Shriram Equity Mutual Fund

Investment Objective

The long-term goal of Shriram Equity Mutual Funds is to give investors a chance to increase their wealth. According to their mandate, which is defined in their plan information documents, these funds invest primarily in equities and securities related to equity in a particular proportion. After conducting a thorough study, the fund manager selects high-quality equities to guarantee that the returns of the portfolio continue to meet category benchmarks and expectations. The underlying stock-picking technique may be growth at fair prices, value, or growth. Increases in the prices of stocks over a specific investment horizon lead to capital appreciation. Additionally, it takes place when the dividends paid out by the fund are reinvested to buy more units of the plan. The investment objective is not, however, guaranteed to be realised by the Shriram Equity Mutual Fund.

Risks Involved in Shriram Equity Mutual Fund

Comparing equity products from Shriram Equity Mutual Fund to debt funds and balanced funds, equity funds have a fairly high market risk. The value of the fund may change whenever the price of the stock changes. Changes in the stock market's volume and price, interest rates, currency rates, governmental policies, tax regulations, and several different economic developments could all have an impact on stock values. The degree of portfolio diversity also affects how much risk there is. Market risk is higher for sector- or theme-based Shriram Equity mutual funds than it is for numerous different equity funds. Comparatively speaking, equity funds that are large-cap will be less risky than small-cap or equity funds. Before investing in a scheme, investors may take into account their personal risk tolerance.

Return Potential of Shriram Equity Mutual Fund

Returns are a byproduct of the investor's assumed risk. Compared to debt funds and balanced funds, returns from Shriram equity mutual funds are higher. The funds have a track record of producing returns that hover around 12% on average during periods longer than five years. However, Shriram Equity mutual funds do not guarantee guaranteed returns, and the performance of the products may change over time. A focused fund may have a larger return potential than a broad equities fund due to its increased risk. On the other hand, large-cap funds are renowned for offering consistent returns during all market cycles. One may think about diversifying the overall portfolio with a few mid- or small-cap funds to increase returns.

Who Should Invest in Shriram Equity Mutual Fund?

Investors looking for long-term capital appreciation over a period of five years or more can consider Shriram Equity Mutual Funds. Shriram equity mutual funds are intended for investors with a comparatively high risk tolerance because the fund value may increase or decrease depending on market conditions. Shriram Equity mutual funds are the best choice for long-term objectives, including funding a child's education, saving for retirement, and purchasing a home, due to their high return producing potential. You must maintain your investment during the designated investment duration, which is typically 10 or 12 years or even more, in order to realise the full potential of equity funds. This could also imply keeping only those surpluses in the accounts that are earmarked for long-term investments that you won't require anytime soon.

Things To Consider Before Investing in Shriram Equity Mutual Fund

Investors looking for long-term financial appreciation over a period of five years or more can consider Shriram Equity Mutual Fund. These funds are intended for investors with a comparatively higher risk tolerance because the fund value may increase or decrease depending on market conditions. Shriram Equity Mutual Funds are the best choice for achieving long-term objectives, including funding a child's education, saving for retirement, and purchasing a home, due to their high return generating potential. You must maintain your investment during the designated investment horizon, which is typically 10–12 years or even more, in order to realise the full potential of equity funds. This could also imply keeping only those surpluses in these accounts that are earmarked for long-term investments and that you won't need anytime soon.

Tax on Shriram Equity Mutual Fund

If your total long-term capital gain in Shriram Equity Mutual Fund surpasses Rs. 1 lakh in a fiscal year, the current tax rate is 10%. There are no cess or surcharges involved.