Secret of making money in equity funds

Secret of making money in equity funds:

Always remember to have a look at the previous performance, which is a good indicator of future returns. Five years of track record is enough to predict it. Just check whether the equity fund have consistently delivered above-average performance.

You can trust the top five equity funds that are visible after the five years of market weathering process to be better placed and to do well in demanding conditions. Its not necessary that the fund should do consistently well for five continuative years.

Investing equally in top five equity funds at the right time is the secret of making money in equity funds.

Being at the right place at the right time is important, that is Invest in the equity fund when the market is cooled off and set in to a rhythm. Keep your eyes open and play it watchfully in the bull market.

Keep updating your portfolio, always shuffle the portfolio. Always go for the best and say bye bye to the portfolios that are struggling. Kindly note there is no necessary to panic and exit a fund just because it trails the market by a couple of percentage points in a single year, it happens and this short term addles might not be much of a problem. However the majority of equity funds in our country tend to comfortably outpace the indices.

A 10-year study on the equity market, from any point in time, tells us that equities will always deliver returns higher than most investment class. So, if you’re a small retail investor having invested at the peak of the 2003-2008 Bull Run don’t panic. Your investments will fetch returns. Remember, even during the dotcom burst, there were many who said we will never see the Sensex at 6000 again. In less than a decade, the Sensex turned market pundits wrong and zoomed to 21000. Have faith.