Equity Investments

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:

  1.  Equity—which provides ownership rights to holders.
  2.  Debt—essentially loans repaid with periodic payments.
  3. Hybrids—which combine aspects of debt and equity.

An equity Scheme is a fund that

  1. Primarily invests in equities and equity-related instruments.
  2. It seeks long term growth but could be volatile in the short term.
  3. 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.