What is sector mutual fund? A sectoral fund is an equity fund that invests the money of investors in businesses belonging to the same industry or sector. Read features of sector funds, various types of sector funds.
What is the difference between large cap, mid cap and small cap funds? Large cap mid cap and small cap mutual funds are equity mutual funds which are classified based on market capitalization.
Equity mutual funds basically are ones which primarily invests in stocks. He basically invests in a basket of stocks and can get benefit of the bunch of stocks and diversify his investment rather than buying a single individual stock and having a concentrated approach. These equity funds invest directly into stocks and give highest rate of return but the risk involved is also higher.
