Equity mutual funds are the type of investment scheme where the assets are invested into shares/stocks of different companies. The objective of investing in Equity Mutual funds is to gain a significant return. According to Securities & Exchange Board of India (SEBI), any fund with at least 65% investment in stocks/shares of a company and a minimum 10% in debts is termed as Equity Mutual Funds. These funds are known for better return compared to other forms of investments. However, there is an element of risk, as the returns depend on market conditions.