What are Equity mutual funds: Equity fund is a type of mutual fund which invests money in stocks. These funds are also very helpful in getting high returns through the investments in shares of many companies.
You must have seen a lot of people who wish to make investments in equities but all of them hesitate because of less knowledge and misinterpretation. They lookout for the best equity mutual funds for themselves as Equity fund schemes are the best options for the individuals who don’t have any knowledge about the funds.
There are many reasons why you should invest in equity mutual funds. Some of the benefits are provided in this article. These points will let you know all the advantages of the investment with equity funds.
Reasons for investing money in equity mutual funds:
1. Professionally managed funds: If you are buying a car and you are going to pay for it but before paying anything you need to get advice from an expert who can tell you about all the features of that car. Similarly, if you have a planning of investment than companies will provide professionals who know the objectives of the scheme and invest your money in the equities. After investing your money, they spend their time researching to know the performance of the companies in the future where the money has been invested by experts.
2. Funds with Goals: If you are a person who has long term investment objectives than you should go for equity mutual funds. The equity mutual funds have three categories which are small-sap, mid-cap, and large-cap.
3. Modification of portfolio: While investing in equity mutual funds schemes you can get exposure to different types of stocks. You can make small investments as Rs500. Risk of losing money in any of the investments get reduced with the help of modification of portfolio. Also, schemes such as equity mutual schemes are affordable.
4. Equity mutual fund schemes are liquid: These funds are very liquid. A person can redeem his invested money anytime he wants to redeem. Thus if you are a person who needs money than you can redeem your money anytime.
5. Regular investments: In equity mutual funds there is a facility of investing small sums of money in systematic and regular intervals. This can be done through SIP. Also, beginners can easily invest in schemes of equity mutual funds. Stocks are bought with the help of regular investments.
6. Tax advantages: Many tax benefits are provided by this equity mutual fund scheme. The equity-linked saving scheme is provided by the government under section 80C of income tax which provides tax exemption.
Thus, in short, it can be said that investing in a mutual fund will provide you with lots of benefits. Keeping a look at all the reasons for investing in equity mutual funds you should start investing in mutual funds. You can also start by investing a small amount of money.