5 Crucial Things To Know Before Investing In Equity Mutual Funds
Investors India|March 2023
Investing in equity mutual funds is an excellent way to diversify your portfolio and gain stock market exposure.
5 Crucial Things To Know Before Investing In Equity Mutual Funds

However, before investing in equity mutual funds, investors should consider a number of factors. Create an investment strategy that is well-suited to your goals in order to get the most out of your equity mutual fund investments. The best time to invest in equities mutual funds is when the investor is aware of their financial requirements, risk tolerance, and time horizon.

Remember, as your funds are exposed to equities, which is a volatile asset class, it will not be a linear growth of your funds over the short-to-medium term. Equities perform well over the long-term period. Therefore, when investing in equities mutual funds, there are a number of factors that both novice and experienced investors should bear in mind. Let us explore them.

1. Link investments to goal

Do not start investing without a goal in sight. Identify, and 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

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