Shares/Stock Investing in Equity and Balanced Funds

[raaman]

Investing in equity and balanced funds.

Invest for the long term is a small piece of advice regularly given out by many mutual fund companies and investment advisors. This advice is especially true for certain mutual funds like equity and balanced funds. We have to understand why experts give such advice. What will happen in the long run?

Are there any advantages in investing for the long term? Here, think of your mutual funds as a batsman. A great batsman has a certain style of batting. At the same time, a good batsman with years of steady playing experience will score a lot of runs in the match.

Here, we are considering and talking about the greatest batsman. Of course, every great batsman might have had some good and some bad games in his career. But, on an average he is a good batsman. In the same way, a good mutual fund is also subject to market fluctuations.

Most of those market fluctuations are due to factors beyond the control of the fund manager, for which the fund manager cannot do anything. However, an investor can benefit from long term investment in these funds. So, if you can, invest for the long term, especially in equity and balanced funds.

 

[niche]

Equity mutual funds are risky, especially if you invest when the stock markets are at an all time high. When the stock markets are crashing, the share prices will decreases,and if the fund manager has not selected the right shares, the investor is likely to make a loss. So it is advisable to spend some time researching before investing money in equity mutual funds before taking a decision. It is also better to invest only a small amount initially to check the performance of the mutual fund.

 

[Suba]

If you enter a mutual fund and are going to invest in Balanced Funds or we know them as mixed mutual funds, then you will automatically invest in the three types of mutual fund investment instruments such as Equity, Money Market and Fixed income funds.

While the percentage scale of investment fund allocation will depend on the type of Balanced fund investment, such as conservative, moderate or aggressive. For conservative types of investment, it will be allocated more in the money market and fixed income. Moderate type of investment will be allocated at the same rate for the three types of mutual fund investment instruments, while for the aggressive type of investment, a greater allocation will be made to equity.