Top 3 Advantages Of Investing In Equity Savings Scheme

Posted by Raghav Mehera on August 3rd, 2018

Nailing down the right investment avenue is a crucial thing to do. If you wish to leverage your finances or make the most of your investments, it would be imperative to identify a sector where you can do that effectively. Channelising your finances in equity savings scheme is the right thing to do. Quite unlike other investment channels, equity savings fund come with special benefits and advantages. Before taking the final plunge, it’s crucial to have a clear idea of the how’s and why’s.

Why opt for equities?

Every potential investor would like to channelise his finances in the right place. Equity can be a great option for those who wish combine the benefits of capital appreciation, market volatility and regular income.

Although investors might come across quite a few risks and glitches, there’s no denying the umpteen benefits assured by equities. Here’s a report:

1. Tax benefits: Equities ensure tax benefits to a great extent. In case of bank deposits, fund owners have to bear the brunt of taxes at marginal rates. However, what you earn from your equity funds isn’t taxable if the ‘holding period’ exceeds one year. It is also imperative to remember that if one decides to redeem his units, capital gain payments at 15% would be charged.
2. Less volatile: Presence of derivative strategies, debt and arbitrage makes the fund less volatile. In simple words, every investor would like to invest in a fund that ensures stable returns. As an investor, you would surely wish to reap the benefits of capital appreciation along with market volatility, as well as a regular flow of income. By investing in equities, you will have the opportunity to get all of it.
3. Differentiations from balanced funds: Mutual funds include balanced finances where fund managers have the opportunity to invest at least 65% of their money in debt and the other portion in equities. Compared to these funds, equity savings plan involves a flexible equity component. As a result, investors can look for reasonable and stable returns.

These advantages and highlights present a crystal clear picture of equity savings funds. If you are planning to invest and channelise your funds in the right avenues, equity can be an excellent choice. However, considerations of the plans, schemes and returns will be a major part of the entire process.

Selecting the best plans

When it boils down to choosing the scheme, it becomes imperative to take certain important factors into consideration. Expert suggestions and support are always welcome and it’s better you associate with companies who have years of experience in this sector. Some of the leading service providers offer optimum support to clients in a unique way. Even if you face hindrances while understanding a particular scheme, expert support as well as online help will be available too.

Every investor is different from the other which makes their investment needs and decisions different too. Before channelising your finances, make sure you consider all the important factors that help you nail down the best equity savings scheme. That would increase your returns to a great extent.