Top Performing Mutual Funds

Best Alternative To Your Investment

By: - Mutual Funds - March 24, 2011
top performing mutual funds

Top Performing Mutual Funds are the companies that provide the best profit returns with minimum risk factor. You can choose to invest your money in any of these types of mutual funds companies as an alternative to investing your money in the stock market.

How Mutual Funds Work?

Mutual funds normally collect small amounts of money from multiple people and invest the same into various different entities to gain heavy profits. Generally there are three types of mutual funds in which you can invest your money. These are:

Equity Funds: When money is invested in these funds, the risk is higher as these funds are used to buy common stock only. However Equity funds provide chances to gain high profits.
Fixed Income Funds: In these funds, money is invested in government securities and thus they are considered as low risk funds but they provide less profit as compared to Equity Funds.
Balanced Funds: In these funds money is invested in both, stocks and government securities in order to reduce the risk and get the maximum out of the investment. The risk here is reduced because the money is distributed in various entities and it is unlikely that all of them could face downfall at a single given time. With the help of balanced funds, chances of gaining profits are higher as compared to Fixed Income Funds and lesser than Equity Funds.

Top Performing Mutual Funds

Some of the Top Performing Mutual Funds are: Templeton Global Bond Advantage, Fidelity Contrafund American Funds Capital, Income Builder, Dreyfus International Bond, Vanguard Wellington, etc. These companies are considered as top performing because they provide secure payback for your investment. Also, because these companies are in the market since quite a while they have a sophisticated reputation among their competitors and investors.

Share Market Investment vs. Mutual Funds

If you invest your money in the stock market it is likely that you can gain a good profit with your investment. However with the chances of gaining good profit there are equal chances that you may face losses in case the market goes down. On the other hand if you invest in mutual funds you do not have to worry about the investments, selection of the best companies, etc. You don’t even have to keep the track record of your investment as everything is managed by the organization in which you have invested. This process gives you lots of free time to carry on with your daily life routine without hampering.

Conclusion

It would not be wrong to say that investment in mutual funds organization is a wise investment as they distribute your money to invest in different entities and stocks. This reduces the risk factor involved in investing the entire amount at a single place and gives you chance to earn good profits out of your investments. On the other hand if you invest your money directly in shares, your profit or loss will solely depend on the profit or loss of the specific company, hence making you entirely dependent on a single entity. It is therefore advisable to contact mutual funds in case you are willing to invest you money somewhere.


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