Comparte Capital Investment

What are diversified equity mutual funds?

it invests in different companies irrespective of its market capitalization

the fund managers also try to select stocks from across different sectors to make a unique portfolio.


Do you agree that different mutual fund schemes help you to get good exposure to the equity markets across different stocks and sectors? Equity funds are a good choice for investors who wish to earn good returns in the long run. Diversified equity mutual fund is a good investment choice as it invests in different companies irrespective of its market capitalization. This mutual fund scheme is suitable for new investors with a low-risk appetite look for exposure in the investment market. Let’s have a look into what diversified equity mutual funds looks like.

Diversified equity mutual funds

Diversified equity funds are those equity funds that invest in companies irrespective of their size or sector. This type of investment plan is suitable for those who have a taste for equities. Investors with long-term goals like saving money for their child’s marriage, education, or retirement planning, choose this equity mutual fund for better returns in the long run. You can choose a standalone diversified mutual fund or make a portfolio of it with other investment schemes to fulfill your financial goals.

If you invest in an equity fund to generate returns, the fund managers pick funds from all-listed stocks in order to choose around 40-60 stocks that suitable for its investment strategy. Same as in the case of diversified equity fund as well. If you choose a diversified equity fund to invest your money along with several other stocks, the fund managers also try to select stocks from across different sectors to make a unique portfolio to make better returns for their investors. They include all categories of schemes if you choose a diversified equity mutual fund for your investment like small-caps, mid-caps, large-caps, multi-caps several tax-saving equity-linked funds to an exceptional investment portfolio.

For getting a broad exposure to the equity market

One of the benefits of choosing diversified equity mutual funds for investment is that it helps investors to get broad exposure to the equity markets across various stocks and sectors. Even if these schemes spread across a wide range of stocks and sectors, they considered being less risky. The fund managers of diversified equity mutual funds have extensive knowledge and experience, and investors can approach them to get guidance during unpredictable economic situations.

Benefits of investing in Diversified equity mutual funds

As said above, diversified equity mutual funds are a type of equity mutual fund that invests in companies without considering any restrictions on its size or sector. The sectors in which diversified mutual fund invest include banking and financial services, Engineering, Oil and Gas, Automobiles, Real estate, Pharmaceuticals, FMCG, and Power.  Some of the benefits of investing in diversified equity mutual funds are:

  • Professional fund management
  • Diversity in the price of shares
  • Ideal for diverse market sectors
  • No need to spend any additional monthly transaction cost
  • Diverse mode of investment available

How to choose diversified equity mutual funds

An extensive range of diversified equity mutual funds is available, and choosing the right one can be a little difficult for the investors. You can compare the estimated returns across the funds under the same category or compare the returns to the benchmark index to select the right one for your portfolio.

Since diversified equity funds are less risky than other mutual fund schemes, they are a good option for average individual investors. The main advantage of investing in this fund is to improve the chances of diversifying investment in companies belong to different sectors. An investor can gain long-term capital appreciation by investing money in diversified equity mutual funds. By choosing such funds, investors can control the risk involved in a particular sector or stock considerably.

That’s why Comparte Investment team asks do you have “Nivesh Ki Aadat”.

With this one can say “Mutual Fund Sahi hai”,  so let me do Nivesh