Mutual fund schemes have emerged as a simple and effective financial tool for creating wealth over the long term. Among the different kinds of MF schemes, such as equity funds, debt funds or a mix of them, the equity mutual funds are suited for long term goals. As the name suggests, the equity funds invest in equity assets i.e. in the stocks listed on the stock exchanges. The returns generated in equity funds are not fixed nor guaranteed and instead are market-linked. This means, the investment in equity funds is prone to fluctuations and the NAV of these funds can move up and down over time.
The good part is that history has shown that the equites tend to drift upwards over the long term. To an investor, it can, therefore, be construed as
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