How Diversified Equity Funds Create Wealth in The Long Term

Blueant Finserv22 Aug, 2022Other

Diversified equity mutual funds invest in equity shares of listed companies across various sectors and market capitalization sectors. Diversified equity funds buy and hold securities with the objective of capital appreciation over a long investment period. Fund managers may periodically churn their portfolios and in the process, the booked profits can be distributed to investors either in the form of dividends (in dividend options) or through the power of compounding (in growth options). The funds can be reinvested in the scheme to generate future profits through the medium.