Mutual funds a very commonly used term, which means the kind of fund where in the accumulated money of the various investors’, are invested in various projects or stocks. The main motive is to earn good profit in the end. Actually through mutual fund people who have no time to invest in stocks or do not have information about various new investment opportunities; invest money in mutual funds. This is dones so that the investment work which requires full consideration and knowledge is done by the experts on the behalf of the investor. A number of mutual funds investment options are available. In this article we will take a look at the followings.
1. The methods and benefits of investing in mutual funds,
2. Ten best mutual funds of the world, and finally,
3. Suggestions for the common investors to improve their returns from them.
Benefits of investing in mutual funds.
A number of benefits of investing in mutual funds are resulting in heavy investment and interest in mutual funds by the common masses. These benefits are as follows.
Better returns than bank rates of interest.
Capital gain with the time span.
Interest on investment after proper intervals.
No time investment is needed in searching for new avenues. The mutual fund experts do that on your behalf.
More chances of profits and lesser chances of losses.
The taste of stock market returns can be taken safely through investing in mutual funds.
Safer investment than any other investment.
Best management of the investment made by the highly experienced mutual fund expert manager.
No limit to how much you can invest.
Good pace of investment growth is observed.
Thus the above stated benefits are just few of the unlimited benefits of investing in mutual funds.
Five best mutual funds.
Now we talked a lot about the benefits let now tell you the best mutual funds of the world, which fully comply with the above stated benefits. The following mentioned mutual funds of the world are the five best mutual funds. These mutual funds performed very well as compared to other mutual fund of the other mutual funds of the same stream. In the end these mutual funds gave handsome returns to their investors. These are as follows.
Best five Mutual Funds of 2007:
On the first position is AIM China A, which is symbolized as AACFX. The mutual fund gave a return of 85.4% till September end. This return is the maximum return given by any other mutual fund of the world till date.
On the second position is the Nationwide China Opportunities A, which is symbolized as GOPAX. This mutual fund is giving a handsome return of 76.9% till September end. This is the second highest return given by any other mutual fund of the world.
On the third position is the Direxion Latin America Bull 2X Inv, it is symbolized as DXZLX. This mutual fund is giving a return of 75.9% till the end of September. The fund showed great pace and is the favorite of many investors.
On the fourth rank is the Dreyfus Premier Greater China A, which is symbolized as DPCAX. This fund showed great upward movement in the last few months and till the end of September it was up at 73.9% which is quite tempting.
And on the fifth position it’s the Matthews China, which is symbolized as MCHFX. The mutual fund is up at 72.0% till the September end, and is trying to take over all the other mutual funds with its fast pace of growth.
Thus the above mentioned mutual funds are giving the best results and are the best among the family of mutual funds, which is proved with the percentage given by them in their third quarter. Other notable mutual funds giving noteworthy results are as follows.
Guinness Atkinson China & Hong Kong, symbolized as ICHKX giving return of 69.9%.
ProFunds Ultra Emerging Markets, symbolized as UUPIX giving return of 67.6%.
Eaton Vance Greater China Growth, symbolized as EVCGX giving return of 66.4%.
Direxion Commodity Bull 2X Inv, symbolized as DXCLX giving return of 66.4%.
Columbia Greater China, symbolized as NGCAX giving return of 64.5%.
*The above stated useful information is supplied by the moneycentral.msn.com.
Mutual funds of Latin America, India and United States are also showing great pace of growth and development.
Suggestions for the common investors.
A number of suggestions that can help a person make wise investment and reap good results are given as follows.
Ist suggestion: Everyone today wants to invest but hardly people have full knowledge about investing in mutual funds i.e., the pre-requisite and documents needed to be kept safe later. According to the law you must receive the offer document or a prospectus before investing in any mutual funds. This offer document is called New fund offer or NFO in case the mutual fund is coming into lime light for the first time In case the mutual fund already exist than it is called the open end offer to buy the mutual fund at the market price. The details in the prospectus show the investment areas where the investments are going to be made. That is the objectives of the mutual funds are worth reading and understanding to evaluate the worth buying of the mutual fund or not. Not only that the past performance of the mutual fund may also be read in case the mutual fund already exists. The past records, returns and capital gains, all of them can help to take decision of investment in that mutual funds quite fairly. So, the first suggestion is to read the offer document carefully before investing.
IInd suggestion: It’s better to check out the fees amount or percentage so that you don’t stay in dark. Moreover the written documents of cutting fees should reach you as it is a law binding act. In case of non suppliance of information in written than in that case you may take any legal action against the company.
IIIrd suggestion: The last but not the least suggestion is that invest in the well-reputed company stock, which is showing good results in the past many years. Take some time to figure out the best suitable mutual fund because it’s the question of your hard-earned money. You may not be able to give it time after wards. Do not go for false promises of returns. Do not go after the aggressive advertisements. Just follow the best perfomer and you will reach your target easily. After investing show trust in your investment. Do not jump to other conclusion. Stay invested in your investment, which you made after careful go through.
The writer want to thank moneycentral.msn.com for supplying the valuable information to the writer without which the motive of writing this article would not have been completed.