Investment for retirement expenses, daughter’s marriage, kids higher education or planning home for post-retirement life? All the investment goals are long term investments. Investment planned for more than 5 years are long term investment. Long term investment should give high returns. Long term investment should be planned to give returns greater than the rate of inflation. Long term Financial investment which beat inflation is Equity and it is equity which creates wealth in long term. equity is investment in stock market in india.
Stock market :
Investing in stock market is a best investment in India. But the problem is we have to spend more time to understand and follow in stock market. It is really simple if you are interested in stock market. It is hard for people who are full time employee or businessman to follow the market. Moreover if we want to investment not more than 50000 per month, it it overloaded information for us. It is best for people,
who want to invest more than 1 lakhs/month.
who can spend at least 2 hours in a day for analysis of the stock.
who can keep on monitoring the market and take decision.
People who can’t spend more time on market, there is an alternative to invest in stock market with help of fund manager. Equity mutual funds.
Equity MUTUAL FUNDS:
Investing in equity based mutual fund is smart investment in India as it is monitored by fund managers. Equity Mutual fund gives good returns in long term.
It is best for investors,
who want to invest 500 rupees to 1,00,000 rupees monthly
who work as professional and interest in investment as part-time earning.
who can spend less than 5 hours monthly in investment plan.
Equity mutual funds invest money in NSE and BSE market. The fund manager of respective fund decides the investment and diversification. Equity based mutual funds are classified as MultiCap fund, Large cap fund, mid cap fund, small cap fund, Sectoral fund and ELSS.
Multi Cap Fund : These mutual funds primarily invest in stocks selected from all the listed stocks in the Indian market.
Large Cap Fund : These mutual funds select stocks for investment from the largest 100 stocks listed in the Indian markets (highest market capitalization).
Mid Cap Fund : These mutual funds select stocks for investment from the mid cap category stocks ranked between 100 to 250 by size
Small Cap Fund : These mutual funds select stocks for investment from the small cap category, which includes all stocks except largest 250 stocks
Sectoral : These mutual funds invest in stocks selected from single sector or fits in specific theme.
Focused Fund : These mutual funds invest in stocks but restrict the number of stocks in the portfolio to a maximum of 30.
Each equity mutual funds objective is different based on investment goals. Next post will discuss scope of each funds in detail. Happy Investing.:)