Mutual funds that are giving good returns

Among the various means of investments, equities are giving good returns. Statistics show this. Instead of investing in stock markets directly, it is better to approach mutual fund managers. In mutual funds, you have Equities (shares) and debt (bonds), together called Balanced Funds. They are various schemes among these, with slight difference between each. Find out which of these thousands of funds or schemes give good returns and invest in them through Simple Investment Plan (SIP).

It is not that easy to invest directly in stock markets. Many factors, like value, financially strong, with a good management come in to the picture. For ordinary investors, this is a difficult task. But for mutual funds managers this is easy, because they are experts in this. They will invest in a company that promises good returns, after doing extensive research and studying all factors, if necessary, by getting information from the company directly. Returns are not immediate. You will need to keep checking the company's functioning. You should also know when to sell the shares. Experts in the field can tackle these situations. That is why, those who want to invest in stock markets, should choose mutual funds, for more security.

Pure Equity Funds
Top Hybrid (Balanced) Funds
Tax Savings Fund (ELSS)
Debt Funds
Equity Funds
Large Cap Funds: Investing in companies that have high value in equity market. These are a choice for those who do not believe in high risk. Returns are moderate.

Mid, Small cap Funds: Investing in companies that are medium or low in market value. These are for those who can take high risk. Returns are also high.

Diversified Funds: Investing in large, mid and small cap companies that belong to different sectors. Risk factor is medium. Returns are also more than average.

ELSS Funds: These are tax saving funds. Investing in companies that give good returns in equities on a long term basis. Risk factor is low. Under Section 80 C, investing Rs. 1.5 lakh in these funds, invites exemption from tax.

Debt Funds
representational imageInvesting in bonds, government securities and debentures are called debt funds. These have low risk as well as low returns.

Balanced or Hybrid Funds
Investing in Equity and debt. The risk factor is reduced, yet returns are high.

Open-ended, Close-ended
Open-ended funds are those that are always available for buying and selling. Close-ended means that they are not available for buying or selling up to a certain period of time. They are sold only after the deadline is over.

Growth, Dividend, Dividend re-investment
One of these three options have to be selected in any fund. Growth means, returns on your investment which is in the form of Funds Units. Dividend means, a small portion of the returns on investments will be paid from time to time. Dividend re-investment means, the returns are not given away but reinvested by buying more units.
Mon, Oct 23, 2017, 01:23 PM
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