- Invest in multiple stocks through one portfolio
- Regular monitoring by experts
It is a universally accepted fact that equities deliver better returns than other asset classes. The reason is simple – they carry a higher risk. And, according to the Risk-Reward ratio – higher risk = higher potential returns. Buying a share entitles the investor to the profits booked by the company but also the losses. A shareholder is like a partner of a company without having to manage its operations. However, buying equities directly requires the investor to choose the right companies so that he can earn good returns. A wrong choice can lead to potential losses.
This is where an Equity Mutual Fund Scheme steps in. Here are the features:
Hence, in many ways, Equity Mutual Funds are an efficient way of purchasing stocks and creating wealth over the long term.
Regardless of the asset class invested in, a good investment portfolio is one that is diversified, is regularly monitored and rebalanced to stick to the financial goals. An Equity Mutual Fund does precisely that and helps you earn good potential returns without having to personally choose, monitor and manage your investment in individual stocks.
An open ended fund of funds scheme investing in equity oriented schemes, debt oriented schemes and gold ETFs/ schemes.