Which is the best Mutual Fund Scheme in India?

We are often asked by clients to suggest please tell us which is the best mutual fund that I should invest in or please advise which mutual fund should I buy?

There is no single fund or scheme that can be described as best. NO fund or scheme fits into all the criteria for all investors. If there was a case then why would mutual funds companies launch 100’s of schemes? Every scheme has different benefits, is suitable for different time frames and carries different risks associated. If you ask an advisor, I want to invest INR 10000 per month, please tell me which fund should I invest in and he says invest in XYZ fund. Believe me he should be the last person whose advice you should accept.

As written earlier investors need to take into account lot of factors before deciding which fund they want to invest in. So if you want to invest in a mutual fund think of

Purpose and period of investment: Mostly investors have a purpose that they want to save for and based on that purpose they decide on the time frame that they can stay invested for. So lets say if you want to save for a car, then the time frame you are looking at is more or less 2 – 3 years, if you want to save for your kids education then you are thinking of roughly 10 – 15 years and if you are saving for your retirement then you are thinking for 20 – 30 years. Various kinds of funds also have different time frames that they are suited for. Like equity diversified fund will be more suited for a longer time frame, a balanced fund for a long term to mid term and debt and FMP for short durations. So the purpose and the suitability of the kind of fund with respect to the time frame you can remain invested for should be taken care of.

Risk profile: Every individual’s risk profile is different from the other. There are risk takers, risk neutrals and risk averse investors. Risk takers are the ones that are even ready to pay premium in order to get higher returns, risk neutral will be someone who will like to take little risk for high/mid returns, whereas risk averse will be someone who will take low returns but will not take any risk on the capital invested.

Similarly different category of funds also comes under different risk profiles depending on the underlining product they invest in. A fund that invests only in equities is of course more risky than the fund that invests in debt products.

Age profile: The age bracket one is in, responsibilities fulfilled, responsibilities pending and personal personality often determine the risk an individual can take. Keep this factor in mind while choosing the option you choose makes complete sense.

Past performance: Often people say, “This fund has given 18% returns annually for the last 5 years but what is the guarantee that the same will be repeated.” Agreed, there is no guarantee, but at least it gives you certain figures and reasons to base your future expectations on.

Who would you place your bet on to score a 100, Sachin Tendulkar or Rohit Sharma?

Of course Sachin, because he has performed over the years which even though is not a guarantee of future performance but gives us the reason to expect that he will score a 100.

Comparison can give you the wrong picture if you compare two different things. If you compare an apple with another apple the results will be valid and would serve good purpose, but if an apple is compared with an orange then the results will not serve any purpose and the decision taken on that behalf will always be wrong. Hence while choosing between two funds it should always be borne in mind that both the funds should belong to the same category and invest in the same asset class.

Size of the fund: Even though size of the fund does not matter directly but indirectly it does have an impact. Large funds more or less have a defined structure and protocols that are followed by fund managers. So even if the fund manager leaves them it does not affect the performance of the fund to a large extent.

Choosing the correct fund that you want to invest in has never been an easy task for an investor but with technology giving access to information, if investors weigh their options on the factors discussed then the chances that they will be able to choose the appropriate fund are pretty high. The best way still would be to take professional advice from people that deal with mutual funds.

VISIT http://www.NriCapital.com/ to Invest in Indian Mutual Funds ONLINE.!

Source:http://www.prlog.org/11877539-which-is-the-best-mutual-fund-scheme-in-india.html

How NRIs & PIOs can Invest in Indian mutual funds?

If you do not have much of market expertise which is very much needed as a purchase back up then it would be really foolish on your part to invest in India actually. But mutual fund is one big time relief for any kind of investors. For this kind of investment you really do not require knowledge in depth of the Indian markets. If you are just plain and simply interested in mutual fund investment then you can go for it without a second thought. In this article we shall take a look at the steps that you are expected to follow.

You must try and understand the mutual funds that are open-end from India. Liquidity is offered by these and you will also receive the opportunity to buy and sell shares at a value which is related to their net asset values actually. There is no fixed date of maturity for them

Now you must also have this knowledge that closed ended options possess fixed maturities and this period can be of 2 years and can extend up till 15 years easily. You can directly jump into investing in these funds when they are just freshly introduced in the market. After the period of initial issue you may also choose to buy them in the stock market.

You must definitely realize one fact that interval opinions do comprise of features of both open and closed-end funds. Now the shares of these funds from India can be traded over the stock market or it can also be bought or sold at intervals which have been previously set.

Now we should take a look at what are the steps involved in collecting relevant information.

You must appreciate the fact that if you are deciding to invest in the foreign markets then you are actually opening your chances of increasing your income and provide a growth of your capital.

You must first of all find out whether market exposure to India is already something that is existential in your portfolio.

If you can manage a discussion with a financial adviser or broker on your objectives, investment time horizon or risk tolerance then it would be really great. You an also sit with them and determine what portion of your portfolio you wish to contribute in the mutual funds of India.

You must understand that the mutual funds in India is not something that is unaffected by the development of world events. There can be social and political changes that can bring about a change in the mutual funds.

When you wish to invest in the mutual funds in india then you must keep one fact in mind. The currency risk is something that you just cannot choose to ignore when investing in India. So be ready to take this risk actually.

You can choose to do some research work on the Indian mutual funds by taking a look at: nrifinanceguide.com

You must try to find out and obtain as much information as possible on the prospectus and the performance of those funds that you find interesting enough. Take a look at them very thoroughly before you jump for any kind of investment actually.

You have to decide on those funds that would best serve your purpose. For this you can definitely choose to discuss it with your broker or financial adviser. And you must do the transaction through them.

So these are some of the important points that you should keep in your mind while deciding on the Indian mutual funds.