What are the Different Types of Equity Trades?

 EQUITY TRADING

If you are a trader or just someone who follows the market, you might have already come across questions like What is Equity Trading, and How to invest in Equity Trading. With Goodwill Wealth Management find answers to all your queries today! Equity is chosen by a vast number of traders for all the benefits it possesses. Equity Mutual Funds work by investing in stocks of companies across all market capitalizations and by generating high returns from these investments.

 EQUITY TRADING WITH GOODWILL

When you invest in equity through a brokerage firm like Goodwill Wealth management who make avail, expert support, back-office support and technological back-ups, your risk factor will be considerably reduced, since Equity mutual funds are the riskiest of mutual funds. Even though they are riskiest, with right strategies they will give you returns that are worth the risks you take.

 With Goodwill, your wealth manager will make the buying and selling decisions to create maximum returns for you. Your manager will also help you in creating a result-oriented strategy that suits your goals the best. Once your decision on whether you have to go for a value-oriented approach or a growth-oriented approach, with the help of Goodwill's support you are already on the path of financial independence.

 WHO IS EQUITY FOR?

Once you get into trading, you have to figure out with expert assistance which trade you should invest in. There are many options to go for, but only one that is best suited for you. If your goals are long term then, it is better for you to invest in Equity Funds. For beginners it is always better to start with large-cap equity funds and experienced traders can go for diversified equity funds. Now that we have brought in large-cap equity funds, let's dwell deeper into types of equity funds.

 DIFFERENT TYPES OF EQUITY

Equity funds can broadly be classified into three. Sector and Theme Based, Market Capitalisation based and based on your investment Styles.

1. Sector and Theme: If your investments are based on a particular sector like, technology, FMCG etc. your equity falls under themes. These funds follow one select subject and focus on the emerging companies or international stocks of that particular theme. These are however risky but can be used as a diversification element.
2. Market Capitalisation: Depending on the success and returns of the company you choose to invest in, your fund can be classified into Large-cap, Mid-cap, Small-cap, Mid, and Small-cap, and Multi-Cap Funds. As the name signifies, Large caps are well-established companies, Mid caps are medium-sized companies, which are not as stable and Small-cap are for small companies that could be volatile and risky. Mid and Small-cap, and Multi-Cap Funds allows you to have a mixture of both, the former has the potential to offer high returns while the latter gives you access to all market capitalizations.
3. Investment Style: Equity funds that don't follow the above-discussed styles will follow a particular index, like that of Sensex, these funds are called as Index funds. Index funds are passively managed funds that invest in the same companies, in equal proportions, making up the index, the fund follows.

BENEFITS OF EQUITY

1. Expert money management
2. Low Cost
3. Convenience
4. Diversification
5. Systematic investments
6. Flexibility
7. Liquidity

 

Now that you have a fair idea about equity funds, Contact Goodwill Wealth Management and get into Smart Trading with expert support and smart apps like INTEGER and GAMA that let's you trade anytime and anywhere!

 For a no-compulsion initial consultation and a successful trade journey in 2020 amidst the crisis, join hands with GOODWILL WEALTH MANAGEMENT. Call us today on +91 80122 78000 to Indulge in Smart Trading and Smart Earning!