Are Your Equity Fund Investments On The Right Track?

The stock market performance over the last one year or so has encouraged an increasing number of investors to include equity funds in their portfolio.

This fact is clearly evident from money being mobilized by mutual funds from domestic investors. It is heartening to see most investors taking SIP route to invest in equity funds. It is a proven fact that a systematic approach allows investors to avoid committing a large amount at a particular market level. In fact, investors benefit from “averaging” as they get to invest in the stock market through well-designed portfolios by professional fund managers. Moreover, this disciplined approach ensures that investors get into the habit of keeping some money aside for investment at a pre-defined interval of, say, on a monthly basis, rather than investing whatever is left on and off. Simply put, a disciplined approach eliminates uncertainty from investor’s investment process.