Potential Equity Saving Schemes To Consider

Equity Savings Schemes allow investors to ensure monetary growth with planned ways that use the rise in index points to return high-value deals. As an independent investor, however, we need to understand that it is our money at risk so while choosing an equity scheme ensure what is offered in return of a volatile market.

Equity Savings Schemes are methodologies for moderate to high risk investors who enterprise their savings for enhanced returns by staking money in diversified shares. These cater to a long term investment idea and can be managed actively or passively. In this article we discuss on four competent fund schemes.

Value Discovery Fund

Value Discovery Fund is an Open-ended Diversified Equity Fund type that aims towards investing funds in discounted stocks to their intrinsic value (the intrinsic value or the fundamental value is the cost identified after a fundamental analysis on the stock without including its market value). A process called ‘Discovery’ is used here which helps identify companies that are fundamentally strong and are available on a ‘bargain’. This scheme uses ‘Bottoms-Up’ strategy (a method used by investors to pick stocks based on individual aspects of a company and its related performances) to identify and pick up stocks based on a parametric evaluation of Price/Earning, Price/Book Value and Dividend Yield.

Benefits:

  • Long-standing wealth accumulation

  • Captivatingly, what aids the investor here on returns is the fact that the potential value of invested shares is not yet unlocked which ensures superior returns

Risk Involved: Moderately high.

Dynamic Plan

Dynamic Plan is again based on Open-ended Diversified Fund scheme whose aim is to make the most of the constantly-changing temperament of markets. This scheme allows the fund manger to take aggressive asset calls during extensive market fluctuations. As a defensive strategy however, it take to debt investments and money market instruments during instances of market overvaluation.

Benefits:

  • Long-standing wealth accumulation

  • Allows an equity outlay with defensive strategies making investments better secure

Risk Involved: Moderately high

Focused Bluechip Equity

A third example of Open-ended equity scheme is Focused Bluechip Equity which is a more flexible approach that involves investments in company shares of large cap domains. These companies have proven their growth potential with first-rate track records. The fund manager has the liberty to invest in stocks across sectors and pick high-intensity shares that hold the potential of a prominent return generation. This scheme is implemented with the ‘bottom-up’ policy of selecting stocks. This is a more dynamic approach that does not limit selecting shares based on a particular domain which creates more and better options for the fund manager.

Benefits:

  • Long-standing wealth accumulation

  • Allows ‘buy and hold’ endowing investors with explicit high-value returns regardless of market fluctuations

  • Large-cap companies persistently prove their capacity of a growing record which accelerates chances of a high return values

Risk Involved: Moderately high

Infrastructure Funds

Infrastructure Funds are an open-ended equity scheme which as the name suggests aims at capturing companies with enormous growth potential and a long-term return promise within the core infrastructure sectors and their allied segments. This combines top-down and bottom-up market strategy analysis which helps understand both the broader aspect of the market narrowed down to analyzing the individual company performance. This refined strategy helps accumulating best returns on investments owing to the macro research of ‘classify and single out’ potential stocks.

Benefits:

  • Long-standing wealth accumulation

  • Lower concentration risks since it is an example of thematic investing

Risk Involved: High