.com\/blog\"],\"url\":\"https:\/\/www.tatacapitalmoneyfy.com\/blog\/author\/admin\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"5 Benefits of Investing in Equity Mutual Fund - Tata Capital Moneyfy","description":"Equity mutual funds invest in the stocks of a company offering high returns at the price of high risk. Explore the benefits of investing in equity mutual funds.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"og_locale":"en_US","og_type":"article","og_title":"5 Benefits of Investing in Equity Mutual Fund - Tata Capital Moneyfy","og_description":"Equity mutual funds invest in the stocks of a company offering high returns at the price of high risk. Explore the benefits of investing in equity mutual funds.","og_url":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/equity-funds\/5-benefits-of-investing-in-equity-mutual-fund\/","og_site_name":"Moneyfy Blog","article_published_time":"2021-10-01T05:02:05+00:00","article_modified_time":"2025-07-14T10:50:53+00:00","og_image":[{"width":770,"height":400,"url":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/wp-content\/uploads\/2021\/10\/01-equity-mutual-fund.jpg","type":"image\/jpeg"}],"author":"admin","twitter_card":"summary_large_image","twitter_misc":{"Written by":"admin","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/equity-funds\/5-benefits-of-investing-in-equity-mutual-fund\/","url":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/equity-funds\/5-benefits-of-investing-in-equity-mutual-fund\/","name":"5 Benefits of Investing in Equity Mutual Fund - Tata Capital Moneyfy","isPartOf":{"@id":"https:\/\/www.tatacapital.com\/blog\/#website"},"datePublished":"2021-10-01T05:02:05+00:00","dateModified":"2025-07-14T10:50:53+00:00","author":{"@id":"https:\/\/www.tatacapital.com\/blog\/#\/schema\/person\/d82891f59a900962b0e93fee2be1099b"},"description":"Equity mutual funds invest in the stocks of a company offering high returns at the price of high risk. Explore the benefits of investing in equity mutual funds.","breadcrumb":{"@id":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/equity-funds\/5-benefits-of-investing-in-equity-mutual-fund\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.tatacapitalmoneyfy.com\/blog\/equity-funds\/5-benefits-of-investing-in-equity-mutual-fund\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/equity-funds\/5-benefits-of-investing-in-equity-mutual-fund\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/"},{"@type":"ListItem","position":2,"name":"5 Benefits of Investing in Equity Mutual Fund"}]},{"@type":"WebSite","@id":"https:\/\/www.tatacapital.com\/blog\/#website","url":"https:\/\/www.tatacapital.com\/blog\/","name":"Moneyfy Blog","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.tatacapital.com\/blog\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.tatacapital.com\/blog\/#\/schema\/person\/d82891f59a900962b0e93fee2be1099b","name":"admin","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.tatacapital.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/0e9e78de7f84add076f397dd13acc708?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/0e9e78de7f84add076f397dd13acc708?s=96&d=mm&r=g","caption":"admin"},"sameAs":["https:\/\/www.tatacapitalmoneyfy.com\/blog"],"url":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/author\/admin\/"}]}},"featured_image_url":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/wp-content\/uploads\/2021\/10\/01-equity-mutual-fund.jpg","_links":{"self":[{"href":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/wp-json\/wp\/v2\/posts\/22161"}],"collection":[{"href":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/wp-json\/wp\/v2\/comments?post=22161"}],"version-history":[{"count":6,"href":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/wp-json\/wp\/v2\/posts\/22161\/revisions"}],"predecessor-version":[{"id":38666,"href":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/wp-json\/wp\/v2\/posts\/22161\/revisions\/38666"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/wp-json\/wp\/v2\/media\/22162"}],"wp:attachment":[{"href":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/wp-json\/wp\/v2\/media?parent=22161"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/wp-json\/wp\/v2\/categories?post=22161"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/wp-json\/wp\/v2\/tags?post=22161"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}