equity funds seem to be the most popular type of mutual fund. would you recommend this type of fund for a person who is close to retirement age? why or why not?

Respuesta :

Equity funds are thought of as a little riskier investment since they will only invest in equity shares and will only attempt to incorporate shares in the mutual fund.

What is an Equity fund?

Because equity funds exclusively take exposure in stocks, they will give investors who are seeking for an aggressive portfolio as just an investment for a longer time horizon a greater opportunity to optimize their rate of return.

The investor wants a reasonable return, which cannot be offered with stocks because stocks must always be decided to invest for a longer period and they will constantly offer with higher interest rates in the longer period, so it is possible to say that it with these are generally invested into a longer period of time. I will not be trying to suggest this type of fund to someone who is close to retirement because he will need his regular money when he has retired so the investor needs the real return which can never be supplied with stocks.

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