Equity Investments
An equity investment is a money that is invested in a company by purchasing shares of that company in the stock market. These shares are typically traded on a stock exchange.
There are primarily three types of securities:
- Equity—which provides ownership rights to holders.
- Debt—essentially loans repaid with periodic payments.
- Hybrids—which combine aspects of debt and equity.
An equity Scheme is a fund that
- Primarily invests in equities and equity-related instruments.
- It seeks long term growth but could be volatile in the short term.
- Suitable for investors with higher risk appetites and longer investment horizons.
The objective of an equity fund is generally to seek long-term capital appreciation. Equity funds may focus on certain market sectors or may have a specific investment style, such as investing in value or growth stocks.