COMPARE MUTUAL FUNDS TO SELECT THE BEST MUTUAL FUND SCHEME

If you are looking to invest your valuable money but you do not know how to get started or if you do not have enough time for investment, then mutual funds are ideal investment choices for you.

Mutual funds basically refer to the funds that have been invested by a number of investors who share common investment agendas. This fund is then handled and managed by a professional fund manager or a trust. The fund manager or the trust look out for different options to invest this pooled fund in equities, bonds or any other securities and money market instruments.

Every investor has its own share of holdings of the funds called the units. The profit gained or the loss incurred is shared equally amongst all the investors after the subtraction of an amount that is calculated according to the scheme’s Net Asset Value (NAV).

The benefit of mutual funds is that one can have the access to buy from a large range of securities, equities and other bonds, which is unlikely with a small amount of investment.

It is important to know that all mutual funds are enlisted with the regulator for the security market in India – SEBI (Securities and Exchange Board of India).

There are many mutual fund schemes to choose from, some of which can be listed as below:

  • Schemes based on Maturity Period
  • Schemes with an objective
  • Growth/ Equity-Based Schemes
  • Income/ Debt Based Schemes
  • Balanced Fund
  • Liquid Fund
  • Gilt Fund
  • Index Funds

The number of schemes to choose from makes it confusing for the investor to pick up the one mutual fund that gives maximum profits based on the provisions of his/her investment. Thus, proper research and comparison amongst different mutual fund schemes before investing money becomes necessary. The factors to compare mutual funds are the returns, the risk statistics, the NAV and fees, and details. Many reputed mutual fund companies strive to provide the best returns on our mutual fund investments with a direct-to-investor mutual fund.

Thus, if you are looking forward to investing your asset in mutual funds, it is better to compare mutual fund schemes and opt for a scheme that is well-suited to you and the one that promises to give you maximized returns on your investment.

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