Over the last one-year period, the returns across equity fund categories have been in the range of 50 per cent to over 100 per cent. Expecting such similar returns in the future is not the right thing but one thing that clearly comes out is the power of equities and the long-term potential of equity to deliver a higher inflation-adjusted return. Effectively, one good year of performance has shored up the performance over a longer time frame of 3-5-10-years as well. The average return over a longer period has now come within the range of 12 per cent which most equity mutual fund investors look forward to.
With high returns comes high volatility and risks. While the return from the equity asset class has the potential to beat returns of other asset classes in the long term, there are various risk factors at play. The risk-reward ratio in the case of equity-oriented investments such as equity mutual funds and direct stocks is high. This means, for high returns, there is an element of high risk as well. Therefore, it is always better to hold a well-diversified equity MF portfolio. Higher exposure to large-cap schemes and some exposure to midcap and small-cap funds can be one approach to utilize the potential of equities in the long run.
Here are a few key things that may help you build a more robust MF portfolio for the long-term goals.
01.SIP or Lumpsum
If the goal is long-term, invest the investible surplus that you have. Trying to time the market may not be fruitful in the long run. For salaried employees, a regular saving plan helps as one may need to invest each month through the systematic investment plan (SIP).
Bu hikaye Investors India dergisinin June 2021 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Investors India dergisinin June 2021 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
Indians are Developing Weak Bones
In India, 1 out of 8 males and 1 out of 3 females suffer from osteoporosis, making India one of the largest affected countries in the world.
"The strategy behind the Tata India Innovation Fund centers on identifying companies that are driving transformative or incremental changes through innovation"
Yes, we certainly believe innovation is a powerful theme with immense potential for the coming years, and we are excited to bring it to our investors.
What is Hybrid Mutual Fund?
Hybrid Mutual Fund is a combination of more than one type of fund. While they invest in shares of companies listed on the exchange, like equity funds.
Should you invest in dynamic bond funds?
Dynamic bond funds have delivered a category average return of 8.68 per cent over the past year, making them the fourth best-performing category, following long-duration funds, constant maturity gilt funds, and gilt funds. With interest rate cuts yet to begin, these funds remain a viable option for investors seeking to benefit from possible rate reductions.
The Multicap Solution to India's MultiDimensional Growth
India is entering a transformative era of economic growth, backed by a unique combination of demographic strength, infrastructure development, and rising global prominence.
The Long-Term Benefit of Investing in Children's Future
A child is the most treasured part of any parent's life, and naturally, we want to give them the best of what the world has to offer. This often means not only ensuring we can meet their needs but also nurturing them to pursue their unique aspirations. Each child has their own dreams and challenges, making the early years critical as they lay the foundation for a healthy and fulfilling future.
ASK THE EXPERT
Ques. One of my friends told me that your company provides detailed Retirement plans. I want to know what is the procedure to get my Retirement plan. I will be retiring in March 2025. R.P Gupta, Noida
How to Naturally Reverse Fatty Liver Disease
The liver, located on the upper-right side of the abdomen, is the body’s largest internal organ and plays a critical role in detoxifying the blood and processing nutrients.
Banking sector which has underperformed in the last two years, now offers a favorable risk-reward profile
Do you think the market is overpriced? Is yes, should investors refrain from investing in index schemes at the current valuation?
India will continue to enjoy benefits of a close US relationship and trade will continue to grow
Q1. The US elections are said to be one of the closest till date, what impact will the election of a Republican / Democratic party have on the US economy and how is that going to affect India in the short as well as the long term?
