| Equity Funds | | | | above average earnings in the future. |
| Equity funds are considered to be the more risky | | | | Speciality Funds - Speciality Funds have stated |
| funds as compared to other fund types, but they | | | | criteria for investments and their portfolio |
| also provide higher returns than other funds. It is | | | | comprises of only those companies that meet |
| advisable that an investor looking to invest in an | | | | their criteria. Criteria for some speciality funds |
| equity fund should invest for long term i.e. for 3 | | | | could be to invest/not to invest in particular |
| years or more. There are different types of | | | | regions/companies. Speciality funds are |
| equity funds each falling into different risk bracket. | | | | concentrated and thus, are comparatively riskier |
| In the order of decreasing risk level, there are | | | | than diversified funds.. There are following types |
| following types of equity funds: | | | | of speciality funds: |
| Aggressive Growth Funds - In Aggressive Growth | | | | Sector Funds: Equity funds that invest in a |
| Funds, fund managers aspire for maximum capital | | | | particular sector/industry of the market are |
| appreciation and invest in less researched shares | | | | known as Sector Funds. The exposure of these |
| of speculative nature. Because of these | | | | funds is limited to a particular sector (say |
| speculative investments Aggressive Growth Funds | | | | Information Technology, Auto, Banking, |
| become more volatile and thus, are prone to | | | | Pharmaceuticals or Fast Moving Consumer Goods) |
| higher risk than other equity funds. | | | | which is why they are more risky than equity |
| Growth Funds - Growth Funds also invest for | | | | funds that invest in multiple sectors. |
| capital appreciation (with time horizon of 3 to 5 | | | | Foreign Securities Funds: Foreign Securities Equity |
| years) but they are different from Aggressive | | | | Funds have the option to invest in one or more |
| Growth Funds in the sense that they invest in | | | | foreign companies. Foreign securities funds |
| companies that are expected to outperform the | | | | achieve international diversification and hence they |
| market in the future. Without entirely adopting | | | | are less risky than sector funds. However, foreign |
| speculative strategies, Growth Funds invest in | | | | securities funds are exposed to foreign exchange |
| those companies that are expected to post | | | | rate risk and country risk. |