An Equity Fund invests a majority of its underlying portfolio in equity and equity related investments across different companies, market cap and sectors.

There are various types of equity funds including large-cap fund, mid-cap, large & mid-cap fund, small-cap fund, value fund, focused funds, sector & thematic funds, and so on. Broadly, equity funds can be categorized as actively managed and passively managed funds.
Actively managed funds require active fund management and is ideal for those who want the potential to beat the market. Whereas passively managed funds replicate the index in composition and generate returns in line with the benchmark index. It does not require active fund management.

Generally, equity funds have the potential to create risk-adjusted returns over a long period, but at the same time, they tend to be riskier as they can be volatile in the short-term depending on market fluctuations. It is important to diversify your equity portfolio across various stocks and market cap, depending on your investment objective.

Starting from August 2009, SEBI has mandated that mutual funds cannot charge entry load to investors. So currently, there is only an exit load charged to investors. Exit Load is the fee collected from investors when exiting from an equity fund scheme partially or fully within a predetermined period from the date of investment.

If you have an investment horizon of 5 years or longer and have a risk appetite, then you can consider investing in an equity fund. It is suitable for long-term goals such as buying a house or retirement.

If you choose to invest passively, you can invest in 3 ways in the Nifty 50 Index:

1) Index Fund 2) ETF 3) Fund of Fund investing in ETF

Nifty 50 ETF Fund of Fund invests in units of the Nifty 50 ETF, offering the efficiency of an ETF with the convenience of an Index Fund. The underlying Quantum Nifty 50 ETF tracks/ replicates India’s Nifty 50 companies. In other words, this fund provides exposure to the Nifty 50 Index through an SIP option.

ETF and index ETF funds are two ways of investing in the Nifty Index. An index fund aims to build wealth by imitating or replicating the Nifty 50 Index. While ETFs (exchange traded funds) are traded like stocks and are a low cost way to replicate the index. There is also another type of mutual fund that involves a passive investing strategy i.e., a Fund of Fund scheme. An index ‘Fund of Fund’ (FOFs) or ETF index Fund of Fund passively invests in another mutual fund(s) or ETF rather than investing directly in stocks, bonds or other securities.

You can invest in a Nifty 50 index mutual fund or the Nifty 50 ETF Fund of Fund in the same way as that in any other mutual fund scheme. You can invest using an SIP of Rs. 500 or a lumpsum mode of investment. A Systematic Investment Plan (SIP) is a disciplined way to gradually invest in mutual funds at predetermined intervals (weekly, monthly, quarterly, or semi-annually), to help you in your wealth creation journey.

On the other hand, if you prefer investing in the Nifty 50 Index ETF, you need to have a minimum investment of 1 Unit. 1 Unit is equivalent to the Fund NAV. The NAV is arrived at after deducting expenses and tracking error.
Although Nifty Index Funds or ETFs can offer risk-adjusted returns over the long term, they do not offer flexibility to the Fund Manager in managing market downsides. If the fund is generating negative returns due to unfavourable economic conditions, the active Fund Manager has the flexibility to modify the portfolio composition to lower the downside risks. For instance, you can consider the Quantum Nifty 50 ETF Fund of Fund as a core component of your portfolio using a passive approach. You can consider diversifying your equity basket using actively managed equity mutual funds such as theQuantum ESG Best In Class Strategy Fund. You can make use of the Asset Allocator Calculator to rebalance between funds as per the tried and tested 12|20:80 Asset Allocation Strategy.

Yes, you can redeem units from your Nifty 50 ETF Fund of Fund that invests in the underlying ETF. For redeeming from Equity Funds and getting money to your account generally takes 3 working days.