Investors should leverage the equity boom with the right fund choice. Investments in equity instruments will make investors richer in the long run, say market experts.

Asserting that equities will continue to be an asset of choice over the next decade too, market experts justified their observation by stating that the macro economic conditions are improving, entrepreneurial environment is positive and there is good value creation potential in a host of businesses.

The average quarterly returns from Indian equities have been consistently strong, especially in the five different periods of rising US bond yields monitored over the past 25 years.

But a majority of investors watch the markets go up and down, and count their profits/losses on a daily basis. They only look at the short-term performance and invariably sell their investments, sometimes even putting a stop to their systematic investment plans.

Investors need to understand that due to power of compounding, equity-based instruments can make the investor richer as even a one or two percentage point higher return can fetch a much bigger corpus than what pure debt-based investment will deliver, said DSP BlackRock, comparing the equity fund yield with NIFTY-500 benchmark.

Commemorating the completion of 20 years of its equity fund, the fund registered a CAGR returns of over 20 per cent since inception in 1997 beating the NIFTY-500 bench mark which gave a CAGR of 13.6 per cent in the same period.

The equity fund has been ranked among the top three funds in the equity multi-cap category, the company said in a release.

This open-ended equity multi-cap fund has registered an AUM of Rs 2,395 crore as at end April, 2017. The fund has delivered returns of 5.06 per cent in one month, 30.94 per cent in one year and 21.52 per cent in three years.

The fund earmarks 48.24 per cent in Giant, 15.17 per cent in Large and 29.09 per cent in Mid-Cap segments and 7.5 per cent in Small-Cap segment.

Related Topics
comment COMMENT NOW