Which mutual fund is best to invest?
Money market mutual funds = lowest returns, lowest risk
They are considered one of the safest investments you can make. Money market funds are used by investors who want to protect their retirement savings but still earn some interest — often between 1% and 3% a year. (Learn more about money market funds.)
- HDFC Mid-Cap Opportunities Fund.
- Parag Parikh Flexi Cap Fund.
- ICICI Pru Bluechip Fund.
- HDFC Flexi Cap Fund.
- Nippon India Small Cap Fund.
- HDFC Balanced Advantage Fund.
- ICICI Prudential Equity & Debt Fund.
- ICICI Prudential Corporate Bond Fund.
Fund (ticker) | 10-Year Avg. Ann. Return |
---|---|
Shelton Nasdaq-100 Index Investor Fund (NASDX) | 18.21% |
Schwab Fundamental US Large Company Index Fund (SFLNX) | 11.71% |
Fidelity Intermediate Municipal Income Fund (FLTMX) | 2.28% |
Dodge & Cox Income (DODIX) | 2.52% |
- 90.25% ProFunds Semiconductor UltraSector Fund SMPIX.
- 63.17% Bitcoin Strategy ProFund BTCFX.
- 61.05% T. Rowe Price Emerging Europe Fund TREMX.
- 50.98% ProFunds UltraChina UGPIX.
- 48.32% Fidelity® Select Semiconductors Port FSELX.
Large Cap funds | 1-year-return (%) |
---|---|
Quant Large Cap Fund | 56.31 |
Bank of India Bluechip Fund | 49.09 |
JM Large Cap Fund | 47.09 |
Nippon India Large Cap Fund | 46.42 |
Money market mutual funds = lowest returns, lowest risk
They are considered one of the safest investments you can make. Money market funds are used by investors who want to protect their retirement savings but still earn some interest — often between 1% and 3% a year. (Learn more about money market funds.)
- Quant Small Cap Fund. ...
- Quant Infrastructure Fund. ...
- SBI Tax Advantage Fund-III. ...
- Quant ELSS Tax Saver Fund. ...
- Nippon India Small Cap Fund. ...
- Axis Small Cap Fund. ...
- Quant Mid Cap Fund. ...
- ICICI Pru Smallcap Fund.
(You must convert the rate of return to the monthly figure through dividing by 12). You also have n = 10 years or 120 months. FV = Rs 1,84,170. So, the future value of a SIP investment of Rs 1,000 per month for 10 years at an estimated rate of return of 8% is Rs 1,84,170.
- Set your goals.
- Consider passive vs. active funds.
- Review types of mutual funds.
- Hone in on specific funds.
- Review the fund's prospectus.
- Look at costs and fees.
- High-yield savings accounts.
- Money market funds.
- Short-term certificates of deposit.
- Series I savings bonds.
- Treasury bills, notes, bonds and TIPS.
- Corporate bonds.
- Dividend-paying stocks.
- Preferred stocks.
How much should I invest in mutual funds?
To determine how much to invest in Mutual Funds monthly, subtract your monthly expenses including contributions to your emergency fund and short-term goals from your monthly income. The remainder is what you can allocate to investments.
While there is no precise answer for the number of funds one should hold in a portfolio, 8 funds (+/-2) across asset classes may be considered optimal depending on the financial objectives and goals of the investor. Further, higher allocation of portfolio to the right fund is of crucial importance.
- Fidelity 500 Index Fund (FXAIX).
- Fidelity Total Market Index Fund (FSKAX).
- Schwab S&P 500 Index Fund (SWPPX).
- Schwab Total Stock Market Index Fund (SWTSX).
- Vanguard 500 Index Fund Admiral Shares (VFIAX).
- Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX).
If you invest Rs 1000 for 20 years , if we assume 12 % return , you would get Approx Rs 9.2 lakhs. Invested amount Rs 2.4 Lakh.
If you were to invest Rs 1,000 per month into an equity SIP over a span of 30 years at 12 per cent per annum, you would have invested only Rs 3.6 lakhs. However, your portfolio's value would have grown to an impressive Rs 34.9 lakhs.
- iStock. 1/8. Wealth Multiplier. ...
- Getty Images. 2/8. Quant Small Cap Fund. ...
- Agencies. 3/8. Bandhan Small Cap Fund. ...
- iStock. 4/8. Franklin India Smaller Companies Fund. ...
- Agencies. 5/8. Nippon India Small Cap Fund. ...
- iStock. 6/8. ITI Small Cap Fund. ...
- Agencies. 7/8. ...
- Getty Images. 8/8.
Disadvantages include high fees, tax inefficiency, poor trade execution, and the potential for management abuses.
Mutual funds are managed and therefore not ideal for investors who would rather have total control over their holdings. Due to rules and regulations, many funds may generate diluted returns, which could limit potential profits.
- Stocks.
- Real Estate.
- Private Credit.
- Junk Bonds.
- Index Funds.
- Buying a Business.
- High-End Art or Other Collectables.
While it is true that one can invest at any age, it is also valid that those starting early have an undue advantage thanks to compounding. For those in the 18-25 age bracket, the mantra is clear: the earlier, the better. With time as their most valuable asset, young investors have a significant advantage.
How much should a beginner invest in mutual funds?
You must strive to save at least 30% of your gross income or ₹60,000 every month. To calculate how much amount you should invest in SIPs, we will have to use the standard formula, which is 100 minus your age to be invested in equity through mutual funds.
While it is true that if one goes for direct stocks, there is a lot more freedom to build a concentrated portfolio of stocks that can deliver much higher returns than basic mutual funds, it also means that if just a few of those stock picks do very badly, then a concentrated portfolio of direct stocks can crush the ...
Can I withdraw money from mutual funds anytime? Yes, you can withdraw money from most mutual funds anytime, unless they have a lock-in period.
Years Invested | Balance At the End of the Period |
---|---|
10 | $102,422 |
20 | $379,684 |
30 | $1,130,244 |
40 | $3,162,040 |
Mutual funds have sales charges, and that can take a big bite out of your return in the short run. To mitigate the impact of these charges, an investment horizon of at least five years is ideal.
References
- https://www.kotaksecurities.com/mutual-funds/how-mutual-funds-perform-during-market-crashes/
- https://www.forbes.com/advisor/in/investing/direct-vs-regular-mutual-fund/
- https://www.investopedia.com/articles/basics/07/liquidity.asp
- https://www.etmoney.com/learn/mutual-funds/what-is-mutual-fund/
- https://www.bankrate.com/investing/guide-to-mutual-funds/
- https://www.bajajfinserv.in/investments/how-to-withdraw-money-from-mutual-funds
- https://myfloridacfo.com/docs-sf/deferred-compensation-libraries/dc-documents/ip-documents/aig/mutualfunds.pdf?sfvrsn=b773a7e4_4
- https://www.forbes.com/advisor/banking/savings/millionaire-calculator/
- http://www.hsbcportfoy.com.tr/en/mutual-funds/risk-ratings-of-mutual-funds/risk-ratings-of-mutual-funds
- https://www.bajajfinserv.in/investments/long-term-vs-short-term-mutual-funds
- https://smartasset.com/investing/face-value-of-a-bond
- https://www.carsongroup.com/insights/blog/three-things-every-investor-should-know/
- https://www.mutualfundssahihai.com/en/what-happens-when-mutual-fund-company-shuts-down-gets-sold
- https://www.nasdaq.com/articles/got-%24500-to-invest-monthly-this-exchange-traded-fund-can-make-you-a-millionaire.
- https://www.investopedia.com/articles/investing/092415/how-mutual-fund-companies-make-money.asp
- https://www.investopedia.com/ask/answers/101915/should-i-cash-out-mutual-funds-pay-debt.asp
- https://www.quora.com/How-much-money-have-you-made-from-mutual-funds
- https://www.moneycontrol.com/news/business/personal-finance/should-i-invest-directly-in-stocks-or-take-the-mutual-fund-route-12254401.html
- https://www.forbes.com/advisor/investing/best-mutual-funds/
- https://www.nerdwallet.com/article/investing/how-to-start-investing
- https://www.myperfectresume.com/career-center/interviews/questions/why-should-we-invest-money-in-hiring-and-training-you
- https://www.morningstar.com/portfolios/5-best-ways-invest-money
- https://www.moneysavingexpert.com/savings/investment-beginners/
- https://www.investopedia.com/articles/investing/110314/key-differences-between-etfs-and-mutual-funds.asp
- https://www.investopedia.com/ask/answers/091815/when-are-mutual-funds-considered-bad-investment.asp
- https://www.investopedia.com/terms/d/downside-deviation.asp
- https://www.smallcase.com/learn/mutual-funds-for-beginners/
- https://www.experian.com/blogs/ask-experian/pros-and-cons-of-mutual-funds/
- https://www.edelweissmf.com/investor-insights/mutual-fund-investment-tips-and-articles/top-6-benefits-of-investing-in-mf
- https://www.nerdwallet.com/article/investing/best-performing-mutual-funds
- https://www.investopedia.com/ask/answers/111714/what-minimum-amount-money-i-can-invest-mutual-fund.asp
- https://www.icicibank.com/blogs/mutual-fund/fund-of-funds
- https://www.bmo.com/main/personal/investments/learning-centre/mutual-funds-vs-stocks/
- https://www.businesstoday.in/mutual-funds/best-mf
- https://www.westernsouthern.com/investments/mutual-funds-vs-stocks
- https://www.bankbazaar.com/mutual-fund/mutual-fund-returns.html
- https://koshex.com/blog/reasons-why-people-avoid-investing-in-mutual-funds
- https://www.icicibank.com/blogs/mutual-fund/how-much-to-invest-in-mutual-funds
- https://www.kotaksecurities.com/mutual-funds/is-it-right-time-to-invest-in-mutual-funds/
- https://finance.yahoo.com/news/where-millionaires-keep-money-070638027.html
- https://smartasset.com/investing/pros-and-cons-of-stocks
- https://www.5paisa.com/blog/best-mutual-fund-for-sip-plan-to-invest-in-india
- https://www.bankbazaar.com/mutual-fund/mutual-funds-vs-equity.html
- https://www.investopedia.com/ask/answers/090415/are-mutual-funds-considered-retirement-accounts.asp
- https://www.bankrate.com/investing/low-risk-investments/
- https://www.investopedia.com/investing/advantages-of-mutual-funds/
- https://time.com/personal-finance/article/mutual-funds-vs-stocks/
- https://smartasset.com/investing/should-i-invest-in-mutual-funds
- https://www.investopedia.com/ask/answers/10/mutual-funds-advantages-disadvantages.asp
- https://www.rocketmortgage.com/learn/benefits-of-real-estate-investing
- https://groww.in/blog/how-many-mutual-funds-invest
- https://www.investopedia.com/investing/how-pick-best-mutual-fund/
- https://www.amfiindia.com/investor-corner/knowledge-center/what-are-mutual-funds-new.html
- https://www.nerdwallet.com/article/investing/investment-strategies
- https://www.usatoday.com/money/blueprint/investing/best-mutual-funds/
- https://www.utimf.com/articles/investing-in-mutual-funds-when-the-market-is-down
- https://www.investopedia.com/articles/investing/111315/trading-mutual-funds-living-it-possible.asp
- https://money.usnews.com/funds/mutual-funds
- https://www.businesstoday.in/personal-finance/investment/story/sip-of-rs-1000-monthly-can-lead-to-significant-gains-heres-how-much-you-can-save-in-10-20-and-30-years-410464-2023-12-22
- https://www.livemint.com/mutual-fund/best-mutual-funds-these-large-cap-funds-gave-over-40-return-in-the-past-one-year-investments-quant-large-cap-fund-11712405162500.html
- https://www.bajajfinserv.in/investments/what-is-a-mutual-fund
- https://www.nerdwallet.com/article/investing/how-to-invest-in-mutual-funds
- https://www.cnbc.com/2022/05/10/the-7-levels-of-financial-freedom-according-to-a-millionaire-50percent-of-us-workers-are-at-level-2.html
- https://groww.in/blog/penalty-withdrawing-money-mutual-funds
- https://finance.yahoo.com/news/3-safest-mutual-funds-buy-000959829.html
- https://www.investopedia.com/articles/investing/091715/5-characteristics-strong-mutual-fund-shares.asp
- https://www.kiplinger.com/investing/mutual-funds/how-to-find-the-best-mutual-funds-for-beginners
- https://www.worldexcellence.com/pros-cons-of-investing-in-stocks/
- https://www.sciencedirect.com/topics/economics-econometrics-and-finance/money-market-fund
- https://www.bajajfinserv.in/investments/advantages-of-mutual-funds
- https://m.economictimes.com/markets/stocks/news/the-optimal-number-of-mutual-funds-that-you-should-hold-in-your-portfolio/articleshow/99009145.cms
- https://www.investopedia.com/ask/answers/050415/what-good-annual-return-mutual-fund.asp
- https://quizlet.com/569417215/chapter-4-investments-flash-cards/
- https://www.quora.com/If-I-invest-1000-per-month-in-SIP-for-20-years-how-much-will-I-return-after-20-years-For-this-amount-which-fund-is-best-for-me
- https://www.schwab.com/learn/story/are-mutual-funds-good-investment
- https://www.etmoney.com/mutual-funds/featured/best-low-risk-mutual-funds/21
- https://smartasset.com/investing/mutual-funds-risk-high-or-low
- https://www.livemint.com/money/personal-finance/how-much-of-my-salary-should-go-into-sips-11680110041064.html
- https://quizlet.com/495371746/lesson-65-investing-flash-cards/
- https://www.schwab.com/mutual-funds/understand-mutual-funds
- https://www.forbes.com/advisor/in/investing/is-mutual-fund-safe/
- https://www.ameriprise.com/financial-goals-priorities/investing/what-are-mutual-funds
- https://www.investopedia.com/articles/mutualfund/08/fund-of-funds.asp
- https://www.bajajfinserv.in/investments/how-to-choose-mutual-funds
- https://www.investopedia.com/terms/d/downsiderisk.asp
- https://www.shareindia.com/knowledge-center/mutual-fund/10-reasons-you-should-invest-in-mutual-funds
- https://www.livemint.com/money/personal-finance/mutual-funds-how-long-can-you-stay-invested-in-a-scheme-151678431620262.html
- https://www.kotaksecurities.com/mutual-funds/ideal-age-to-start-investing-in-mutual-funds/
- https://finance.yahoo.com/news/10-disadvantages-long-term-investments-224332091.html
- https://www.mydccu.com/learn/resources/blog/four-good-reasons-to-consider-investing
- https://www.livemint.com/money/personal-finance/when-is-the-right-time-to-start-investing-11704734414384.html
- https://www.ramseysolutions.com/retirement/what-are-mutual-funds
- https://www.linkedin.com/pulse/5-reasons-invest-your-money-questergate
- https://www.schwab.com/mutual-funds/benefits
- https://www.kotaksecurities.com/mutual-funds/how-mutual-funds-work/
- https://www.etmoney.com/blog/why-are-mutual-funds-better/
- https://www.experian.com/blogs/ask-experian/how-to-choose-mutual-funds/
- https://www.bajajfinserv.in/investments/what-is-monthly-income-plan-mip
- https://finance.yahoo.com/news/10-return-investment-roi-141300511.html
- https://quizlet.com/182633390/chapter-8-review-investing-and-retirement-flash-cards/
- https://m.economictimes.com/mf/analysis/5-smallcap-funds-offer-over-30-sip-returns-in-three-years/quant-small-cap-fund/slideshow/109534075.cms
- https://www.principal.co.id/en/general-risks-investing-mutual-funds-0
- https://www.bajajfinserv.in/investments/mutual-funds-vs-shares
- https://www.westernsouthern.com/investments/pros-and-cons-of-mutual-funds
- https://cleartax.in/s/mutual-fund-calculator
- https://www.investopedia.com/ask/answers/05/062305.asp
- https://www.investopedia.com/ask/answers/021615/what-safest-investment.asp
- https://gitnux.org/average-mutual-fund-return/