how to invest in mutual funds for better and secure returns?

Answer 1

Your best bet is to go and set an appointment with a banker and have him/her go over all of your options. Than figure out what the best deal is for your lifestyle and go for it. remember you have to take action!!

Answer 2

A. Bankers and Insurance companies are the worst places (in general) to buy investment products.

B. The very nature of mutual funds means more risk not "secure returns". History shows us that long term investors do much better than those that use savings instruments (CD's, Savings etc.).
BUT: Back in 2000 my wife and I lost 30% of our portfolio in stocks. Luckily we've been investing for years and all of it was past profit. It's seven years later and we've regained all that we lost and have a significant amount more. Our average rate of return is much better than any CD (even with a 30% loss).

There's two ways to buy funds;
Brokers and investment advisors. High fees but worth the cost if you're not inclined to learn some basic info.

No Load Mutual Funds. Take some time. Read a couple of books on No-Load Funds. Follow an "asset allocation" that's good for you.

Any of the following can help you with no-load Funds;
Schwab (has thousands of funds)
Fidelity Brokerage (has thousands of funds)
Vanguard
T. Rowe Price

Be very careful of any specific advise you get on Yahoo Answers. You don't know the qualifications or motives of those that give answers.

Don't chase great past returns (many of these funds are very high risk). 3, 4 or five stars is fine. Many times a fund's rating is low because the investment area they're in is out of favor. For $150 a year Morningstar will report not only the number of stars... they'll show you what's "under the hood".
There are some one star funds I'd buy based on their disertation on why they're rated 1 or 2 starts.

Answer 3

There is no such thing as better and secure returns even in mutual funds. If you are lucky and if the share market is doing well you will get some returns. If the stock market is in doldrums you will not get anything. In fact you may loose money.
For example: if you invest money now in a mutual fund when the market is in a all time high at arountd 15000 points you will be alloted units at Rs 13.00 which is the current nett asset value. Now if the market crashes to 13000 points the nett asset value of the mutual fund will come down to Rs 12.00 and as such the units that were alloted to you at Rs 13.00 is now only Rs 12.00 and thereby you have lost Rs 1.00 on the unite alloted to you.
Any way if you are patient to wait for 3-4 years you may get a decent return.

Answer 4

I see two questions here, how do i invest in MFs and how do i invest to get better more secure returns. 1. my best suggestion, go directly to the fund, request a prospectus, and invest directly with the manager. 2. if you want better return you have to be willing to give up some security, i.e. the risk vs. return principle. But for better, more secure returns you can look at a MF with a equity income strategy or you can look into a gov. bond fund. the equity income will give you exposure to equities while collecting the dividends and the bond fund will probably return less but will give you absolute peace of mind because the invesments are of high credit quality and steady income streams from the maturing bonds.

Answer 5

Read some basic information:

1) Mutual Funds for Dummies, by Eric Tyson
2) http://www.invest-for-retirement.com has a free downloadable book
3) http://www.investopedia.com has some free tutorials

IMO, you should pick a mutual fund based on two aspects: The assets that it holds, and the costs it charges you. Learn about asset allocation and costs, and you will have better returns.

"Secure returns" is a subjective term. In order to get a decent return, you will need to take on a certain amount of market risk.

The two firms I recommend are www.vanguard.com and www.fidelity.com

Answer 6

Investment in mutual funds depends upon the market risk. It is not assured but it has potential to give a higher returns.
If you are aware of stock market , it is easy to know how mutual funds works. Investment in equity funds depends upon market risk.
Make diversification in your investment amount. Investment through Systematic investment plan i.e SIP is also a best option.
Selection of fund is also important.

You can also join my group
http://in.groups.yahoo.com/group/nshadv/

Answer 7

First of all select fund houses which have a conservative yet progressive philosophy like Sundaram or Franklin Templeton or DSP Merryl Lynch or the like because you want secure returns and yet better returns. Go always for SIP or monthly investment plans. Start now. Study their funds and select those which you think are good for you. Look for ratings and return on investment. Five star funds are always good. Happy investing!

Answer 8

Investment in mutual fund its market risk but, you think long term investment.not secure but u go long term,absolutely u satisfied after returns .my advise i check investor time horizon,age & how risk he depend . his risk profile check & suggest me how fund u invest. bcz, u r investment in sector fund ,largecap fund,midcap fund ,diversified fund its all depend u r risk profile.so u r choose any adviser .bcz u r wealth is better create.& ur portfolio is better manage.ur adviser u say," why this fund u invest & minimum how % u returnse".so,u find adviser 1st.

Answer 9

GO 4 NCFM XAMS THAT IS ALSO 4 MUTUAL FUNDS &LEAR ABCD OF MUTUAL FUNDS GO 4 IT ITS GOOD !