Are you planning to invest your money to earn higher returns? From many years our standard choices include fixed deposits, public provident funds, etc., but in recent times the concept of equity funds is also getting popular for investments.
In the family tree of mutual funds, many types of branches are included, such as debt funds, equity funds, and hybrid funds. In equity fund investment, your money is invested in the stock market through mutual funds. It is one of the most popular funds for investment. So if you are willing to invest your money in a higher mutual fund, then you can give it a try to an equity mutual fund.
Benefits of equity mutual funds
The major benefits of equity mutual fundsare mentioned below. They are as follows:
Imagine that you invest your money in a company, and it undergoes a loss, so your investment will be at risk. Now Investing the money through equity funds provides wide exposure to the investors. Your money is invested by breaking it down into different parts so risk factors are less and higher returns are expected. Investment through equity funds provides diversity to the investors.
- Better capital appreciation
Do you want to invest in a mutual fund? Are you confused between debt and equity funds? Don’t worry; we have a tip for you. Start your research by analyzing the growth and return of a particular fund. According to trends, the returns in equity funds have a better capital appreciation rate, and higher returns are expected.
- Tax saving
If you choose equity mutual funds for investment, then it can help in saving tax also. You can choose ELSS [Equity Linked Savings Schemes] for tax savings. The major benefits of the ELSS scheme are long-term capital gains and a short lock-in period of three years. They make it one of the most popular investment options for investors.
- Long-term financial growth
If you are planning for a long-term investment, equity funds are one of the best options. The stock market undergoes fluctuations frequently, so long-term commitment is required to earn higher returns. If you are investing in equity mutual funds, then it can provide you with long-term financial growth. In addition, investing for a long period also lowers the risk on the invested money.
If you are planning to invest your money, then start by doing market research. You can also consult a professional to invest your money in a mutual fund to gain high returns. There are many equity funds in India that you can choose from.
Smriti Jain is the owner and senior content publisher at Financesmarti. Financesmarti is a website where she shares a lot of useful stuff for the people and business of India. This includes small business ideas and other banking information, as well. Smriti completed her education in science & technology from Delhi University. Smriti usually has interests in digital marketing now, and she has chosen this career for the full-time opportunity. The primary purpose of starting this blog to provide quality information on the banking industry to the people.