Equity-based mutual funds are mutual fund schemes that invest in stocks of different companies listed on the stock market, this will be based on the investment objective of the fund, The funds can be based on Large-cap, Mid-cap, and small-cap or a combination of the above.
They are high-risk and high rewarding funds, linked directly to the stock market.An individual with limited knowledge of stock market but who want to participate in the stock market can explore these types of funds. These funds have the potential for wealth creation in long term.