Risk and reward in mutual fund investing

May 15, 19 Risk and reward in mutual fund investing

Posted by in Investment Services

Mutual funds are an interactive and organized platform where investors invest their money in various asset classes and earn good returns. It is actually an intelligent Saving Scheme as it helps investors in saving their money by investing it in a small purchase in the form of shares. The money invested by investors is used by the mutual fund company for investing in a scheme to operate in the market so as to earn good returns which is then shared back to the investors who invested the money. It is a beneficial two-way scheme benefiting both sides by sharing the profit earned among them. Mutual funds are basically classified into three categories on the basis of their investment: Small-cap mutual funds Mid-cap mutual funds and Large-cap mutual funds In the first two types of mutual funds, the funds are invested in small companies with small market capitalization whereas in the last type of mutual fund, the funds are invested in large companies with large market capitalization. All types of mutual funds have their own benefits in accordance with the investment. Risk and reward in mutual funds Where there is a reward, there is a risk. Mutual funds offer decent returns to investors who invest their money, but it also comes with a certain risk. Some benefits or rewards provided by mutual funds are: Decent returns – Mutual funds provide decent returns to investors. Regular source of income – Mutual funds also come with a scheme for helping those who are looking for a stable source of income for their regular needs. Liquidity – Mutual funds offer a high degree of liquidity by allowing the facility of instant redemption of money as and when required by the investor. Regulation – Mutual funds are regulated by SEBI (Securities and Exchange Board of India) providing confidence in the form of security to investors. In addition to all benefits, certain risk factors are also associated with mutual funds. The risk in mutual funds depends upon the type of...

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Investing Money and How You Should Do So?

Nov 14, 18 Investing Money and How You Should Do So?

Posted by in Investment Services

You might have just hit your early 30s, or it has been only a few years with your new job, but someone or the other might had already suggested you to start investing. Investing is an excellent option to develop your wealth for the future. Not only an investment helps you to grow money for your future but also at present investment does not demand a lot of money to get started. You select the right investment option, and these small amounts of money will be turned into fortunes over time. But in the market, you might come across many investment options. You must have faced the question of investing money and how you should do so? Following are the investment options: Mutual Funds- Mutual funds are good for those who desire to balance both their returns and risks. The SIP mutual fund is the most preferred investment option nowadays. Public Provident Fund- This tax-free, safe and long-term investment money gets locked for 15 years and on which you earn compound interest. Such total money accumulated over the years is handed over at the end of the maturity. Stock Market- Many investors opt for the stock market. As you buy a stock of a company the company when it earns profits pay you a portion of it as dividends based on the number of stocks you hold. Bonds- Bonds are like you are giving a loan to the company. And you will earn money in the form of interest which the company will pay you for lending the loan. Bonds are less risky than stocks. Physical Commodities- You can also invest in physical commodities such as gold or silver which offers safeguard against tuff financial crunch. You can choose from a gold deposit scheme, gold bar etc. To learn more about investing money and how you should do so, you may refer to https://www.investopedia.com/terms/m/mutualfund.asp. 3 people like this...

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Tips to Find a Good Mutual Fund to Invest In

Jul 04, 18 Tips to Find a Good Mutual Fund to Invest In

Posted by in Investment Services

Do you want to begin investing but are intimidated by the process? If so, you definitely aren’t alone. Newbies to investing can find it challenging to grasp what to do, when to make a move and what to invest in. A popular investment for many people is mutual funds. However, before you can put your money anywhere, you have to determine the best mutual funds to invest in. Some tips to help you make this decision can be found here. Determine Your Risk Tolerance When trying to figure out your risk tolerance, you should consider whether you can accept significant changes in the value of your portfolio. If not, it’s best to find a more conservative investment option. Make sure you find an investment that matches your risk tolerance so you don’t experience issues you weren’t expecting. What’s Your Time Horizon? You also need to consider your time horizon. This means how long you can let your money remain tied up in the investment you make. Are you going to have liquidity issues in the near future? When you invest in mutual funds, even when you find the best mutual funds to invest in, these may have sales charges that can take a significant amount out of your return over short time periods. To mitigate these charges, you should plan on investing your money for at least five years. If you are unsure about what type of risk you can accept or have questions about investment time horizons, it may be beneficial to work with a professional. They can help you find the best mutual funds to invest in and ensure all your questions are answered. Be the first to...

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