In an economy awash with liquidity, low interest rates are an obvious outcome. While borrowers celebrate, individuals depending on their savings for regular income – especially senior citizens - are the worst hit. As interest income falls and gold and real estate do not offer much, they are forced to consider investments in stocks. However, the volatile stock markets are no easy bite for risk-averse first-time investors. In such a dilemma equity savings fund appear to be a worthy investment option.
“Equity saving funds invest up to 35 percent money in stocks and can offer better returns than fixed income alternatives. As these schemes enjoy taxation of equity funds, they make investment sense with a minimum two year-time frame,” advises Vijai Mantri, chief mentor and co-founder of BuckFast Investment Advisory Services.
