This is one of the ways of participating in the equity markets. But if you do not want to directly buy and sell equities, there is an option. You can invest in equity mutual funds, who in turn will invest in equities on your behalf. In fact, in mutual funds you will also get the benefit of expert fund management. When it comes to financial planning, quite often investors prefer to use the mutual funds route as it provides a diversified method of managing your risk. Also, it has been observed, that the investor is saved of the stock selection risk and such funds give strongly positive returns in the long run.