Alternatively, you can invest
in equity mutual funds which can provide you 12 % to 15 % annualized returns in the long run of 10 to 15 years.
As you can see from the following chart, which shows the percentage of index fund assets as total
assets in equity mutual funds from 1985 to 2007.
In case of direct equity investor may lose money due to concentration but
in equity mutual funds due to diversification and fund management.
If you make a gain / profit on your investment
in a Equity Mutual Fund scheme that you have held for over 1 year, it will be classified as Long Term Capital Gain.
Shall I cancel the SBI eShield plan and opt for HDFC Click 2 Protect Plus because surplus, if invested
in Equity Mutual Funds through SIP will give good returns.
You may invest the saved
premium in equity mutual funds for long - term goals like Retirement or to buy Term insurance plan, Personal accident cover & health plan.
If your
holding in an Equity mutual fund scheme is less than 1 year i.e. if you withdraw your mutual fund units before 1 year, after making a profit, then the profit will be considered as Short Term Capital Gain.
We selected a guy who suggested that a 14 % return on our investments was quite doable if we socked away about 80 % of our
cash in equity mutual funds.
Finally, in the past quarter, bonds declined while equities rose, reversing most of last year's divergence (though interestingly, industry data continues to show
redemptions in equity mutual funds and inflows in bond and hybrid funds).
As you now know, holding your kids»
RESPs in equity mutual funds so close to when you need the money wasn't the best idea, but I bet there is another issue at play: mutual fund fees.
Suggest you to give it as CASH and let his parents invest in his name as per their requirements,
preferably in Equity mutual funds for his future education goal expenses.
Achieve long - term capital growth by investing
primarily in equity mutual funds for higher growth potential, with some exposure to fixed income securities for diversification
Suresh: I am saying that, invest 20k each month this
year in an equity mutual fund and next year invest 22k each month, the year next to that invest 24.2 k each month, i.e. a 10 % increase every year.