Equity Fund
What are Equity Funds?
Everyone wants to be an investor as good as Warren Buffet and Mark Mobius! But most do not have their kind of resources, time or patience to become one. Thus, the best option for most are mutual funds where a bouquet of funds across industries, risk appetites and returns are created by fund managers who put it before the investing public be they HNI individuals or those with very modest means. Risks get distributed and so too returns. With time (and oodles of patience!) most investors across the spectrum earn decent to awesome returns.
Myths about Equity Funds
- You need to be an expert to invest in mutual funds.
The very fact that mutual funds are around means that the general public is being enticed to invest their money and earn a healthy sum from something which is otherwise quite complicated, the stock-markets. With professional fund managers at its disposal, all mutual funds thus give very sound advice to its investors, be they HNIs or normal salary-earners. In fact, it’s the mutual funds which have made investing flat with everyone now getting into it! - Mutual funds are for the long, long terms.
Mutual funds today in India have been tweaked to work on all terms right from a few days to a few months to a few years. That, and the fact that it includes all manner of instruments be it equities, bonds, govt securities, debts etc makes it open to people with various levels of risk appetites. - You need deep pockets to invest in mutual funds NO. A big, big NO!
Today, the main attraction of mutual funds are that one can invest in them with funds as low as INR 500.00 per month! Yes, that’s how low it is! It’s called Systematic Investment Plan or SIP and it gives the advantage of compounding while giving the advantage of market movements!
