Equity funds are best suited to investors with a long investment horizon (5+ years) and a higher risk tolerance, aiming to grow wealth over time by investing predominantly in company shares.
Common Types of Equity Funds are
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Note: Illustrative estimate. Mutual Fund investments are subject to market risk.
Illustrative estimates assuming a constant annual return. Actual mutual fund returns fluctuate and are not guaranteed.
How Equity Funds Are Taxed (FY 2025-26 / 2026-27)
| Equity Funds — Capital Gains Tax | |
|---|---|
| Short-Term (held ≤12 months) | 20% |
| Long-Term (held >12 months) | 12.5% on gains above ₹1.25 lakh/year, no indexation |
Excludes applicable surcharge and 4% Health & Education Cess. Tax laws change with each Union Budget — always confirm current rates with a tax advisor.