Top performing mutual funds in india
Investing in mutual fund is very good option for smaller investors, which allow them to participate in bonds and stock operations and increase their capital.
The mutual funds gained lot of popularity, because they have investments range between $25 and $100 000, which allows many ordinary people – teachers, doctors and workers to participate. The fund offers shares in exchange of capital; the fund manager invests the money; and according to the number of shares the investors has part of the winnings/ losses of the fund.
The mutual fund investment is similar to the stock exchange investment, still many people prefer it. There are few different types of mutual funds, depending of the investment type and period; and each fund has its list of investment objectives to follow.
When comes to investments the general question is – are they profitable?
The answer is the same everywhere – it depends of the situation – if the fund invests in stable, growing companies – of course; if not – the return may transform in a loss.
In India, people understood the opportunity the mutual funds give and the investments in this industry are constantly growing; with the developing Indian Economy, things get even better.
Since the mutual fund’s investments gained popularity, the question comes naturally- which are the top performing mutual funds in the country?
To determine the top performing mutual funds the researchers compare many criteria and sometimes put the fund in different category, according to the type of the investments it makes.
The annualised return rate of the mutual fund is among the most important criteria searched; after comes the amount and number of taxes and fees the fund has. These fees and taxes are regulated by the law, but sometimes they can cost much more than you thought. The manager evaluation is also among the searched criteria, along with the amount of the risk the mutual fund’s investments have.
Of course, there are more things that are compared from the professional organizations, but when comes to performance, we- the investors look, at these.
Still – what means top performer -means that the mutual fund has lot of investors and constantly attracts more; means that the fund’s investments are successful; and means also that it had reached high annualised return rate for its shareholders. This also means that the fund’s manager is among the best in the industry and knows well the market changes and his “character”.
The numbers say that if a mutual fund investing in low risk products has an annualised return of 15, 16 or 17% – he is among the top performers in India. If the mutual fund trusts mainly on equity and related instruments (90%) and has a return rate of 24-25%, he is also among the top performers.
The top performers in balanced mutual funds must have return of 18-20%, to be in top performers list.
The top ten performing mutual funds in India, responding to these numbers are published here – http://myinvestmentideas.com/2014/12/top-10-best-sip-mutual-funds-to-invest-in-2015/