India, May 1 -- In a broader mutual fund investment journey, equity funds play a significant role. They are typically positioned as the growth-oriented component of a portfolio, used for long-term financial goals. A mutual fund journey includes different stages and needs, such as building wealth, managing risk and maintaining liquidity. Equity funds fit into this framework by addressing the growth aspect, especially for goals that are years away. At the same time, other fund categories are used to support stability and short-term requirements so that the overall portfolio remains balanced.

Key Takeaways

Understanding the role of equity funds

Equity mutual funds invest in shares of companies across different sectors and market capitalis...