What are equity funds? How to decide which fund to invest in?

what should be the minimum income of an individual to begin investment in equity funds? What are some low risk funds ? Thanks

Do you have more savings in the bank than you need for emergencies? Then you should be investing the excess in equity funds. Equity funds are funds that invest in stocks.

What is your investment time horizon? If it is less than 10 years you should probably put some of your money into bank CDs. If it is more than 10 years you should put all of your money into equity funds. The stock market has only lost money in one span of 10 years over the past 75 years.

The best way to start is to invest in an index fund with low expenses e.g. the Vanguard Index 500 fund. If you can afford to put some money away every month, then set up an automatic investment plan and forget about it. Don't get exercised over short term movements in the market. Over the long term the trend is always UP.

Read "Investing For Dummies" and "Mutual Funds For Dummies." Excellent books.