Equity funds are known as low risk and high returns investment avenues. If you earn more, you can invest in equity funds which can create wealth in the future.
Though, there are various discussions about why we should invest in equity rather than any other funds. There’s a simple answer: decent returns without requiring much risk.
Here, we will know why you should treat equity as your third child, if you have a family of 2 children. We’ll bring out a conclusion after knowing some essential elements in this article.
Nowadays, upbringing a child until they get a secured position in a career has become a challenging task for parents. From education, providing their needs, and marrying them off, each needs a perfect planning from the beginning. Same like equity funds. If you plan & set your goals accordingly, on where you want to see your third child after 25 years, you will get infinite options in doing so with the schemes of equity funds.
Even after making your child self-sufficient and having a stable income, you can’t tell about any disaster that could happen, when the child can take care of himself or not. But, equity investment is that child, which after a specific period of time is able to give sufficient means to wealth that can nourish yourself and your children after a point of time.
So, investment in equity, if your treat as an additional child, it can bear you fruit like no other. With its flexibility, less volatility and tax efficiency, it can provide you enough financial assistance at the time of your needs.
In comparison to traditional assets, like NSCs, PPF, FDs, or debt funds, equity provides you a track record of higher returns at 15% over 10 years period. Equity may be purchased through SIP, which ensures if you do regular Investments, just like any other asset, you can get average returns at a reduced tax rate.
Contrary to other volatile investments, you may extra benefits from the long-term investments in the equity funds. Stocks are risky assets. Equity funds can benefit you from tax-saving as well as wealth development, which makes it the only tax-saving option that has the possibility to provide higher returns, which can outperform inflation. So, if you have an appetite to make investment in a transparent & valuable instrument like equity can provide you with greater value. Now, coming to the same matter, if you invest on your third child, as you are investing for your 2 children, it will become a first sign of becoming wealthier in the changeable times.
