Know The Essential Things About Investing In Equity Mutual Funds
Investors India|August 2021
Both, new and existing equity mutual fund investors start investing to save for their long-term goals. What they need to be aware of is that the volatility is a part and parcel of the stock market and returns may keep fluctuating over time. However, when held for long period, the NAVs are seen to drift upwards thus delivering a return higher than what other assets give.
Sanjeev Puri
Know The Essential Things About Investing In Equity Mutual Funds

Here are few key things to keep note of while investing in equity mutual funds:

Match your goals to schemes

Choosing mutual funds (MF) to save for your goals needs careful consideration. Not all funds can meet your expectations. You will need to link your goal with the investment horizon and then choose the right mutual fund scheme to achieve your desired goals. When it comes to planning for your child’s future needs, say, around ten years away, you may want to stick to large-cap funds as they invest in well-established, top-rung companies and are, therefore, less volatile. For goals, which are around five years away, balanced mutual funds can be the answer. Similarly, for goals that are 1-3 years away, debt funds should be the ideal parking slot. For your needs that are less than a year, shorter-term and liquid funds should be your investment avenues.

Never ignore the objective of the scheme

Investing in a specific MF scheme without knowing the scheme’s objective is like boarding a train without any goal in mind. Every fund’s information document including the fact sheet carries the objective of the scheme. Read it to align to your goals. Depending on the objective of the MF scheme, the fund manager invests in the stocks of large-, mid-or small-cap companies, or in a mix of them. Whether the scheme would diversify across industries or be concentrated in one or few specific is also conveyed from the objectives.

Building wealth- Little by little

This story is from the August 2021 edition of Investors India.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.

This story is from the August 2021 edition of Investors India.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.

MORE STORIES FROM INVESTORS INDIAView All
Learn the Magic of Self-Talk There is perpetual self-talk taking place inside all of us
Investors India

Learn the Magic of Self-Talk There is perpetual self-talk taking place inside all of us

We listen when our self-talk happens in our minds; we listen to whatever is imprinted in our memories and our past conditioning. Many a time we do not hear exactly what the other person is saying, and we form an opinion.

time-read
6 mins  |
February 2024
Bajaj Capital Redefines Prosperity: Unveiling the Next Era with the Grand Launch of Global Private Wealth
Investors India

Bajaj Capital Redefines Prosperity: Unveiling the Next Era with the Grand Launch of Global Private Wealth

At the remarkable launch of Bajaj Capital's Global Private Wealth Channel in Goa, our team experienced Chairman Mr. Rajiv Bajaj sharing profound insights on the future and vision. He emphasized the transformative role the Private Wealth Team can play in clients' lives.

time-read
1 min  |
February 2024
ELSS Mutual Funds: A Smart Choice for Long-Term Investing in India
Investors India

ELSS Mutual Funds: A Smart Choice for Long-Term Investing in India

The encouraging performance of the Indian economy, and the robust equity market returns for the year are among the top highlights for investors and observers of the Indian economy for 2023. This certainly makes investing in the Indian markets an attractive proposition for many people who are curious about investing and want to start their investment journey.

time-read
3 mins  |
February 2024
Strategic asset allocation will remain key to navigating market movements
Investors India

Strategic asset allocation will remain key to navigating market movements

India appears to be enjoying a Goldilocks moment with reasonable growth momentum, stable commodity prices especially crude oil, slowing inflation, and a weakening dollar bias.

time-read
2 mins  |
February 2024
Decoding the Essentials for Your Insurance Basket
Investors India

Decoding the Essentials for Your Insurance Basket

Discover the keys to unlocking a robust and comprehensive insurance portfolio as we embark on an insightful journey into the realm of insurance essentials. In this discussion, we bring together the expertise of Mr. Sanjiv Bajaj, Jt. Chairman & MD of Bajaj Capital, and Mr. Vighnesh Shahane, CEO and Managing Director at Ageas Federal Life Insurance. These industry veterans decode the crucial elements that form the bedrock of your insurance basket, providing you with invaluable guidance for protecting your assets, health, and future.

time-read
5 mins  |
February 2024
INDIA MARKET OUTLOOK-2024
Investors India

INDIA MARKET OUTLOOK-2024

The investment landscape in the year ahead appears both promising and challenging, marked by a complex interplay of factors. India’s macroeconomic fundamentals, despite the inherent uncertainties of an election year, paint a positive picture.

time-read
2 mins  |
February 2024
An Hour Spent In Yoga Is Rewarded With 2 Hours Of Extra Life Span
Investors India

An Hour Spent In Yoga Is Rewarded With 2 Hours Of Extra Life Span

There is no doubt that a robust and healthy body is more resistant to stress, both physical and emotional, than a weak and exhausted body.

time-read
5 mins  |
January 2024
How to deal with the bull run in equities
Investors India

How to deal with the bull run in equities

The Indian stock market has witnessed impressive gains this year with the Sensex crossing the 71,000 mark.

time-read
3 mins  |
January 2024
Unlock Tax Savings and Long-Term Growth Potential with ELSS Mutual Funds
Investors India

Unlock Tax Savings and Long-Term Growth Potential with ELSS Mutual Funds

In the dynamic and ever-evolving world of finance, Indian investors are constantly seeking investment avenues that offer a winning combination of tax benefits and long-term wealth creation potential.

time-read
3 mins  |
January 2024
Nifty 50 Equal Weight Index funds: How are they different from Nifty 50 and should you invest in them?
Investors India

Nifty 50 Equal Weight Index funds: How are they different from Nifty 50 and should you invest in them?

In a game of chess, every piece, from pawn to queen, has unique abilities and can move in a specific way.

time-read
5 mins  |
January 2024