Equity Mutual Funds primarily invest in equity and equity related instruments for income generation. These are a pool of professionally managed funds that invest in large, mid and small cap company shares and other equities depending on the nature of the scheme, its asset allocation strategy and its risk profile. An equity mutual fund is ideal for targeting your long term financial goals in life for several reasons. First, equity investments are affected by daily market volatility, making them a volatile investment for short-term investors. However, equity schemes have been optimistic in offering good capital appreciation over the long term. Some also believe that apart from helping in wealth creation, investors with long-term investment horizons may also be able to outpace inflation.

Another advantage of investing in equity mutual funds is that they provide a large amount of liquidity for retail investors. Most equity mutual funds do not have a lock-in period, except ELSS. Since there is no lock-in period, an investor can choose to redeem his equity mutual fund units, depending on his income needs. Only tax saving schemes like ELSS come with a mandatory lock-in period of three years. If you leave ELSS, investors can sell their equity mutual fund investments in a simple and easy way. Depending on your current income needs, you can choose to redeem on select units while the remaining amount is reinvested. Under normal circumstances, the AMC will remit the redemption proceeds within 10 business days from the date of receipt of the request from the mutual fund holder. Investors are free to stop their investment in Equity Mutual Funds if the scheme in which they have invested is not performing or performing as per their expectations. Further, investors can either choose to remain invested till the performance of the scheme returns to normal or redeem all the units immediately after discontinuance. During poor performance of the scheme it is better to stay invested rather than redeem your units as this can only lead to loss.

Consider starting SIP

Systematic Investment Plan, abbreviated as SIP, is an easy and hassle-free way to invest in Mutual Funds these days. The term SIP has become so synonymous with mutual fund investment these days that a lot of investors feel
sip And mutual funds are the same. With SIP, an investor needs to complete all the pre-investment formalities and decide the monthly SIP amount they are comfortable investing periodically. Once you become a KYC compliant person, every month on a specified date a pre-determined amount is debited from the investor’s savings account and electronically transferred to the Fund. SIP is ideal for anyone who wants to develop the discipline of saving regularly.

“This is an investor education and awareness initiative by Axis Mutual Fund. Investors need to complete a one-time KYC process. For more details visit www.axismf.com or contact us at [email protected]. Investors should only Should deal with registered mutual funds, details of which are available at www.sebi.gov.in – INTERMEDIARIES/MARKET INFRASTRUCTURE INSTITUTIONS section. For any grievance redressal, investors may call us at 1800 221 322 or write to us at customerservice@ axismf.com or register a complaint on SEBI Scores Portal https://scores.gov.in.