Mutual fund investments are recommended by investment analysts to both-aggressive as well as conservative investors. To give a direct and short answer to the question, are mutual funds are a good investment? Yes, mutual funds have been a safe investment option than direct equity investments, right from their origin several years ago. However, apart from what your investment adviser has to say, you would be eager to know why are mutual funds a good investment before making actual investments. Let us discuss below the features of mutual funds that make them ideal for investment.
Factors that Make Mutual Funds a Good Investment
Safety
As mentioned above, mutual funds are a good investment option because of their safety. The chances of loosing your money are minimized to a great extent with the help of mutual funds. So, the process of wealth creation can be completed with a good speed, and in a successful way.
Professionally Managed
Mutual funds are professionally managed investments. All mutual fund companies have professional fund managers who are highly qualified finance professionals. With innovative and advanced strategies and deep knowledge of the capital markets, fund managers are able to meet investor expectations and even surpass them.
Consistent Returns
If you are wondering are mutual funds a good investment, then you should definitely take into consideration their consistency in giving positive returns to investors. Proper risk management from fund managers ensures that mutual fund investors do not make loses like direct equity investors. The top rated mutual funds can give you a return of anything between 15-30% per year depending on market conditions. Do mutual funds pay dividends? This is another commonly asked question. As per the available information, most reputed funds pay attractive dividends, thus increasing wealth of their clients.
Flexibility
The flexibility offered by mutual funds makes them one of the finest asset class. Mutual funds of different types are available for wealthy, as well as small investors. You can choose from the various large-cap, mid-cap as well as small cap funds as per your choice and preference. The mutual funds give you a chance to invest as per your risk taking ability and term of investment. You can sign up with a mutual fund company and make monthly payments which is the best payment mode for salaried people.
No Need to Track Your Investments
In the case of mutual funds, you need not track your investments on a daily basis like direct stock investments. Your company manages your investments very well and hence you can save a lot of time and energy. Also, you can get permanent relief from the big tension of equity markets going down.
While discussing whether mutual funds are a good investment, we need to compare them with stock investments. Many times, stocks can give higher return than funds if the investor has a thorough knowledge of what he is doing in the markets. A good stock investor can earn around 30-60% return on his investments in a year depending on his level of expertise. If you wish to know which mutual funds to invest in 2011, then refer to the list given below:
* Vanguard Wellington
* Dreyfus International Bond
* Templeton Global Bond advantage
* American Funds Capital Income Builder
* T. Rowe Price Emerging Markets
* Primecap Odyssey Growth
* Fidelity Contrafund
* FPA Crescent
* Oakmark International
These mutual funds can give exceedingly good returns in the long term. So, investors are advised to increase their investment time horizon to get the maximum benefits. By now, you must have understood why are mutual funds a good investment. So, hoping that you will make the most of this investment opportunity, I would like to sign off here. All the best!
Factors that Make Mutual Funds a Good Investment
Safety
As mentioned above, mutual funds are a good investment option because of their safety. The chances of loosing your money are minimized to a great extent with the help of mutual funds. So, the process of wealth creation can be completed with a good speed, and in a successful way.
Professionally Managed
Mutual funds are professionally managed investments. All mutual fund companies have professional fund managers who are highly qualified finance professionals. With innovative and advanced strategies and deep knowledge of the capital markets, fund managers are able to meet investor expectations and even surpass them.
Consistent Returns
If you are wondering are mutual funds a good investment, then you should definitely take into consideration their consistency in giving positive returns to investors. Proper risk management from fund managers ensures that mutual fund investors do not make loses like direct equity investors. The top rated mutual funds can give you a return of anything between 15-30% per year depending on market conditions. Do mutual funds pay dividends? This is another commonly asked question. As per the available information, most reputed funds pay attractive dividends, thus increasing wealth of their clients.
Flexibility
The flexibility offered by mutual funds makes them one of the finest asset class. Mutual funds of different types are available for wealthy, as well as small investors. You can choose from the various large-cap, mid-cap as well as small cap funds as per your choice and preference. The mutual funds give you a chance to invest as per your risk taking ability and term of investment. You can sign up with a mutual fund company and make monthly payments which is the best payment mode for salaried people.
No Need to Track Your Investments
In the case of mutual funds, you need not track your investments on a daily basis like direct stock investments. Your company manages your investments very well and hence you can save a lot of time and energy. Also, you can get permanent relief from the big tension of equity markets going down.
While discussing whether mutual funds are a good investment, we need to compare them with stock investments. Many times, stocks can give higher return than funds if the investor has a thorough knowledge of what he is doing in the markets. A good stock investor can earn around 30-60% return on his investments in a year depending on his level of expertise. If you wish to know which mutual funds to invest in 2011, then refer to the list given below:
* Vanguard Wellington
* Dreyfus International Bond
* Templeton Global Bond advantage
* American Funds Capital Income Builder
* T. Rowe Price Emerging Markets
* Primecap Odyssey Growth
* Fidelity Contrafund
* FPA Crescent
* Oakmark International
These mutual funds can give exceedingly good returns in the long term. So, investors are advised to increase their investment time horizon to get the maximum benefits. By now, you must have understood why are mutual funds a good investment. So, hoping that you will make the most of this investment opportunity, I would like to sign off here. All the best!
No comments:
Post a Comment