Equity funds invest mostly in shares of listed companies. They are the growth engine of a portfolio: over long periods they have historically produced the highest returns of any fund category in India, and in any single year they can also produce the deepest losses.
They come in flavours. Large cap funds hold the biggest companies. Mid and small cap funds hold smaller, faster-growing and riskier ones. Flexi cap funds let the manager roam. Sector and thematic funds concentrate on one industry or idea.
Equity is for money you will not need for at least five years, preferably longer. Shorter than that and you risk having to sell during a downturn. On Crowwd, equity funds form the Growth sleeve of every Hive.
Equity is for years, not months. Give it at least five.