We earn money today for a better future. But several times it is seen that our expenditures are more than our earnings. 25-35 years is the golden period where you can earn more. And it is also the time when you need to start saving up money. This is also the age where you can take higher risks. Therefore, stop thinking, and start investing in aLong Term Equity Mutual Fund in India.
There are a lot of investment options available in the market but if you are thinking to achieve a long term goal and want a higher return, then Equity Funds are the most recommended ones. Equities and Mutual funds are the most prominent investment tools offered by different financial institutions.
Equity Mutual Funds in India invests 60% of the assets in purchasing stocks of various large-cap, mid-cap, and small-cap companies. They have a potential of higher returns but are having certain risks associated with it.
If you want to maintain your financial stability throughout your life even after retirement from work, then get hold of your financial planning. To enjoy the growth of your investment, start investing in a Long Term Equity Fund in India. Suppose you are planning about your child's education or a marriage that is going to take place some five years later. If you are investing in this mutual fund option for five years, you will receive an ample amount of money. Moreover, investment via SIP gives you an extra benefit of extra earnings from compound interest rates.
The chief benefits of long term equity funds are -
- One can generate higher returns in comparison to most other asset classes.
- The funds keep growing with a substantial amount of time and reap extra profits. You can raise your fund at a faster pace than inflation.
- Investing in a Long Term Equity Fund in India offers an advantage of compounding.
- Long Term Equity Fund in India gives you a chance to rectify your investment mistakes if any.
- With long term investments, the risk of losing your investment is too less. You get sufficient time to expand your investment portfolio to coup with the losses made.
- Low capital is required while you start investing. It can be as low as Rs 500 per month. Thus anyone can invest in these funds.
- For achieving a long term financial goal, you need to build a diverse portfolio. Investing in Long Term Equity Fund in India allows you to diversify your portfolio.
- Long term equity funds get taxation benefits from the government and have chances of better capital appreciation.
Whenever you are investing in something there are always some risk factors associated with it. Therefore it is better to start investing in your early 20s when you are liable to take maximum risks.
