Long-Term Investment with Equity Mutual Funds

by | Apr 13, 2018 | Investment Services


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Mutual fund investment is on the rise and has been giving a tough competition to other investment options like investment in gold or in real-estate.

Most suitable for long-term investment, equity mutual funds have recorded strong influx of Rs. 20,362 crores in August 2017.

Broadly classified into three main categories:

  • Debt,
  • Equity, and
  • Hybrid

Amongst these, equity funds have been the most sought-after mutual fund investment option.

Equity mutual funds are the ones invested in the stock market. Such funds are invested in reliable companies that are most likely to give good returns on the investments made.

For investment in equity mutual funds, always rent the expert services of a fund manager and his/ her research team that has the apt knowledge of the best stocks in the market to invest in.

Equity funds itself can be sub-classed as Diversified equity funds, sector and thematic equity funds, small-cap, mid-cap and large-cap equity funds and index equity funds.

Perhaps it is important to know the reason behind the popularity of investment in equity mutual funds.

The benefits of equity mutual funds have particularly led to the large inflow of investment in equity MFs. These can be stated as below:

Ease of liquidity – You can get your earned profits back hassle-free with equity mutual funds.

Returns that are tax-free – If a holding period crosses a time of 12 months, your returns on equity mutual fund investment become tax-free.

Best long-term investment option – In order to see good returns on investments in reputed companies of the stock market that survive any glitch in the markets, equity mutual funds are the best and safest option.

Capital appreciation – In case of any inflation in the prices of the stocks you have purchased, you are sure to get its benefits over a long-term period.

Diversification of portfolio – Equity mutual funds invest across many stocks in the market. In case if one of the stocks does not perform well, other stocks that do well make up for the under-performing stock.

Mutual fund companies like Quantum Asset Management that work on the basis of honesty and transparency, offer equity mutual funds to invest in which have given delivered great returns.

So, if thinking of mutual funds for as a long-term investment, consider equity mutual funds for reaping steady returns.

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