Today's Top Gainer
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Investing in mutual funds via Systematic Invest Plan (SIP) is the best way to creating wealth in the long-term. SIP is a way to regularly invest a fixed amount in mutual fund schemes.
The equity market has been volatile so far in April-May 2018 due to rising crude oil prices and bond yields, uncovering of governance issues in banks and the possibility of four rate hikes in 2018 in the US. Therefore, investors should use the current volatility as an opportunity to create wealth in long-term.
HDFC Prudence Fund has the largest AUM of Rs37,998cr as on April 30, 2018, among all equity-oriented mutual funds. The fund started its journey on February 01, 1994, and has given a return of ~18% CAGR since then, as on May 20, 2018.
The best way to get the benefit from volatility is investing in mutual funds via Systematic Investment Plan (SIP). SIP is a way to invest via which investors can invest a fixed amount in a mutual fund for a defined period. SIP helps investors in ‘Rupee Cost Averaging’ and follow a disciplined approach without worrying about the short-term volatility in the market volatility.
Equity mutual funds continued to receive robust fund inflows in February 2018 despite reintroduction of the long-term capital gains tax in the FY18-19 Union Budget and a volatile month, reflecting investors' commitment to long-term investments.
In 2017, Mid-cap and Small-cap stocks outshined the Large-cap stocks. BSE Mid-cap and BSE Small-cap gave magnificent ~48% and ~60% returns in 2017 respectively.
Putting money in a savings account and FD is also not a prudent decision as the interest rates are low and taxed. In a scenario where investors don’t want to take risk in the equity market and don’t want to invest in debt investment because of their low returns, one can choose to invest in Equity Oriented Saving/Income Funds.