Getting equity exposure is about following the rules for holding the portfolio to see index-plus returns( high returns). Take a considerate decision on investing in Equity and understand that equities are the best way to create wealth.
Rules for investing in Equity:
- Have the patience to see consistent returns. If you buy equity with a holding period of 10 years, you’ll be able to see interesting returns(positive returns) in the 7th year of your investing. This happens because the fluctuation in the returns will start reducing and then on average, you’ll see returns that will above 14-15% per year. Thus, have the patience to have investments in the long term.
- You’ll be at risk if you choose a poor product. If you opt for a poor product with a long holding period and later you find yourself that you did worse than the average product in the market. So, be careful while choosing a product and be very particular about your risk bearing capability.
- What if you find out yourself frozen in choosing Equity products. Firstly, understand the Equities completely.
There are 3 ways to buy equity:
- Direct stock
- Market-linked products(ULIP’s)
- Mutual Funds.
You can invest in Equity Funds through Finity. They are professionally managed by expert professionals who spend quality time researching the performance of these funds.
The benefits include:
- You can invest in Equity Mutual Funds that have provided returns >15% for the past 5 years.
- They offer you an opportunity to redeem your investments at any time (Except for Equity Linked Saving Schemes-‘ELSS’ which has a lock-in period of 3 years).
- Equity mutual fund schemes avail you a facility to invest small sums at regular intervals through systematic investment plans (SIP).
- Do not invest in any product that locks you in a particular company or asset manager. Always opt for the product where the “Exit” is possible with an easy and cheap procedure. And also look for the “portability” where you should be able to move your money more easily to a better fund investment with minimum cost.
- If you want to manage your funds by yourself, start learning about the products through online platforms and try to look in the records to know how the funds are performing over the years, and then invest. Always remember, “Not investing in Equity” is not your option.
Thus, put your money to work for the long term. If you’re a good financial planner then you would have already planned for your Emergency funds and medical cover. So, you have taken away the need for keeping money in liquid and you can risk investing in Equity Mutual Funds.
Here, you have the best platform -“Finity” to invest in Equity Funds and create wealth for the long term. Use Finity to discover, track and invest in Equity Funds.