Saturday 30 April 2011

Low Risk Mutual Funds

Mutual fund investments can give great returns if the investor has a longer time horizon for his investments and invests in the right fund. Though you get to know about the top low risk mutual funds through many sources such as business magazines, investment advisers and the Internet, you need to study the investment documents of mutual funds carefully to know whether the fund suits you and if it will fulfill your return requirements. Before we know of the low risk mutual funds or the top performing mutual funds available in the market, let us first know the basics of mutual fund investing in the next section.

Basics of Mutual Fund Investing

Mutual funds can be classified as high risk high return, low risk low return, and medium risk medium return ones. Though many investors are interested in the high yield mutual funds, the risk taking capacity of every investor is not the same. So, investors not wishing to risk their money can go for the low risk mutual funds which may give a lesser return than the high risk ones, but will still help you make more returns than normal savings. Diversified mutual funds which invest your wealth in a planned manner in stocks of different upcoming and out performing sectors can be the ideal choice for defensive investors. The return achieved from diversified mutual funds is always better than the normal funds due to the extremely professional way of handling investments of clients.

Before you invest your money in a mutual fund, you should be fully aware of the products of all mutual fund companies. You need to compare their performance over the years and find out which fund has surpassed investor expectations consistently. Investing in such a well managed fund would naturally be the right choice for investors. A mutual fund should be such that it does not risk your money like direct stock market investments and yet gives anything between twelve to twenty five percent of annual return on your investments.

The role of the fund managers is extremely important in determining the success of a mutual fund. The return the investors will get will directly depends on the expertize of the fund managers in handling difficult situations, especially when the market moves down and starts giving negative returns to the investors. Mutual fund mangers also need to track global markets to explore un-discovered investment opportunities. There are many financial institutions who offer mutual fund schemes for retail investors. By consulting your investment adviser, you can jump into the world of investing and comfortably emerge as a successful and money making investor. Now, having known of the low risk mutual funds, let us know which are the best mutual funds for 2011 in the next section.

Top Performing Mutual Funds

Here are the top performing mutual funds for this year:

    * American Funds Capital Income Builder
    * Templeton Global Bond advantage
    * Vanguard Wellington
    * Dreyfus International Bond
    * Fidelity Contrafund

To read more Buzzle articles on mutual funds, you can refer to:

    * Mutual Funds for Dummies
    * No Load Mutual Funds
    * Index Funds Vs Mutual Funds

This article on low risk mutual funds and top performing funds will help you to choose the right mutual fund for yourself. Take the right decision and see your wealth grow rapidly. All the best!

No comments:

Post a Comment