Saturday 30 April 2011

Good Mutual Funds

Mutual funds are surely a brilliant way to invest and make profits in the long term. There are many high yield mutual funds that can be deemed as safe investment bets and have been highly recommended by investment advisers. Ideally, mutual fund investments provide great returns in the long term. So, you should have an investment time horizon of at least five years to reap maximum benefits. In the next section, we shall try and understand how to identify good mutual funds.

Identifying Good Mutual Funds

Though mutual funds provide great returns, there are many funds in the market and it becomes necessary to identify the best ones and invest only in them. Choosing a wrong mutual fund can be disastrous and can create problems for you in achieving your financial goals. The mutual fund ratings can help you to know of funds which are really profitable for retail investors.

Past performance and investor satisfaction with a particular fund are very important factors to consider before opting for one. Mutual fund companies offer you the option of investing in a large cap fund or a mid cap and small cap fund. While the large cap funds aim at providing good returns by sectoral out performance, the mid cap funds can provide much more returns if handled in a professional manner by the fund managers. Investors can choose among these funds by taking into consideration their risk taking ability and personal choices. There are sectoral funds in the market which target a particular booming sector of the economy and make investments in the top stocks of those sectors. There are also fully diversified mutual funds which make investments in different sectors and eye companies posting good financial results and showing signs of continuous annual growth and steady margins. Good mutual funds are a way of avoiding the risk of direct stock investments which can erode your wealth considerably if wrong buying is done. The mutual funds vs stocks comparison given below will help you know the advantages of mutual funds.

Mutual Fund vs Stocks Comparison

While direct stock market investments are known to give astonishingly high returns, mutual fund returns are more stable and sure. This is because mutual funds are well managed by fund managers who are qualified and experienced finance professionals. The investments are therefore handled in a better way as the professionals have more knowledge of markets than individuals. Mutual fund investment advice will give you relevant information.

Though most good mutual funds have given good returns to investors even in the time of economic crisis, one needs to understand that there is always a small risk with funds as with any other investments. The list of top funds given below will help you along with the explanation on how to invest in mutual funds.

Best Fund Options for Investors

Here are good fund investment options for investors:

    * UBS PACE High Yield P
    * Principal High Yield A
    * Aegis High Yield
    * Rydex High Yield Strategy A
    * ING Pioneer High Yield I

Apart from these mutual funds, you can look for some more high yield options and the funds offered by internationally recognized financial services firms.

In this Buzzle article on good mutual funds, we have discussed the ways of investing in funds and earning great returns. A good fund can give anything between fifteen to twenty-five percent annual return to investors. So, think over it and take the right decision, Good luck!

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