What are mutual funds and equity?



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Can i know about mutual funds & equity in detail

3 Answer(s)


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Equity is nothing but the individual shares you can buy in the stock market. For example you can buy Airtel shares in the stock market.

Mutual Funds are a collection of shares that is managed by a Fund Manager. For example ING Divident Yield is a mutual fund. By buying into this mutual fund you will be buying more than 1 share. Please find more information here - http://en.wikipedia.org/wiki/Mutual_fund

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MUTUAL FUND- BASICALLY MUTUAL FUND IS A PROFESSIONAL MONEY MANAGER WHO INVESTS YOUR MONEY.....
EG YOU HAVE LIKE RELIANCE MUTUAL FUND ITSELF....

EQUITY- IT REFERS TO THE SHARES THAT YOU BUY AND SELL IN THE STOCK MARKET....
EG YOU HAVE RELIANCE CAPITAL SHARES IN SHARE MARKET...
YOU HAVE RELIANCE INFRA, RELIANCE COMMUNICATIONS....

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A mutual fund is a kind of investment that uses money from many investors to invest in stocks, bonds or other types of investment. A fund manager (or "portfolio manager") decides how to invest the money, and for this he is paid a fee, which comes from the money in the fund.

Equity is the ownership interest or claim of a holder of common stock (ordinary shares) and some types of preferred stock (preference shares) of a company. On a balance sheet, equity represents funds contributed by the owners (stockholders) plus retained earnings or minus the accumulated losses.

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