Mutual funds are no longer a new term. They are very popular that everybody has started investing in it. In order to make everybody invest, many plans like Systematic investment plans were also introduced. Everybody wants to invest in funds, because it yields lot of profit. It has many advantages. Some of them are listed here below.
Advantages:
- Small investments as well as large investments can be made. Flexibility is more.
- Small investments also yield profit due to the SIP plan and rupee cost averaging.
- Risk can be reduced due to diversification. You cannot predict the performance of shares. They do not give steady performance at all times. So, many tend to invest in different types of shares.
Excellent and new schemes are introduced by the top rated companies. Some of the top rated fund companies are SBI, Franklin Templeton, HDFC Asset Management Company and Reliance. If you take the past mutual fund schemes and compare the results of them. They have produced tremendous results. Some of the top performing mutual funds are
- Tata Asset Management
- Franklin Resources
- Birla Sun Life Asset management
- Britain Standard Life Investments
- Yacktman Fund
- Prime Cap Odyssey Growth Fund
In the year 2010, some of the the top schemes that are performing well are
- HDFC Tax Saver
- ICICI Prudential Tax Plan
- Religare Tax Plan
Before investing, proper research and data collection has to be done. Information about scheme, returns, fund company and fund manager has to be collected. Many online companies and websites provide updated information and details about shares and schemes.
Next Step: Start Collecting the data required for investing.
