Equity vs debt funds | Best comparison in 2021
Equity vs debt funds– you need to know about a mutual fund first. Then you will understand this. You should know how a mutual fund works, what is a mutual fund e.t.c.
To know about mutual funds you can check this site.
These are a type of mutual funds. You all want to know that in which fund you should invest, which is a low-risk fund. Here you will get all your answers.
You should know that a mutual fund can be a good option to invest in the stock market if you pick the good funds.
If you are not willing to invest in the stocks directly then you can invest via a mutual fund.
Let’s discuss all the important points here which will clear your doubts.
- The meaning of Equity and debt.
- The meaning of Debt.
- What are equity funds and debt funds?
- Pros and Cons. ( Risk, Returns, Liquidity, Volatility. )
- Where should you invest?
Let’s discuss.–
The meaning of Equity —
To understand Equity vs debt funds you need to understand this first.
The basic meaning of equity is ownership. It financially often means issuing additional shares of common stock to an investor. The basic formula of equity is ASSET MINUS LIABILITIES.
We know that if we buy a company’s share then it means that we are buying a small part of that company and in the language of investment we call it Equity.
If the company needs money to grow its businesses and the public invests in it then we can call it equity investment. The public will get shares of that company by investing in it.
To invest in mutual funds or in stock you can check UPSTOX once.
What is debt–
In the topic Equity vs debt funds, you need to know about all these very well. We will understand this in the language of investment in the stock market.
Debt means loan. The debt mutual funds are those that provide loans.
When a company, or a financial institution, or the government needs money for a project or to grow businesses, or to maintain regular expenses then these funds give loans to these organizations by taking a decent interest.
What are equity funds and debt funds ( Equity vs debt funds ) —
This you can say the main part of the topic Equity vs debt funds.
