Equity funds invest mainly in shares listed on the stock exchange , issued by various companies . If the company is pofitabila , investors win by that action increases the value and / or the company distributes dividends to shareholders . Conversely , if the company losses , investors may lose the entire amount invested . When a person buys the mutual fund units , it automatically becomes a shareholder in the companies in which the fund investors. Investments in shares turned in the fastest way for the growth of financial wealth . Meanwhile, stock prices often recorded significant declines . Thus, these funds , the possibilities of winning are higher , but the risk of loss is significant. The relationship of expected return and risk assumed is based scheme that operates mutual funds investment share. A useful indicator to assess the risk of a fund share is the share of investments in shares of the total portfolio . The higher rate is higher , the higher the risk increases.The term ’ scholarship ’ is used in language in many ways. In most cases , it refers to the place where they sell and buy securities such as stocks and bonds . In this case, the stock market is not necessarily physical space , but is most often an electronic network that enables rapid execution of transactions , as is the case of BSE ottapalam, India
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