5 Things Equity Mutual Funds Investors Need To Consider Before Investing

With the stock markets touching new all-time highs and a stable government with a full majority at the center, the interest level in participating in the equity markets is looking to go up.

Although markets at their peak carry high valuations and stocks don’t come cheap, for long term investors, any time is a good time to derive the potential of equities in their favor. There could be reasons such as corporate earnings, falling consumption, etc. but these are cyclical in nature and can rebound in no time. For a long-term investor, ignoring short-term indicators and such events are suggested by most planners.

For both new and existing investors, there are quite a few things to keep a note of before investing in equity mutual funds. Let us explore them.

1. LINK INVESTMENTS TO GOAL

Do not start investing without a goal in sight. Identify, estimate the inflation-adjusted value for each of them and then start SIP towards them. For unmarried, starting with as little as possible and building a corpus for marriage needs or even otherwise helps in creating a habit to save. By investing regularly, you not only form a healthy habit but also keep away from the cardinal mistake of trying to time the market.

2. ADOPT THE SIP APPROACH