Index Fund Corner
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| Scheme Name | 1-Year Return | Invest Now | Fund Category | Expense Ratio |
|---|---|---|---|---|
| Axis Nifty 50 Index Fund | +32.80% | Invest Now | Equity: Large Cap | 0.12% |
| Axis Nifty 100 Index Fund | +38.59% | Invest Now | Equity: Large Cap | 0.21% |
| Axis Nifty Next 50 Index Fund | +71.83% | Invest Now | Equity: Large Cap | 0.25% |
| Axis Nifty 500 Index Fund | — | Invest Now | Equity: Flexi Cap | 0.10% |
| Axis Nifty Midcap 50 Index Fund | +46.03% | Invest Now | Equity: Mid Cap | 0.28% |
What are equity investments?
An equity investment is the money invested through the purchase of stock of a company. These shares are usually exchanged on the stock exchange. It can increase the value of the principal amount invested, which comes in the form of capital gains and dividends. It offers a diversified investment option for a minimum initial investment amount.
Investing in equities can be an excellent fiscal solution if you are focused on long-term growth and can tolerate a certain level of risk. It offers liquidity as equities are traded on stock markets where you can easily purchase or sell stock as per your need. It also allows you to invest in different companies across multiple sectors that can mitigate the overall risk of your portfolio.
Although it offers significant advantages, equity investments are not without risks, which are impacted by market fluctuations, economic downturns, and company-specific issues.
What are gold investments?
Gold has been one of the popular investments in the Indian market for years. It is one of the few tangible investments and gives a sense of safety among investors. Gold can be easily purchased when compared to other tangible assets such as real estate. It is also a perfect option because it is easy to sell and can be carried with you anywhere you go.
Unlike stocks, real estate, and other investments, it requires no specialised skills. Gold prices can be volatile, but they have held their worth throughout time. In addition to physical gold, you can also make investments in the Sovereign Gold Bond (SGB) scheme, Gold
ETFs (Exchange Traded Funds), digital gold and others.
But it gives absolutely nothing as an asset until it is sold; also, it is not recommended for short-term investors. As gold prices are highly volatile, it is affected by many factors like market sentiment, economic indicators, and geopolitical events.
What is the Public Provident Fund (PPF)?
Public Provident Fund is a government-backed savings scheme that offers tax benefits and attractive returns on investments. The scheme offers a tax benefit under Section 80C of the Income Tax Act.
A minimum annual deposit of Rs 500 and a maximum of Rs 1.5 lakh are required for the scheme. The Public Provident Fund has a minimum tenure of 15 years, which is extendable in blocks of 5 years. The PPF account can be opened by any Indian citizen, including minors, where the account is managed by their parents.
It comes with a fixed interest rate and provides a sense of stability and predictability. Additionally, investors can also enjoy the benefits of partial withdrawals from the 7th year onwards, while loans can be availed after the third year. With a 15-year lock-in period, it is not a suitable option for persons who require more accessible funds.
It offers a fixed interest rate but can be a disadvantage when market interest rates are higher. Non-resident Indians (NRIs) cannot open a PPF account, and if they become an NRI during the PPF tenure, it cannot be extended beyond the original maturity period.
It is advised to analyse your personal financial goals, cash flow needs, time horizon, risk appetite and target corpus before investing. Invest in equity if you have a high-risk tolerance and are looking for the potential for significant long-term returns.
If you are prioritizing stability and guaranteed returns for long-term financial goals, PPF can be the best option. Investing in gold is a great option when you wish to diversify your portfolio, as a plummeting stock market does not usually result in a decline in gold prices.
