SURVIVE: The Only Secret to Create Wealth From Equity Mutual Funds
Equity is the brightest star in the universe of the mutual funds. It is because of its high rewarding nature. Every investor wishes to yield higher returns from the equities, but not all can achieve the goal. Yes, the fact is quite disappointing, but the reality is always bitter. However, there is a secret which can help you in reaping excellent benefits from your equity investments.
You must have heard all experts suggesting to stay for the longer tenure when you invest in equity funds. Mostly, they also say that if you can survive for the long term in equity investments, then you may end up with incredible benefits in terms of returns.
Generally, equity mutual funds are known for the high-risk, high-profits fundamental. In this, the part of high profits gain the attention of all the investors, but when they look at the risk part, half of the horde steps back. Further, when the remaining portion of the swarm invests their money in equities, many of the participants again step out of the zone due to the frequent swings in the market trend. Only a few can survive till reaching the ultimate target and fetch the extravagant returns on their investments. If you too are one among those who have never tasted the benefits from equity, then know the secret to earning higher returns by investing in the equity mutual funds.
SURVIVE is the only thing which can help you to attain your goal of wealth creation in equity investments. But, to survive comfortably, let’s understand the relative meaning of the word SURVIVE in equity funds:
Su - Subscribe to equity mutual funds
R - Right choice is crucial
VIVE - Long live investments
Which make it, Subscribe to a Right equity fund for a longer tenure.
From the points as mentioned above, you must have got an idea that what does the word SURVIVE mean in terms of equity fund. Now, let’s understand it more clearly and start a journey toward wealth creation:
Journey to Wealth Creation
First and foremost, you need to subscribe to an equity mutual fund. It means, you need to start investing in the equity fund. There are many investors who are still traveling the short distance rides of the debt funds because of their fear of equities. But, they end up with earning small profits only. For the bigger objectives like wealth creation, one must invest in the equities. Once you are ready to travel through the equity world, you’ll have to switch to the second task which is to choose the right one from the box.
Right choice matters a lot because a wrong one can make you lose everything. So, do necessary checks and make a proper selection. If you have less information about how to find out the suitable one, then you can also take assistance from the experts. There are many parameters which you can consider for choosing a perfect fund to invest in. When you are done with the right selection of the equity fund and have invested your money in it, you are required to do the third and final step, i.e., stay tuned for the long term. It is the most important step that can decide your journey in either way depending on the tenure for which you stay invested.
The last four letters of the word ‘survive,’ i.e., VIVE means ‘long live’ in French. It denotes the long life of the subject. In equity fund investments, when you hear the word survive, it means subscribing a rightly chose equity fund and staying tuned for a longer tenure. In short, vive denotes staying invested for a longer term in order to reap excellent benefits.
Henceforth, if you can survive in the highly fluctuating waves of the equity market, then you may end up with amazing returns on your investments. Most of the people fail in the third step; as for one or the other reasons, they pull back their investments. The reasons can be:
Equity markets are known for their high volatility and when the market shows the aggressive moves, many of the investors cannot survive the highs and lows and finally decide to quit. Some fetch their money back from the investment just because they suddenly face the requirement of emergency funding and due to not having any extra perpetration for such uncertainties, they are left with no option other than redeeming their only investment, i.e., equity. For such cases, one must have an investment in liquid funds which provide the best solution to such uncertainty. You can also invest in our Smart Savings Account which helps in deploying money in the liquid funds along with providing many exciting benefits to the investors which include instant redemption, zero balance requirement, etc. When you have a liquid investment to meet such uncertainty, you will not require redeeming your equity fund investments. Thus, you will be able to stay invested for a longer tenure and enjoy higher benefits.
In the end note, we will only say that if you try achieving your long-term goals, then you will surely get success. Just take note of the hindrances like emergency fund requirements, because they may force you to redeem your equity investment.
- LTCG Tax Is Not As Negative As it Seems; Here’s Why?48054 min read Jan 01, 1970
- Sensex Plunges Over 1000 Points; Should You Buy or Hold Your Investments for Correction?48813 min read Jan 01, 1970
- Sensex Dives Nearly 840 Points: Things to Consider and Experts’ Take49833 min read Jan 01, 1970