Mutual Funds to Watch in 2011

What is the merit of mutual funds, that a considerable number of people have started opting for it? The basic and the most important advantage of a mutual fund is, professional management, a feature that most of the other investments such as direct stock investments do not have. Mutual funds are manged by a team of experts who are headed by a fund manager. The following paragraph explains the concepts revolving around mutual funds and also lists out some of the best mutual funds for 2011 that are currently in operation and are expected to show a fascinating performance through out the year.

What are Mutual Funds?

A mutual fund is principally a collective investment scheme, that is it is a pool of funds invested by several investors. The invested portion of the fund is known as a 'share' and periodic return or reward of the fund is simple referred to as a 'return'. Fund managers usually invest the pools and funds into, reliable and underwritten sources which offer really good returns. The profits and returns which are earned by the mutual fund are then distributed among its share owners or investors. This is the principle working of the common mutual funds.

Now, there are some differences in different mutual funds such as the rate of returns that are offered by the company, or the structure of investments and repayment of returns. In some cases, the returns of the mutual fund are based upon specified factors such as an index developed by the mutual fund company or indexes of stock exchanges. Alternatively, it might also depend upon different values such as cash values and the net asset value of the fund. All these features are collectively, referred to as the portfolio of the fund. A portfolio may be singular, that is, it may depict your investments only, or it can also be of the entire pool of funds that been used as a collective investment scheme.

Features of a Mutual Fund that Make it a Good One

The next question that is bound to pop up in our minds is, what are the features which make a mutual fund a good one. Here are some leads:

    * The first feature that should be take into consideration is the company and the fund manager who would be managing the fund. The better the reputation the better is the fund. A professional management means that incidences of risky investment would be drastically curbed down.
    * The second point that can be taken into consideration is the fund's portfolio, that is the places and destinations in which the mutual fund is going to be invested into. These destinations include stock exchanges, bonds, money markets, preferential capital, etc. The sectors such as banking, automobile, steel, crude oil and others also substantially influence the returns of the fund. The portfolio should be aggressive but safe.
    * The third most crucial point that needs to be considered is the mutual fund's investment and returns structure. Basically the company providing the mutual fund would give you the structure and also a projection. The returns of the mutual funds are usually made up of two parts, namely, the assured or guaranteed returns and the ones that cannot be guaranteed in some cases, some funds do not have guaranteed returns. Calculate the rate of returns and judge whether the mutual fund sounds to be a suitable investment. Note calculate the return over investment in percentage (%) as it gives a better point of comparison.

Mutual Funds to Watch in 2011

The following is a list of some of the really good mutual funds which have very promising features, great return over investments, excellent projections.

    * Vanguard Wellington
    * Fidelity Contrafund
    * Dreyfus International Bond
    * Fidelity Select Materials
    * Janus Overseas T Fund
    * Primecap Odyssey Growth
    * FPA Crescent
    * American Funds Mutual Fund
    * Vanguard Windsor II Fund
    * Jensen Portfolio
    * AMCAP Fund

Apart from these high performing funds, you may also explore other types of funds on the basis of the aforementioned points. All the needed details are usually disclosed by investment company. I hope that the elaboration on mutual funds to watch in 2011 is resourceful.

Are Mutual Funds Safe?

Mutual fund investments are recommended by several investment analysts for building a solid investment portfolio. Though mutual funds originated long back, they are still the most preferred forms of investments due to many reasons. However, as we know, there are some risks associated with every investment, and it is taken for granted that the investor is completely aware of them before investing. The same holds true for the mutual fund investments also. While signing up with any mutual fund company, you are given a document which has disclaimer clauses and a statement like-"Mutual fund investments are subject to market risks. So, please read the prospectus carefully before investing". At this point, a common investor gets confused as of where his money would be safe. However, my point is that one should choose an option which is less risky as compared to the other options.

Types of Mutual Funds

In a mutual fund, we invest money on a monthly basis in our selected scheme. The following are the kinds of funds which we get to select from:

    * Large cap funds
    * Mid cap funds
    * Small cap funds
    * Diversified funds
    * Sector specific funds

However, in spite of the variety available, the question are mutual funds safer than stocks arises, because mutual fund companies will ultimately be investing the money into select stocks which they decide after a good research. Many people fear that in times of stock market crash, their mutual fund asset value too will go down. Though this is true, you also tend to gain when the market rises and this can help you recover from past losses. Funds are invested by fund managers who are responsible for professionally managing mutual funds. As they say, knowledge is the king in the stock markets and hence profound knowledge of capital markets can be a way of wealth creation.

When a retail investor buys stocks, he might not be aware of the risks associated with it, as he is not in touch with the happenings in the markets on a daily basis. However, finance professionals who manage mutual funds have industry knowledge and exposure which helps them to make right 'buy' and 'sell' calls to protect and increase investor wealth. Thus, the answer to the question are mutual funds safe is a YES in most cases.

Exchange traded funds (ETF's) are nothing but mutual funds that are traded on the stock exchange. ETF's have also emerged as good investment options over the years. However, if you wish to know whether mutual funds are safer than ETF's, then considering the track record of the mutual fund company, its history of returns and ability of fund managers is important. Though most funds are well managed, some poorly managed funds do exist in the market, and they can deteriorate your wealth. So, you should track the performance of a fund for the past few years and go for the one which shows maximum consistency and pays good dividends. Another point, which I would like to discuss at this point, is that you need to buy mutual funds with a long term investment outlook. If you close your fund earlier, then you might not get the desired returns.

Top Mutual Funds

After knowing that mutual funds are relatively safe, you might be wondering which mutual funds to invest in 2011. So, here is a list of top rated mutual funds for 2011:

    * Primecap Odyssey Growth
    * T. Rowe Price Emerging Markets
    * FPA Crescent
    * Fidelity Contrafund
    * Oakmark International
    * Vanguard Wellington

So we can conclude that mutual funds are the relatively safer option in terms of financial investments. One must definitely consider this form of investment after a careful research. A mutual fund scheme of fifteen to twenty years would be the ideal for youngsters who have just started earning. So, hoping that you will use the above information well, I would like to sign off here. Good luck!

Are Mutual Funds a Good Investment?

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!

Best Mutual Funds for Young Investors

The concept of mutual funds is interesting as well as easy to understand. Mutual funds are a form of systematic investment that can generate huge returns in the long term. However, choosing mutual fund largely depends on the following factors:

    * Age of the investor
    * Risk taking ability of the investor
    * Time span for investment
    * Amount to be invested

At a young age, a person has relatively less responsibilities, and the savings ratio is high. If these savings are invested in certain cheap mutual funds for young investors, they would be able to get decent returns after five to ten years which can be utilized to make bigger purchases. Youngsters should not keep a huge idle cash with them, as this can affect their wealth creation targets negatively. Given below are some of the best mutual funds for young investors.

Mid Cap Funds
Though most of the top 10 mutual funds for young investors are large cap funds, some quality mid-cap funds can be advantageous for young investors. These funds mainly invest in mid cap stocks which are considered to be pretty volatile. However, with proper fund management and investment in established companies, risk can be considerably reduced. Returns from mid cap funds can be as high as 25% in a good market.

Sector Funds
Sector funds can be the best investments for young investors. The sector funds concentrate on particular sector of the economy. While one sector fund will concentrate on banking and financial services, the other can have stocks from the construction and infrastructure sector. Because of this, investors can benefit from the 8 advantage of high growth in this sectors and protect their capital from losing in other non performing sectors.

Diversified Funds
Diversified funds can be amongst the best mutual funds for 2011 for young investors. These funds average out the risk by having good stocks from all sectors of the economy. So, in a poorly performing market, a diversified mutual fund can protect your wealth from reducing greatly.

About Small Cap Funds
As the name suggests, the small cap funds are known to have shares of small companies in their portfolio. Since these stocks can be beaten down heavily in a bear market, investors with low risk taking ability should avoid them completely. For the adventurous investors, such funds can be an opportunity to pocket unexpected gains.

Ideal Funds for Young Investors
Here is a list of the best mutual funds for young investors:

    * American Funds - Capital Income Builder
    * Templeton Global Bond Adv
    * Vanguard Wellington
    * Vanguard STAR
    * Pax World Balanced
    * MainStay ICAP Select Equity I
    * T. Rowe Price Spectrum Growth
    * Fidelity Contrafund

Mutual Fund Tips for Young Investors
Here are some of the important mutual fund tips for young investors:

    * Before you choose a fund, study its offerings carefully and check whether you would be able to meet your goals with them
    * Check the reputation of the mutual fund company before you sign up
    * Mutual fund ratings can help you select a good fund without falling prey to poorly managed funds
    * Have long time term plans to get maximum benefits of mutual funds
    * Take help from an experienced financial planner to choose the correct fund for yourself
    * Avoid taking too many funds and concentrate on the top few funds for assured returns

So, this content on best mutual funds for young investors will definitely help you plan your investments. This is a much more safer route for investors than direct stock investments and so, make the most of this opportunity. Good luck!

Mutual Fund Manager Salary

Wall Street has seen some turbulent times recently but the economy is showing signs of stabilization and recovery. In the current economic scenario mutual funds are emerging as good investment options, especially for those who aren't familiar with the inner workings of the stock markets. Mutual funds are professionally managed by people who have experience and expert understanding of the financial market. Surveys conducted by investment companies indicate that more than 90 million people in America prefer mutual funds as an investment option.

Mutual funds are collective investments of a group of people in short term market instruments, stocks, bonds, and securities. These are professionally managed and charge the investors a small fee for the services rendered. Brokerage firms and Investment Companies hire mutual fund managers to look after specific investments. Their job is to do extensive market research and pick the best investment options as mutual funds are subject to market risks. They play an integral role in making money for the organization and are well compensated for their services.

Average Mutual Fund Manager Salary

Mutual fund manager salaries have been a part of wall street folklore for a long time now, however, the recent economic downturn has put a major dent in their salary figures. The numbers aren't as good as they used to be, but mutual fund managers still make a good living. They are hired by asset management companies to make prudent investments for the companies clients. A mutual fund manager can expect to earn six figure salaries, but the exact number depends on several factors. The employer type plays a role in the mutual fund manager salary, here are a few statistics.

Mutual Fund Manager Job Description

The value of mutual funds are influenced by the prevailing economic and political situation, hence a mutual fund manager has to keep track of these things. The manager spends a lot of time researching the domestic and international stock markets for investment opportunities. They also keep a track of the investments they have made with the help of their team of stock brokers and financial analysts. A mutual fund manager also suggests when to buy certain stocks and when to sell them to maximize profits and limit any losses.

Sometimes they will meet the clients to apprise them of the current situation and discuss investment opportunities. Generating reports regarding the profit, loss, and investment opportunities is also a big part of their work profile. Interpreting large volumes of statistical data with the help of computers and finance related software also takes up most of their office time. Mutual fund manager job description also involves meeting with the upper management of the organization to give presentation and progress reports.

Mutual fund managers also get good bonuses for managing the funds and picking profitable investment options. According to analysts this is the right time for being a mutual fund manager as the US and world economies are showing signs of revival.

Best Mutual Funds in India for 2011

The concept of mutual funds in India is rather young and there are still several people, who are quite hesitant about this investment options. As the financial year 2011-12, has just set off several of you may be looking out for good investment option. In the following paragraphs, an explanation about mutual funds, their classification and a very well performing fund of each category have also been included.

What is a Mutual Fund?

Well let me put the concept before you in a quick rush…

    * People with free cash lying around can invest their money into any mutual fund which is operated by financial institutions, companies and banks, and are managed by very well qualified fund mangers, who tend to have a high caliber for investment. There are some excellent strategies based upon which the funds are invested in. The strategy and its execution is referred to as the portfolio.
    * The investors put in money into a pool and are allocated 'units' or 'shares' on the basis of how much they have put into the pool. A Net Asset Value (NAV) of the total fund can be computed and the proportionate NAV of each contributor (i.e. units allocated multiplied by the NAV) is used to pay off the returns. Thus more the NAV the better would be your returns.
    * The money thus pooled in are invested by the fund manager and company into the decided portfolio. The investments are in several cases, brought and sold to realize profits. This trading is carried out by the fund manger and his team. Common investment destinations include, shares, stock, bonds, debentures and in some cases, money market instruments and also securities in off shore high yield accounts.
    * The fund companies who provide this facility, charge some loads or commissions such as entry load, exit load, deferred load, sales charge, etc. This usually amounts to about 1-5% of the total invested about.

Well moving on to the best mutual funds for 2011 in India. Please note that there is almost no way to deem or arithmetically term any mutual fund as the 'best', there are several which are really good ones. In the following paragraphs, some of my personal favorites, the ones recommended by industry experts and also ones that have shown an excellent performance have been included.

Best Mutual Funds for 2011 in India

In the following paragraphs a very well performing fund of each of the 4 classes and categories have been described. Apart from that, a brief list of some of upcoming mutual funds has also been included.

1. Equity Funds
As the name indicates, equity funds have a maximum holdings in equities of the companies. Some of the common constituents of equity funds include mid-cap funds which go into mid-cap companies, diversified equity funds which go into diversified industries and sector specific funds which go into the funds of specific sectors. The HDFC Equity Fund (G) is an acclaimed fund led by HDFC. It is an open ended growth fund. This fund's portfolio invests into sectors that include, banking and finance, oil and gas, technology, metals and mining and pharmaceuticals, with some other funds being used in miscellaneous sectors. The fund invests into equity, money markets, debts, other mutual funds and cash and call. The gives a return of about 19.2% with a minimum investment of Rs.5,000. Some of the other common funds in this category include:

    * ICICI Pru Discovery Fund (G)
    * Birla SL Dividend Yield (G)
    * DSP BlackRock Micro Cap Fund (G)

2. ELSS Fund
An ELSS or rather an Equity Linked Saving Scheme fund is basically fund which has a lock in period of 3 years and an investment of less than Rs. 100,000, in this fund qualifies for a tax exemption. Fidelity Tax Advantage Fund is one of the best ELSS fund which aims at investing in growth destinations. With a minimum investment of Rs. 500 it provides an annual return of about 17.1%. This fund chiefly invests into sectors such as media, pharmaceuticals, oil and gas, technology, banking and finance. The usual investment channels are used, which include equity, mutual funds, money markets, cash and class, etc. Some of the other common funds in this class consist of:

    * Canara Robeco Equity Taxsaver (G)
    * ICICI Pru Tax Plan (G)
    * Franklin India TaxShield (G)

3. Balanced Funds
Balanced funds are the ones which used both, equity (stock) and debt funds (fixed income securities or I-owe-you instruments). Such funds chiefly profit from both the types of investments, namely, equity purchase and debt and lending oriented. HDFC Children's Gift (Inv) is a great high yielding fund with a Rs. 5,000 minimum investment, the fund provides a 23.3% returns annually. The common sectors in which this funds invests into include, automotive, engineering, consumer durables, pharmaceuticals and banking and finance. Some of the other funds in this category which have been performing really well consists of:

    * UTI-Children's Career Balanced Plan
    * HDFC Balanced Fund (G)
    * Birla Sun Life '95 Fund (G)

4. Monthly Income Plan (MIP)
As the name suggests the MIP provides a monthly specified income to the investors who have purchased units in the fund. HDFC MIP - LTP, is an open ended growth fund which at a minimum investment of Rs. 5,000 yields a great annual return of 8.7%. This fund invests into banking, technology, oil and gas, metals and mining. As usual the channels of investments include cash and call, debt instruments, equity, etc. Some of the other popular funds from this class of mutual funds include:

    * Birla Sun Life MIP II
    * Canara Robeco MIP (G)
    * Reliance Monthly Income Plan (G)

Three companies, namely, ING Optimix Financial Planning Fund (OFPF), ICICI and HDFC would be launching some really good funds which include ING OFPF - Aggressive Plan (D), ING OFPF - Cautious Plan (D), ING OFPF - Prudent Plan (D), ING OFPF - Conservative Plan (D), ICICI Pru MIP 5 (G) and HSBC Brazil Fund (G). In aforementioned paragraphs, please note that the actual rate of return, where ever it was mentioned, will be paid by the companies in accordance with their planned schedule. The annual rate of return has been included so as to give you a good idea. I hope that the elaboration on the best mutual funds for 2011 in India is resourceful.

How to Compare Mutual Fund Performance

Mutual funds have always been popular among all kinds of investors - small and wealthy, because of the relatively low risk associated with them as compared to direct stock investments. If you look at the mutual fund industry today, you will find that there are several companies in the market who are trying to attract customers. In this situation, a common investor might get totally confused with regards to where to invest his money. Investing money in the wrong mutual fund can be disastrous and can lead to heavy losses. So, it becomes extremely essential to distinguish between the best mutual fund performance and poor mutual fund performance. Given below are the parameters which you need to consider for knowing how to compare mutual fund performance.

Mutual Fund Performance Comparison

Historical Returns
All those who wish to know how to compare mutual fund performance, should understand that studying the historical returns of the mutual funds with the help of mutual fund performance charts, is very essential. Studying the historic returns of mutual funds is possible by checking the percentage return given by the fund, right from its inception to date. For making sure that the fund is a consistent performer, you can also take historical data of the past one year, two years, three years, or even the last five years. When you keep charts of two distinct mutual funds against each other, you will immediately realize which one has generated more wealth for its investors. Measuring absolute returns, which give you the gains of a fund in a particular period of time, is a good technique for selecting the best mutual funds for 2011, and beyond.

Benchmark Returns
Considering the benchmark returns is also a good way of studying mutual fund performance in 2011. Now, you may wish to know what is meant by benchmark. Benchmark is nothing but an index, which is considered as a standard by the mutual fund provider, and its aim is to give its investors returns at least equivalent to those of the benchmark. Ideally, a good mutual fund company having talented fund managers would look to surpass the benchmark returns. So, as an investor, you should look at a fund which has surpassed the benchmark returns consistently, as against that fund which is under performing its benchmark. You also need to consider the time in which funds have given returns to their investors. Comparison between mutual funds should be made for the same time period.

Risk Management
Investor wealth can be multiplied only if the fund managers are successful in managing risks. Since mutual funds invest investor money in stocks, returns will be negative in times of a market crash. So, the fund manager has to do the balancing act by earning more in the boom time and adding stocks that would be least affected by the downturn. So, invest only in funds which have a risk protection to get maximum returns.

Mutual Fund Cost
Investors can gain the most if there are no added expenses for signing up with mutual fund companies. You should look at what are the service / maintenance charges which funds are charging. Choose the fund offering its services without any hidden costs or exorbitant charges.

High Yield Mutual Funds

Here are some high yield mutual funds:

    * Principal High Yield A
    * Aegis High Yield
    * Rydex High Yield Strategy A
    * UBS PACE High Yield P
    * ING Pioneer High Yield I
    * Templeton Global Bond advantage
    * Vanguard Wellington
    * Fidelity Contrafund

This was all about how to compare mutual fund performance and top mutual funds in today's market. Hopefully, you will be able to choose the right fund for yourself after this explanation. All the best and think smartly!