Like stocks, mutual funds are considered equity securities because investors purchase shares that correlate to an ownership stake in the fund as a whole.

Is equity and fund same?

Investors in equity are dependant on their own knowledge of the market while mutual fund investors rely on the expertise of the fund manager to guide them. ... Trading in mutual funds, however, comes at a much lower cost since these expenses are spread over all portfolios within the fund.

Which funds are equity funds?

Equity funds are those mutual funds that primarily invest in stocks. You invest your money in the fund via SIP or lumpsum which then invests it in various equity stocks on your behalf. The consequent gains or losses accrued in the portfolio affect your fund's Net Asset Value (NAV).