Equity top up investment

I have seen many people who are scared of investing in equity either directly or through mutual funds. This is mainly because of the fear of loosing capital or at times due to low understanding of equity as an investment instrument.

You can create a debt portfolio plus a equity top up in this case. This will give
100% protection to your capital amount invested.
Will help you increase your returns through equity.

How can you achieve this.

Alternative 1

You can choose to invest the amount you have in a Fixed Deposit and opt for a monthly or Quarterly interest payout option.
Alternatively you can also choose to invest in POMIS ( Post office monthly income scheme) which pays out monthly interest rate.
You can invest the interest so earned in an equity mutual fund through the SIP (Systematic Investment Planning) route.

Alternative 2

Suppose if you have Rs X with you now, you can invest such an amount in an instrument like F.D/ NSC for a period, say 5 years. You can invest amount X-Y in F.D/ NSC such that you will receive Rs. X on maturity. The remaining amount (i.e. Y ) can be invested in Stocks/ Equity/ Balanced fund based on your convenience.

Thus you can use equity as a top-up and sleep without the fear of loosing your capital.



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