These types of schemes are also known as Growth Schemes; who look to spend a greater part of their money in equities plus a small portion into money market instruments. These schemes have great potential to give better returns in the longer term. Nonetheless, because funds are invested in equities, the schemes are impacted by the fluctuations in prices particularly in the short term.  

Therefore, these Equity schemes are not appropriate for investors who are seeking regular profits or wanting to use their savings in short-term. They are perfect for investors who contain a long-term savings horizon. NAV prices of the equity fund changes with market worth of the underlying equities which are subjective to external factors that are social, political and economic.