High Risk but High Returns with Equity Funds
Equity funds, Long-term funds also known as Stock funds because, in these funds, the full amount is invested in the stocks to provide high returns but with high risks. These funds invest principally in stocks and managed actively or passively [index fund].
Investing in equity mutual funds is best for long-term goals like investing for retirement, children’s wedding, our house, own marriage or other long-term goals.
To check, how much to invest in order to achieve the future goal you can also use equity mutual fund calculator provided by many companies to check and accordingly you can plan the amount to start with.
There’s no lock-in period for the investment, investment can be withdrawn any time but if redeemed before certain period an exit load is deducted set by the mutual fund company.
Investing in SIP:
Monthly SIP [Systematic Investment Plan] is just a way of automatically investing the money on a Monthly basis in the selected scheme, in a disciplined manner.
An investor can invest in mutual funds taking the SIP route for a year or two years.
As suggested by many advisors it’s safe to invest if you plan to keep your investment untouched for a minimum period of 5 years
let’s compare Equity Funds vs Debt funds:
- The risk is high in equity fund but low in case of debt funds.
- Returns are high in equity fund but low in case of debt funds.
There are many mutual fund companies providing different types of equity funds, equity funds India to invest in.
Let’s see few equity funds examples with good returns a per 2018 update:
- SBI BlueChip Fund-Reg, growth.
- Birla SL Frontline Equity Fund, growth Rating.
- Franklin India Prima Plus Fund, growth.
- Mirae Asset India Opportunities Fund-Reg, growth.
- HDFC Mid-Cap Opportunities Fund growth.