Hello Readers! 

Stock market Indices are trending high, which means in near future, it can witness the participation of more new investors. However, there are still many who that believe, ‘Buy Low, Sell High’ is the formula that helps make your investment successful and fruitful in the stock market. 

Well, saying this formula is much easier than implementing it. To follow this formula, and investors have to wait for the market to fall so that they can take part in stock market investment. This waiting game is preferred by many, but at a time when the market continues to rise, the opportunity to invest in a down market is almost lost. However, this ideology is only restricted to those who look to invest in the stock market from a short-term perspective.

If you are an investor with a long-term perspective, you do not need to wait for the market to fall and then invest in the stock market, rather you can start investing today, just pick the right Equity mutual fund scheme and route your saving in the same.

Here are some investment tips that investors must follow, to get a fruitful return from their Equity mutual fund investment in the long term.

Goal Linked Investments………

When you plan to invest for a specific goal, the investment becomes much easier to plan. For example, when you plan for your retirement, you already know the time period of your investment and how much big corpus you have to create. When you know these two, it becomes easier to calculate how much per month you will be required to invest in the mutual fund to accomplish your goal. The amount that you wish to save should be inflation-adjusted to avoid under-investing.

You may start saving separately towards your goals that could be home buying in 3-5 years, children's education in 15-18 years, or even your own retirement almost 30 years away.

Construct An Investment Portfolio……

To a novice investor, it is advised that start your investment with an equity fund that has low risk, less volatility, that is one can start investing with large-cap funds. And as you move ahead on your investment journey, start creating a strong portfolio. For that, you can go adding mid-cap and small-cap depending on your risk profile and goal horizon.

While picking out funds make sure you pick those whose performance is consistent and generates benchmark-beating returns over the long term. Experts advise doing not to cling to thematic or sector funds unless you can track their performance consistency.

Investing in this way also helps you diversify your investment portfolio that ultimately reduces the risk from your portfolio.

Invest Through Systematic Investment Plan……….

The prominent benefit of investing through SIP mode in mutual funds is that you don’t have to remember to invest in mutual funds, instead, it will be automatically debited from your saving bank account and will be transferred to your mutual fund's investment. Further, you may deploy any lump sum preferably into the same MF folio as and when a surplus is there.

To start a SIP, you do not need to do much, just fixed a monthly SIP amount, a due date for deduction every month, and submit your bank details in the SIP form. You are done, once your SIP will be initiated you will be confirmed by a message on your registered phone number or through a mail on your registered mail id.

Make sure that your account has sufficient balance before the due date of SIP installment, as if not, then your SIP may bounce which will ultimately affect your investment growth.

Do Review On Regular Basis……

Other than the Index fund, which is a passive fund, you may have to review the performance of the MF schemes in your portfolio. The active funds where the performance depends on the acumen of the fund manager, among other factors, need a regular review. Check their performance against peers, benchmark, and category returns, and take appropriate action.

Basically, if you are also one among those who are waiting for a downfall in the stock market to initiate their participation, then I advise doing not to waste time, in timing the market, instead plan your investment in Equity Mutual Funds today!

Keep reading our articles for more updates on finance and investment!!

For any kind of query you can contact us at Shri Ashutosh Securities Pvt Ltd., we are here to help you in any way possible.

Happy Investing!

(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee to future returns).