Browse through the list of Equity Funds for investors seeking capital appreciation and growth. Look for higher returns for a longer period of time by investing in equity funds. It is a vehicle of choice for those investors who have a medium to high risk taking appetite. Although it reflects a high-risk in the short-term but investors consider it for capital growth in the long-run. These funds invest directly in the stock market. From an Indian perspective, equities have been one of the best performing asset class over the last few years. These funds focus on those stocks that are driven by long-term fundamentals. Equity funds are ideally suited for those who are at the beginning of their earnings stage and could be one of their desired investment option for a longer period.
Whether you're focussing on saving for your future plans or for building wealth for yourself and your family, equities would be the best choice for covering your needs. As equities favour those investors who aim for the longer term. Therefore, the 'time' factor becomes crucial provided discipline and focus become the key ingredients for you to wait for amassing higher returns. An ideal time horizon of 3 to 5 years is considered for investing in equities.
Staying invested for the longer term in equity invites better chances for gaining growth percolates from stock market movements of the listed companies who tend to start reaping maximum profits. As the stock market movements are noisy and random in the short term but start giving stabilised returns in the longer term due to their linkage with the corporate performance.
Investing early in equity markets is a better idea to start with, as the probability of building wealth for your family or amassing wealth for your child's university education becomes much higher.
Any equity investment in order to become successful over the long term needs to consider not only the return prospects but also the potential risks. As the equity product suite consists of that category of equity funds whose focus is not just to bag the returns but providing risk-adjusted returns. This approach has allowed various equity funds in the product suite to deliver consistent returns since its inception.
However, the investing style of equity funds is either actively or passively(index fund) managed. The active style focusses on outperforming the market compared to a specific benchmark whereas passive style aims to imitate the investment holdings of a particular index.Whatever equity product suite you may choose is solely dependent towards generating returns as per their investment objectives.
In contrast, the investment objective of equity fund you may choose should perfectly correlate with your investment objective which will help you in achieving effective returns subject to your stay for a longer-term. So, better choose your equity fund diligently in order to be successful in your equity investment.