Invest Your Money Into Top 100 Mutual Fund

Invest Your Money Into Top 100 Mutual Fund 5.00/5 (100.00%) 8 votes

For a small investor looking for an investment choice that combines safety, liquidity and good returns, mutual funds are the answer. Mutual FundAdded to the above factors is the ease of getting in or moving out. Being well regulated under SEC guidelines, the fund manager’s activities are transparent and with high standards of accountability.

Mutual funds pool in resources from subscribers and invest in specific instruments. They invest in equity stock, bonds or government securities. Equity funds earn high returns in terms of both distributed dividend and capital appreciation. However, they run the risk of capital erosion in case the performance of the underlying stock falls below par. Debt funds earn stable income and assure safety of principal. But, they are not profitable in times of inflation. Hybrid funds provide average high returns because of a mix of debt and equity investments in the portfolio.

When you choose to invest in mutual funds, it pays to have the following points in mind:

  • Determine your investment horizon. Do you want to be in the market for short-term or you have a long-term plan?
  • How much can you commit regularly?
  • What are your financial needs at the end of the investment horizon? Do you have a child entering college or a mortgage reaching maturity?
  • What are your financial payouts at specific points on the investment horizon? Do you have alternative financial plans in case of emergencies?

Mutual Fund 2These are good questions to ask before jumping on to the mutual fund bandwagon. These are pertinent too, as they would greatly influence your choice of mutual funds. Write down the answers to each of the above.

Now that you have your financial objectives well articulated in money terms, you should scout for suitable mutual fund schemes. In case you are a long-term investor, look out for equity schemes that invest in under-valued stock or emerging markets and sectors. In case you have a fixed liability that would crystallize at the end of a specific number of years, it would be better to invest in debt funds. Your returns are higher post-tax than interest on a simple bank deposit and you can redeem the units whenever the need arises.

There are several financial dailies and websites that publish mutual fund returns on a weekly or daily basis. They also publish returns in percentage terms on a weekly, 3-month, 6-month, year-to-date and 5-year time period. Forbes, CNN, MSNBC and S&P are some of the popular sources of these details. They also rank the mutual funds and give out the list of Top 100 mutual funds. Choose one that suits your requirements and in case of doubt, get professional advice.