Is it good to invest in equity funds?

Your decision to invest in equity funds must be in sync with your risk profile, investment horizon, and objectives. Generally, if you have a long-term goal (say, five years or more), then it is better to invest in equity funds. It will also give the fund much needed time to combat market fluctuations.

Is it safe to invest in equity mutual funds?

If you’re concerned that mutual funds are a type of dodgy investment, rest assured that they’re completely safe. No mutual fund house can steal your money because it is regulated and supervised by the SEBI (i.e. Securities and Exchange Board of India) and the AMFI (Association of Mutual Funds in India).

Should you invest in a fund of funds or private equity?

In addition, because of its size and diversification, a fund of funds has the potential to offer less risk than you might experience with an individual private equity investment. Mutual funds have restrictions in terms of buying private equity directly due to the SEC’s rules regarding illiquid securities holdings.

How long should you hold a private equity investment?

Investors should plan to hold their private equity investment for at least 10 years. However, there are non-direct ways to invest in private equity, such as funds of funds, ETFs, and special purposes acquisition companies. Why Invest in Private Equity?

What is an equity mutual fund and how it works?

All equity portfolios need some buying or selling as individual stocks become more or less desirable. If you are trading stocks yourself then these transactions may mean a tax liability. However, in an equity mutual fund, this trading is done by the fund manager inside the fund.

Should you invest in the high stakes world of private equity?

Unless you are willing to put up quite a bit of cash, your choices in investing in the high-stakes world of private equity are minimal. Private equity investing includes early-stage, high-risk ventures, usually in sectors such as software and healthcare.