Equity and debt mutual funds are two popular types of mutual funds. Let's explore their key differences to make informed investment choices.
Equity mutual funds: Invest primarily in the stocks of companies, aiming for capital growth. Debt mutual funds: Invest in fixed-income securities like bonds and government securities.
Equity mutual funds: Higher risk but with the potential for higher returns. Ideal for long-term growth. Debt mutual funds: Lower risk with stable returns. Suitable for conservative investors.
Equity mutual funds: Best for long-term investments, often 5 years or more, due to market volatility. Debt mutual funds: Best for medium- to short-term investments, like 1 to 3 years.
Equity mutual funds: Returns come from capital appreciation and dividends. Debt mutual funds: Returns come from interest income and possible capital gains.
Equity mutual funds: Subject to high market volatility, leading to fluctuating fund values. Debt mutual funds: Less volatile, with values less impacted by market swings.
Be it Equity or Debt, invest in 5,000+ mutual funds via Groww based on your financial goals, investment horizon, risk appetite, & associated factors.