3 ways to enhance your equity portfolio in 2019

Each new year brings with it, new opportunities and prospects. It is left to us, to make the best of them. Talking specifically about investments, kudos to you for making yourself an equity-rich portfolio these past few years! Has last year’s market volatility worried you though? It is understandable but also the nature of equity to surprise us. If you study the trends of past 10-12 years you shall see that equity funds have seen lull periods and then bounced back with more gusto. So, let us see this as an opportunity rather than a challenge.

Assuming you have already invested in the large-cap equity funds and index funds, how about we try to do something different in 2019 and try out different equity funds? Of course, that would mean having a closer look at the market and devising a different strategy. No worries, we have done that for you. WealthApp brings to you, 3 Equity mutual funds that are going to expand your thinking horizons for good.

Equity Linked Savings Scheme


Are you still investing in PPF to save tax? What if we were to tell you, it’s possible to make better returns by investing in equity mutual funds while still saving tax? Welcome to ELSS world. ELSS mutual fund is equity-linked and doubles up as a tax saving mutual fund too. It solves two of your problems- an alternative to last-minute lumpsum tax saving investment + higher returns.

A PPF at best can give you returns around 8% whereas an ELSS mutual fund will give you returns upwards 15%. In addition, if you opt for a systematic investment plan under ELSS, it inculcates a discipline that might not exist with a PPF-like investment. Moreover, ELSS funds come with the least lock-in period i.e. 3 years, amongst the various tax saving instruments.

Sector Funds

These are the types of equity funds that invest in a particular industry only. Hence, the companies constituting the portfolio will belong to only that sector. Needless to say, the performance of these funds depends on the performance of that particular sector. Hence, all the more important that you choose a sector that looks up for this year.

Some examples of sector funds are Banking, Pharma, Natural resources, Technology etc. These funds are best suited for investors that can stomach higher risks since the investment is in one sector only thereby reducing diversification. The biggest advantage here is higher returns. ForEach new year brings with it, new opportunities and prospects. It is left to us, to make the best of them. Talking specifically about investments, kudos to you for making yourself an equity-rich portfolio these past few years! Has last year’s market volatility worried you though? It is understandable but also the nature of equity to surprise us. If you study the trends of past 10-12 years you shall see that equity funds have seen lull periods and then bounced back with more gusto. So, let us see this as an opportunity rather than a challenge.

Assuming you have already invested in the large-cap equity funds and index funds, how about we try to do something different in 2019 and try out different equity funds? Of course, that would mean having a closer look at the market and devising a different strategy. No worries, we have done that for you. WealthApp brings to you, 3 Equity mutual funds that are going to expand your thinking horizons for good.

Equity Linked Savings Scheme

example, Banking is a sector that always never goes out of season. And it is simpler to study the sectors that you might consider safe and the returns garnered from them. So, choose wisely and go all out!

Mid-Cap/Small-Cap Funds

Since the large caps are already taking care of your risk-hedging, let us indulge ourselves a little. As per SEBI guidelines, mid-cap companies are the ones that rank between 101-250 in terms of market capitalization. And small-cap are the companies that are ranked 250 and beyond. As you can probably guess, mid-cap companies are usually neither market leaders nor nascent start-ups. Whereas, small-cap companies might be the ones with smaller capitalizations but operating in niche sectors. Both with a heavy potential of becoming market leaders of tomorrow.

For the last 2 years, both mid and small cap companies have maintained very attractive valuations. Therefore, despite having been hit by the market turmoil, investors are still being advised to invest in these companies. These are best suited for investors with higher risk appetites and with a longer investment horizon. Mid-cap and small-cap funds are ideal for a 7-10-year investment horizon and have great potential if identified wisely.

Trying these out for the first time? Grant us a chance to assist you. WealthApp’s advisors will be happy to chalk out your revamped portfolio as per your requirements.

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