Why you should invest in equity funds for at least three years

We always look for a diverse type of investment. Today, many people are turning toward mutual funds for investment. No doubt, mutual funds are considered as a great option for investment. There are different types of mutual funds, and it is said that the equity fund is the best amongst them for an individual. Invest in equity mutual funds to reap greater benefits and to secure your future.

Before investing we always think of the tenure. Like, for how long we should keep our investment continued? It is said that when you invest in equity mutual funds, you should invest at least for three years. The investment expertise always recommends investing for a longer period so that you can fetch great benefits and returns of that particular investment tool. If you keep your investment continued for at least three years in equity mutual funds, then you are likely to receive between 10-15% returns on your investment. However, if you invest for less than three years, then you are looking for high risk in your investment.

Investment is always done by keeping in mind about future conditions. You are investing your hard earned money to secure your future life. However, if you fail to invest for a longer period or minimum three years, then you are likely to face problems in the future. You need to be prepared for the worst condition and for that you need to have a strong financial background.

Equity mutual funds are not at all stressful to your wallet

Equity mutual fund allows you to make an easy investment with the help of SIP. You can start the investment with just Rs.500/month. There will be regular periodic SIP investment through Electronic Clearing Services where the money will be deducted from your bank account automatically on a fixed date.

Tax-free returns

Also when you invest your money in equity mutual fund for a longer period which is more than 12 months, then the returns on it are tax-free.

Our future needs to be secured financially and equity funds are perhaps the most comprehensive option for that. However, investing in it for at least three years is recommended otherwise you are likely to face loss. That being said, if you invest for more than three years then you will get excellent benefits on that. So, if you want to invest in ELSS then stay invested for a longer period.