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HIGH RETURN MUTUAL FUNDS: 10 YEARS INVESTMENT STRATEGY FOR MUTUAL FUNDS

 

Mutual funds are one of the most preferred investment options in India. They are well-regulated, tax-efficient, and can be redeemed anytime when a financial emergency hit you. The major types of mutual funds are equity funds and debt securities, which are further divided into sub-categories. You can opt for a low return, high return mutual fund, long-term, or short-term mutual fund investment based on your preferences. However, with so many options, it is quite common to get confused while choosing a mutual fund option, especially when it comes to a high return, long-term one.

If you are looking for strong mutual fund returns, we have the best strategy for you. Equity mutual funds are what you should opt for. Predominantly dealing with equity shares, equity funds are those listed stock market securities that generate much higher returns as compared to the other types of mutual funds. The equity mutual funds return rates are further based on market capitalisation, tax treatment, geographical markers, investment style, growth prospects, and management style. Adding to this, the equity mutual funds can also be sector-specific, which are known as sectoral funds.

What Makes Equity Mutual Funds the Best Strategy for Long-Term Investment?

Because equity mutual funds give the best returns, most investors choose them. It is reported that approximately 65% of the assets are invested in various equity shares, which are on par with the rules of the Securities and Exchange Board of India (SEBI). One of the primary reasons why equity funds are a good strategy for 10 years mutual fund returns or long-term investment is taxability. Those investing in this can earn returns in two ways namely, dividends and capital gain.

Also known as the Dividend Distribution Tax or DDT, here the tax charged on the dividends is cleared by the Non-Banking Financial Company (NBFC) or asset management company whose high return equity mutual fund you are investing in. Here, you will have to pay any other tax on the returns you get. On the other hand, capital gains are taxable but not entirely. They come with tax benefits that are according to Section 80C of the Income Tax Act’1961.

Who Can Invest in Equity Mutual Funds for Good Returns?

Like said before, the equity mutual fund return rates are best suited for those people who are looking for options that offer long-term investment; however, it should match the likes of the investor’s risk-taking capabilities and investment plans; although for equity mutual funds, the risk factor is not that high. For businessmen who are looking for a high or average mutual fund return or an investment strategy for 10-year or so, equity mutual funds come in handy as they don’t require any large capital pool. Adding to this, the long-term strategy also helps in riding out any temporary fluctuations in the market.

Key Advantages of Investing in Equity Mutual Funds for Best Returns

Generally, high return equity mutual funds are managed by fund managers of an asset management company or an NBFC, which helps the investors make a better and informed decision.

  • The asset management company or the non-bank financial company (NBFC) research, analyse, and present the top return equity mutual fund options to the investors, based on which a decision is made.

  • The fund managers are more aware of the industry insights of mutual fund returns in India (profits, possible fluctuations, etc.) that you as an investor may not be.

  • Apart from this, the risk factor is considerably lessened as the fund manager of the asset management company or NBFC keep a track of several parameters concerning risks like concentration, liquidity, volatility, and so on, helping you to accordingly invest in the equity mutual fund with good returns.

  • Equity mutual funds are available in the highest number in the country, giving investors a plethora of options. If the 2018 reports are to be stated, approximately 9500 equity mutual funds were available in the country. Over the period of three years, the high return mutual funds were estimated to record a gain of 25% approx.

  • The equity mutual funds are closely monitored by the Securities and Exchange Board of India (SEBI) that helps in ensuring transparency in all the transactions if made.

  • As per the SEBI rule, the fund managers of all the equity mutual fund holders must publish their daily NAV and monthly portfolios mandatorily on the SEBI website.

 

Along with this, it is said that if equity mutual funds investors ever face capital losses, they are adjusted against the capital gains on another equity fund in the same year, helping investors earn the returns they wanted. So, investing in equity mutual fund with the best return for long-term investment is the best strategy that you can choose.

 

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