Investors who invest in equities are required to set aside a certain amount each month for a specific time period. This allows you to build wealth over time. This goal can be achieved in a few ways.
Equity Mutual Funds
You can start a systematic investment plan (SIP), in a mutual funds scheme with as little as Rs 500. Instead of searching for stocks to invest in you can instead invest in an equity mutual funds that are managed by fund managers who have extensive research and analysis to build a portfolio.
ETFs or Index Funds
ETFs and index funds are a replication of the index they represent. To invest in ETFs, you will need to open both a trading and demat account.
Stock Investment Through SIP
Set up a stock SIP to invest regularly in stocks directly from the exchange. To invest in stock SIPs, investors must set up a mandate and then transfer the amount each month to their trading account.
Consulting Tax Adviser
For tax implications on equity investments, investors should evaluate their expense ratio and consult with their tax advisor.
To ensure long-term success, it is important to periodically review your portfolio in order to eliminate non-performers.