What are the types of equity mutual funds? MintGenie explains

livemint.com:

mutual fund is like a big pot of money collected from many investors like you who want to invest in the stock market or other assets. This big pot of money is managed by a professional called a fund manager. The fund manager's job is to decide which stocks, bonds, or other assets to buy and sell within the fund.

When you invest in a mutual fund, you buy shares of that fund. Each share represents a small piece of the entire pool of investments held by the mutual fund. So, when the value of the investments in the mutual fund goes up, the value of your shares goes up too.

And if the value of the investments goes down, the value of your shares goes down as well. The main idea behind a mutual fund is that by pooling your money with other investors and having a professional manager handle the investments, you can potentially spread out your risk and have a better chance of making money over the long term. There are various ways of categorising equity funds.

Here is a look at the different categorizations: Thematic or sectoral funds - These funds invest at least 80% investment in stocks of a particular sector/ theme like international stocks, emerging markets, BFSI, IT, or pharmaceuticals. These funds carry higher risk due to their narrow focus on a particular sector or theme. Dividend yield fund - It primarily focuses on investing in stocks or securities of companies with a history of paying high dividends relative to their share price.

These funds are designed to provide investors with regular income in the form of dividends along with the potential for capital appreciation. Value fund - The fund follows a value investing strategy. Value investing involves selecting stocks that are deemed to be undervalued relative to their