Saturday 30 April 2011

Top Performing Mutual Funds

Mutual fund long term investments have always given decent returns to the investors. Before knowing about the top performing mutual funds 10 years or the top performing mutual funds 5 years, any investor should first understand the concept of mutual funds clearly. This can help the investors in choosing the right fund from so many mutual fund schemes available in the market. Before we know about the names of the top performing mutual funds, let us first acquaint ourselves with how to invest in mutual funds in the next section.

Mutual Fund Investments

The concept of mutual funds originated many years ago and since then these funds have gained a lot of popularity among the investors. Mutual funds were among the very few investment options that could save investors from stock market crashes. Mutual funds can be the best investments for people not knowing too much about the stock markets. So, instead of directly risking your money, you can invest in the market through mutual fund companies. Every mutual fund company has its team of researchers, financial analysts, fund managers and experts of the capital markets. The research is very thorough and strong and hence the chances of getting great profits increase. Retail investors have much less sources and knowledge of the happenings in the stock market and hence they can get carried away by wrong advice from people. The mutual fund ratings help people to distinguish the performing funds from the non performing ones.

In the mutual fund investments, investors get the options of choosing from funds such as high risk high return fund, medium risk medium return fund, low risk low return fund. Once you approach the mutual fund company, they will be able to explain to you the various schemes and help you to find out which one would be the best for you considering your age, investment time horizon, risk taking ability and other things. Your money will ultimately get invested in the capital markets in some of the finest companies promising good returns in the days to come. There are many mutual funds which offer the option of investing every month as per your convenience which are generally known as the systematic investment plans. This would be the best choice for people who do not have a huge amount to invest in a bulk.

Short term mutual fund investments are subject to stock market risks and volatility. So, investors are generally advised to look at mutual funds a s a long term investment. What technique is used by the mutual funds these days is that a diversified investment is done for clients to minimize the risk and maximize the profits. All sectors of the economy do not perform well all the time and hence investing in companies belonging to diverse sectors would be profitable for retail investors. Now that we have understood the ways of identifying top performing mutual funds, let us know which are the most preferred mutual funds these days.

Most Popular Mutual Funds

Given below are the names of the top performing mutual funds for your reference:

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

When you search for the top performing mutual funds, you should look at consistency of return and fair practices along with the reputation of the mutual fund company. These companies will be charging you for the quality service which they provide you and hence you also need to be aware of these charges by consulting industry insiders. You need to educate yourself regarding the advantages and disadvantages of mutual funds for proper investing. Good luck for your investments and do well!

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