what is a Mutual Fund?how does it woorks?how to juge that any Specific fund is bad/good?

Question

i m 26 and want to invest some of my saving in Mutual Fund.pls gid me.

Answer 1

Mutual fund offers everything an investor looks for, professional management, decent returns, transparency, risk containment and liquidity.

There are many mutual funds each from reputed business houses in India like State Bank Of India, Reliance, HDFC, ICICI, TATA, Sundaram Mutual Fund etc and foreign mutual funds like Fidelity, Franklin Templeton, etc. All the funds have given good returns and has been consistent for last many years. One of the scheme which has completed 10 years 5 months, Rs.1 lakh invested then is now more than Rs.20 lakhs.(Past returns may or may not be sustained in future.)

When you buy a mutual fund, you hand over the task of investing to a qualified and probably more knowledge fund manager who is paid for finding the right opportunities for you. As for customer services standards, mutual funds in India have been constantly raising the bar they have set for themselves. The services standards are comparable to what you will get any where else in the word.

What's more, you don't need millions to invest in a mutual fund. A lumpsum with Rs.5000 and just Rs.500/Rs.1000 for monthly investments.

To Select the best fund first you need to select the Investment Type (i.e. Equity, Debt, Balanced, Technology, Pharma or Cement). Then you need to compare the ROR (Rate of Return) for more than 5 years for the selected funds.

Answer 2

I'm also one of the so call "investor" of Mutual Fund. Actually mutual fund is quite a good type of saving because it had a quite high interest compare to normal savings. But however, the return of the saving cannot being seen in quite short time, so must be patient then.

Here go's, there are many type of mutual fund depend on which fund you interested. There are fund which are high risk, moderate risk and low risk. So there are some homework you need to do before investing in the fund. As my suggestion, for you, I suggest investing in fund which are low risk and the interest will be declared every year. But if you are the person who can take risk, try some overseas fund which are moderate in risk.

Many people thought this kind of fund is similar to market stock exchange. But it does not, it just there are some similar charateristic only. One of the similarity is when you bought the fund for example 0.25cent/unit. After few years, you sold at 0.50cent/unit, so you had earn a 0.25cent/unit. (Just example only). However, they will also declared some interest to you on every year or half, depend on the fund itself.

I think that all I can tell you. Since I just start invest this one years ago. However, you need to do some research before you purchase the mutual funds. Try to find a mutual fund person to consult.

Hope this will help.

PS: Are you a Malaysian???

Answer 3

the following is one element to shop in ideas about the Roth IRA account. there isn't in any respect any tax on it the position as there is on your 401k. This will change into major even as pondering your asset blend. income generating investments are taxed on the finished tax fee as will be your 401k. hence it truly is smart to make investments a minimum of a few of your 401k in income generating sources--bonds, LPs, REITs. The income from each and every of those is taxed on the finished tax fee besides. Now because the Roth IRA is not in any respect taxed, it truly is likewise smart to positioned a number of those sources into the Roth IRA also. and likewise fairness investments. What you exceeded over to coach are investments outside of those 2 autos. once you've some, they should be investments which could be taxed on the capital constructive houses fee--fairness investments. really, except you're contained in the utmost tax bracket it truly is smart to have portion of your fairness investments outside of a 401k. with assistance from doing so your finished tax bill will be decreased, rather if you're a lengthy time period investor. once you've the least hankering to make investments a number of you money in gold and silver those really should be interior of a Roth IRA. both are taxed as collectibles in the different case. yet another element to think about in regard to the 401k is that throughout destiny years the tax fee may really be larger, perchance a lot larger, than it at present is. because you actually don't have any determination of putting non-mutual fund investments interior of a 401k except for perchance business business enterprise inventory, it truly does make sense to make investments Roth IRA income business business enterprise stocks fairly than mutual funds. yet be careful. it truly is rather tempting for most to take a position with their Roth IRA account rather couple of minutes period trading which in the different case should be taxed on the finished tax fee. which could be a good thanks to diminish that value of the Roth account. Be somewhat careful. make investments contained in the likes of MCD, WMT, JNJ, BDX, KO, etc. or perchance ETP with its 8% dividend or PAA with its 7.5% dividend. and do not make investments it in fewer than 5 diverse organizations.