Equity Investment

 

In finance equity investment is a very important concept. An equity investment is a type of investment that is invested by individuals or firms. It involves the buying and selling of stock. It is directed by regular trading exchange. In equity investment there is a huge possibility to face greater loss as well as greater profit. To be successful in equity investment it requires a substantially higher level of research and monitoring investment.

Equity investment is a long time investment. The investors cannot expect their desired goals within a short time. Therefore it is a long time process of developing wealth. The equity investment can also be fund for gaining ownership in a private company.

Some advantages of equity investment are following:

• In equity investment there is no interest charged on the determined fund.
• Investor can utilize their knowledge and skill directly in equity investment.
• There is a huge possibility for the investors to gain a greater profit in return.
• There is a loss control policy in equity in equity investment.
• It is not important to keep up with costs of servicing bank loans or debt finance in equity investment.

Some of the disadvantages of equity investment are following:

• Higher risk of loss is a very significant disadvantage of equity investment.
• Financing in equity investment is demanding, costly which creates problems to the investors.
• Decision taking right becomes shared to several bodies who are investing.

Whatever, there are both advantage and disadvantage in equity investment but the advantages attracts the investors most. It assures securities for the investors in their mutual fund and joint venture. So, if anyone wants to invest his capital focusing on the above facts then he will find equity investment as one of the best options.

Mutual Fund Policy

Mutual fund is a very dazzling and attractive domain in market investment for a developing country like India. The aspect of mutual fund has become worthy strategy in the present time (In India, the domain started from 1963). People appreciate this for the sake of the betterment of their investment in market. They found many advantages incorporating simplicity, diversity, versatility and easy accessibility. In India, lack of financial literacy is a remarkable problem among the investors. The strategy of mutual fund comes with a solution for this problem.

Most of the people of India are house centered and feel comfortable to deposit their money in a savings account of any bank rather than investing them in market for security reason. Mutual fund is like a pool for the investors where investors get a secured environment to invest their capital in market.

There are three remarkable features of mutual fund strategy that ensures the security to the investors for their investment:

• Equity fund ensures every individual investor an equal right. The limit of capital is not a crucial fact here. If there is a profit or a loss then everyone will bear the result fairly.
• Fixed income fund brings a successive income for the investors that increases interest among the people in this domain.
• Independent money market fund preserves the freedom of an investor.

A survey shows that in India, the people above 30 are more interested in mutual fund marketing than the youth. But expectedly this proportion is increasing day by day. Some experts says that the assets under mutual fund (AUM) are expected to touch Rs 20 lakh crore sooner as it was Rs 16.93 lakh crore at the end of 2016.

The above discussion shows the glorious and possible development associating mutual fund marketing in India which motivates the investors to invest their capital in market.