Direct Equity v/s Equity Mutual Fund
I
have seen many investors have often not sure whether they should invest in
direct equity or invest in equity mutual fund. According to me, both are good
instrument to create wealth in long term but both have different type of risk.
We will discuss here about these instrument today.
Direct
Equity:
Investing
in direct equity is suited for those investors who have plenty of time and
understanding of finances of companies. It is very good for those who have time
to track the financial health of the company. Such investors invest in good
companies at very beginning and earn multifold return in long term. You should
have large sum to invest in such companies at the starting.
Equity Mutual Fund:
Investing
in equity mutual fund is very good instrument for wealth creating in long term.
It is very suited to those people who have no time to track the market and
companies and also not understanding of finances. One can easily invest in
equity mutual fund in lump sum or in step by step in the form of SIP (Systematic
Investment Plan). There is no need to have large sum at initial stage of
investing like in direct equity. It also give the multifold return in long run
on your investment. One can start investing a very small amount like Rs 500
also and gradually increase this as per their income.
If you have doubt about investment
product and want more information regarding investment or you need investment
services, feel free to ask us. We also conduct the seminar on investment and
financial planning. If you are interested for conducting seminar in your city,
just drop the mail.
Warm regards,
Arvind Trivedi
Certified Financial Planner
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