Motilal Oswal Asset Management Company Ltd. (MOAMC) is a public limited company incorporated under the Companies Act, 1956 on November 14, 2008, having its Registered Office at 10th Floor, Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai - 400025.
Motilal Oswal Asset Management Company Ltd. has been appointed as the Investment Manager to Motilal Oswal Mutual Fund by the Trustee vide Investment Management Agreement (IMA) dated May 21, 2009, executed between Motilal Oswal Trustee Company Ltd. and Motilal Oswal Asset Management Company Ltd.

5 key advantages of equity mutual fund schemes

You might have come across the people who want to invest money in equities but hesitate due to lack of knowledge or misconceptions. It is true that investors often lack adequate knowledge, expertise and guidance while investing in equities. Moreover, the amount they wish to invest is comparatively smaller. Equity mutual fund schemes are good options for such individuals. Equity mutual fund schemes are managed by qualified and experienced fund managers from Asset Management Companies (AMCs) who specialize in equity investments. Investors can identify the best suitable schemes to invest according to their investment objectives. In case of equity mutual fund schemes, fund managers deploy money in various categories of market capitalization of stocks, namely small, mid, large and sometimes in a combination which is typically called as multicap. Let’s learn the 5 key advantages of equity mutual fund schemes.

Professional management

Equity Mutual Fund Schemes

Imagine you want to build a house. Even though you pay for everything, you rely on the expertise of professional architect, builder and technicians to build your house to the perfection. When it comes to money, wouldn’t expertise matter for building wealth? AMCs set investment objectives for schemes and appoint experienced and expert professionals to invest your money in equity. Fund managers spend quality time learning about the past and researching about the future performance of companies they invest your money in.

Portfolio Diversification

Advantages of Equity Mutual Fund Schemes

You get an exposure to various stocks when you are invested in equity mutual fund schemes. Investments as small as Rs. 500/- in mutual fund scheme allow you to make a diversified portfolio. This is simply, putting eggs in different baskets. Portfolio diversification helps to reduce risk which means you are less likely to lose money on your investments. Compared to direct investments in stocks, equity mutual fund schemes are affordable yet diversified models of investing.


Equity mutual fund schemes are liquid. They offer you an opportunity to redeem your investments at any time (Except for Equity Linked Saving Schemes-‘ELSS’ which has a lock in period of 3 years). That means you can redeem all your investments in the time of need or at a Net Asset Value (NAV) higher than NAV at the time of purchase. You can even invest more in equity mutual fund schemes during the market fall to buy units at lower NAV. Such liberty of investing and redeeming gives you better control over your investments.

Systematic/ Regular investments

Equity mutual fund schemes avail you a facility to invest small sums at regular intervals through systematic investment plans (SIP). SIP makes it simpler for the beginners to invest in equity mutual fund schemes. These small sums that you invest regularly are invested to buy stocks. This also develops a regular habit of investing which is useful in long term wealth creation.

Tax benefits

If the investment period in equity mutual funds scheme is more than one year the capital gain is exempted from tax liabilities. Government of India also provides tax rebate for equity linked saving schemes (ELSS) u/s 80C of Income Tax Act 1961. You can invest into ELSS and deduct upto Rs. 1,50,000/- from your taxable income to effectively reduce your tax liability.

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Disclaimer: Investors are advised to consult their tax advisor in view of individual nature of tax benefits. Further, tax deduction(s) available u/s 80C of the Income Tax Act, 1961 is subject to conditions specified therein. Investors are requested to note that fiscal laws may change from time to time and there can be no guarantee that the current tax position may continue in the future.

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Disclaimer:The information herein alone is not sufficient and should not be used for the development or implementation of an investment strategy and shall not constitute as an investment advice. MOAMC shall not be liable for any direct or indirect loss arising from the use of any information contained in this document. Readers shall be fully responsible for any decision taken on the basis of this document. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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