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Uncovering Hidden Investment Opportunities Since 1972

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Advantage of Long Term Equity Investment

Though you would like to gain a sensible return on your investment by investing in equity, you may not have the time to endlessly track the market on a day to day basis. Equity investing also requires skill, information, and experience. While a lot of traders consider on the market, most do not succeed in getting excellent returns. This is why investing in equity mutual funds is one of the greatest ways of participating in the equity market. Here is some advantage that equity mutual funds offer:

 

Professional capability:

Equity mutual funds are managed by professional and qualified fund managers who have expertise and knowledge in financial markets.

 

Low cost of Asset Organization:

As mutual funds collect money from many investors, the cost of asset management is divided between a larger number of people, thus reducing the asset management fee per person.

 

Diversification Strategy:

To minimize risk, equity mutual funds raise your money across dissimilar securities of various companies across sectors. In this way, the funds seek to advantage from an increase in the sectors it invests in and also avoid the risk of default in any exacting sector or stock.

 

Better Regulated:

In India, mutual funds are synchronized by the Securities and Exchange Board of India, which works towards protecting investors' interests. SEBI forces simplicity on the mutual funds, which helps the investor make a knowledgeable choice. Sebi mandates mutual funds to release their portfolios commonly, which helps you maintain track whether the fund is invested in line with its purpose or not.

 

Long Term Investment

These schemes have a permanent maturity date wherein the scheme gets complete. These schemes are closed finished in nature. They are released for a fixed duration, at first, during which investors can give two units of the plan. After the fixed period gets over, the methods close for additional subscriptions. Units are selected only the persons who have invested through the initial opening time. The plans have preset maturities like three months, six months, 1 year, etc. After such a preset period or the maturity date, units of the investors are bought back by the mutual fund at the NAV appropriate on that day. The objective of these schemes is to provide a set income for a fixed period to the unit holders from a portfolio of a variety of balance instruments.

 

For more details you can consult with us at CL King & Associates.
CL King & Associates is Uncovering Hidden Investment Opportunities Since 1972. We provide investment banking, equity research, sales and trading, and investor services to corporations and institutions.
Also C.L. King’s annual Best Ideas Conference is held every September in New York City, bringing together company managements from covered (and uncovered) companies and investors for presentations and one-on-one or group meetings.

Read also: Skilled and Resourceful Equity Research Providing Precise Information

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