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Benefits of Investing in Equity Mutual Fund for a Long-Term

Benefits of Investing in Equity Mutual Fund – SIP or Lumpsum

Equity or stock markets has historically proven to be the one of the best ways of wealth creation among various asset class. S&P BSE Sensex has returned 15% on average, for a 15-year holding period ended March 28, 2018 since its inception (1979). While investors can benefit from the asset class by directly investing in stock markets, the do-it-yourself process is time consuming and requires necessary skills to invest and protect capital invested. A simple way to overcome these challenges is to invest in Equity MF via SIP or Lumpsum investment as they are professionally managed by the Fund Managers.

Counter volatility with patience by investing in SIP’s

Equities are volatile in the short term and this challenge can be overcome only by investing for long period. Equity MF generates reasonable better returns over the long term and helps in long term wealth creation.

Other benefits of investing in equity mutual funds – SIP or Lumpsum

Diversification across different stocks and sectors by Equity MF – Equity Mutual funds help to lower the risk as investment is well diversified across different stocks, sectors and market capitalisation.

Variety to explore from multiple Sectors – Investors keen on investing in equity funds have a wide variety to choose. Investors can park money in diversified, large cap, index fund plans too. Investors with higher risk appetite can look at small and mid-cap funds. Equity Mutual fund also aid in tax planning via equity-linked savings schemes (ELSS). Investments upto 1.5 lakh in every financial year qualify for tax deduction under 80C of the Income Tax Act.

Summing up - Long term investments in Equity Mutual Funds is the best way to generate wealth. Investors must look for consistent performers and invest in tune with their goals and risk-return parameters.

Mutual Fund investments are subject to market risk and the Investors should consider their investment objectives and risks carefully before investing & must read all scheme related document carefully

MF Invest India is registered with AMFI under ARN code: ARN144789

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