Equity Funds

Equity Mutual Funds offer the gains of the stock market at very affordable cost. Instead of learning about the market and following sectors/companies, you have professional investors work hard to grow your money. While you enjoy you continue with your life and job while your money grows along with the market.

Benefits Of Equity Mutual Funds

The benefits of equity mutual funds are many:

1.Diversification: One mutual fund will have investments in several stocks. So if one company has a poor quarter or gets bad PR over a year, your money is not fully exposed to it.

2. Beats Inflation: Equity Mutual Funds over the long term give inflation-beating returns. You may have noticed that the corner grocery store business man may be making more money than the young software professional. That is because the returns are higher in business. On the other hand, your average FD offers returns that leave you worse off after tax. This may be a bigger risk than the risk involved in equity investment.

3. No interest rate reduction risks: Equity does carry its own risks, but these are over the short term. With non-equity investments, you run the risk of interest rate reduction. Economists tend to reduce interest rates so that businesses can flourish. Equity mutual funds may give poor returns over a couple of quarters, but over the long term, you are likely to see double-digit returns.

4. Liquidity: Open Ended Mutual Funds allow the flexibility to liquidate investments any time, but realization of financial goals can happen only by allowing equity to work over a reasonably long timeframe.

How is it different from direct equity investing?

Mutual funds allow diversification within the stock market. Whereas you’re risking your money on one particular company when you buy shares, a mutual fund is a pooled investment. For example, when Satyam’s stock crashed, their shareholders would have lost a lot, whereas mutual fund investors would not lost much less.


Who should invest in Equity Mutual Funds?

Almost everybody can invest in equity. The only exception is a person who needs money in the short term. If there are financial goals falling due within the next 5 years (retirement, children’s education, etc), it is preferable to move investments (or at least a large portion) into debt.


How long should I stay invested for?

Equity mutual funds are a good asset category for building wealth, but they are no “get rich quick” solutions. They are for the long term. If you have a financial commitment for the next 5 years, it is preferable to park the money in debt funds or invest in hybrid funds. The technical definition of long term is 10 years or more. For those not in it for the long haul, equity is not the best choice.


How much should I invest in equity?

There cannot be a generalized asset allocation for one and all. A professional investment advisor such as a Registered Investment Advisor (RIA) will help you arrive at the right allocation. RIAs are registered with the Securities & Exchange Board of India (SEBI) and play a fiduciary role. This means that they are focused on giving you right interest for a fee. It is illegal for them to make any commission income.


How should one invest in Equity?

You can invest in Equity mutual funds by choosing any of the fund categories listed below. Then entire process is seamless and can be done in minutes.
They also track the performance of the funds and ensure that these investments are 100% aligned to your life goals such as child’s education or retirement.



Start Investing

Benefits Of Equity Mutual Funds

The benefits of equity mutual funds are many:

1.Diversification: One mutual fund will have investments in several stocks. So if one company has a poor quarter or gets bad PR over a year, your money is not fully exposed to it.

2. Beats Inflation: Equity Mutual Funds over the long term give inflation-beating returns. You may have noticed that the corner grocery store business man may be making more money than the young software professional. That is because the returns are higher in business. On the other hand, your average FD offers returns that leave you worse off after tax. This may be a bigger risk than the risk involved in equity investment.

3. No interest rate reduction risks: Equity does carry its own risks, but these are over the short term. With non-equity investments, you run the risk of interest rate reduction. Economists tend to reduce interest rates so that businesses can flourish. Equity mutual funds may give poor returns over a couple of quarters, but over the long term, you are likely to see double-digit returns.

4. Liquidity: Open Ended Mutual Funds allow the flexibility to liquidate investments any time, but realization of financial goals can happen only by allowing equity to work over a reasonably long timeframe.

How is it different from direct equity investing?

Mutual funds allow diversification within the stock market. Whereas you’re risking your money on one particular company when you buy shares, a mutual fund is a pooled investment. For example, when Satyam’s stock crashed, their shareholders would have lost a lot, whereas mutual fund investors would not lost much less.


Who should invest in Equity Mutual Funds?

Almost everybody can invest in equity. The only exception is a person who needs money in the short term. If there are financial goals falling due within the next 5 years (retirement, children’s education, etc), it is preferable to move investments (or at least a large portion) into debt.


How long should I stay invested for?

Equity mutual funds are a good asset category for building wealth, but they are no “get rich quick” solutions. They are for the long term. If you have a financial commitment for the next 5 years, it is preferable to park the money in debt funds or invest in hybrid funds. The technical definition of long term is 10 years or more. For those not in it for the long haul, equity is not the best choice.


How much should I invest in equity?

There cannot be a generalized asset allocation for one and all. A professional investment advisor such as a Registered Investment Advisor (RIA) will help you arrive at the right allocation. RIAs are registered with the Securities & Exchange Board of India (SEBI) and play a fiduciary role. This means that they are focused on giving you right interest for a fee. It is illegal for them to make any commission income.


How should one invest in Equity?

You can invest in Equity mutual funds by choosing any of the fund categories listed below. Then entire process is seamless and can be done in minutes.
They also track the performance of the funds and ensure that these investments are 100% aligned to your life goals such as child’s education or retirement.

Start Investing





Mutual Funds are subject to market risk. Please read the scheme documents carefully before investing