For an investor, who has a long-term outlook to build wealth from his savings, a part of his savings should definitely be invested in equities or equities. mutual fund Schemes

It is a fact that in the long run, equities can be the best performing asset class.

Now, for an investor who has the knowledge to understand the financial health of the company and has experience in the capital markets, buying shares of good quality companies is a good way to invest in stocks. Another good approach, especially for those investors who do not have financial background or knowledge and who want to have an experience of understanding the financial position of the company, can choose to invest in equity mutual fund schemes.

What to do with both types of investments:

1. start early
2. Invest regularly (SIP can be an option)
3. Think long term (minimum 5 years to 7 years)
4. be patient
5. ignore volatility
6. ignore the noise
7. stay the course

Investors should understand very well that investing in equity simply means investing in businesses. Hence, an investor is actually becoming a bigger and better businessman by investing in equity or equity mutual fund schemes.

Investors should also be well aware that in the short run, the prices of company shares or the value of mutual fund schemes will always go up or down due to geopolitical conditions. No one will believe me, no one on earth can predict the market in the short term. Therefore, investors’ decisions should never be influenced by such short-term volatility.

An important aspect of investing through mutual fund schemes is the selection of the right distributor. Investors should always choose a distributor with high integrity, high experience and deep knowledge of the stock market. The more years a distributor has spent in the market, the better his advice will be.

Stock or equity mutual fund schemes give returns higher than inflation, which helps to build wealth, one of the reasons is that good companies will always pass on the increase in the cost of their products to the customers and maintain their profits and growth.

Views are personal: The author is Pukhraj Lunkar, a mutual fund distributor from the North-East.


Disclaimer: The views expressed are those of the author and are personal. TAML may or may not subscribe to it. The views expressed in this article/video are in no way trying to predict the markets or time them. The views expressed are for informational purposes only and do not imply any investment, legal or taxation advice. Any action taken by you based on the information contained herein is your responsibility alone and Tata Asset Management will not be liable in any way for the consequences of such action by you.

Mutual fund investments are subject to market risks, read all the scheme related documents carefully.