Mutual Funds, when defined simply are a pool of funds by investors who wish to park their money and grow it in a certain span of time. Now financial goals can be different and so could be the time and risk taking ability. Thus, mutual funds have different types and classifications. So amongst the different types of
Mutual Funds there are stocks, bonds and money market funds. Now each of these different types of mutual funds have a different risk and reward ratio and should match fit your style. However, they say in general that "higher the potential return, higher is the risk", which is quite similar to what we all know that "no risk, no gain".
Now when trying to manage your mutual funds, there are no hard and fast rules or tips, but to mindfully choose your funds and do a realistic assessment of your funds, risk taking ability, time span you wish to invest your money into funds, your financial goals and expectations from the
fund performance. Also, you must be highly aware and should be closely monitoring the market for your funds performances.
Now all of this can be managed by some on their own, while for the others it would be best to seek help of experts who are qualified professionals are called Fund or Money Managers. They with their expert knowledge can help to diversify your funds, so that you don’t plot your money in no one category or type, because not always do all categories perform well. And while you depend and trust your money managers for all their financial advice, it would be wise that you keep a track on market and fund performances as well.
Amongst the 3 broad
types of mutual funds, i.e. Stocks also
Equity Funds, Bonds also
Income Funds and
Money Market Funds there are several further classifications that lets you choose from open-ended, closed-ended, sector and term specific funds, different capital size, tax saving and
index funds etc. These categories and schemes however vary from one fund management company to the other.
So, the best mutual fund tip is to make an informed and well calculated choice for your investments and manage them wisely.
The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. Certain factual and statistical information (historical as well as projected) pertaining to Industry and markets have been obtained from independent third-party sources, which are deemed to be reliable. It may be noted that since RNLAM has not independently verified the accuracy or authenticity of such information or data, or for that matter the reasonableness of the assumptions upon which such data and information has been processed or arrived at; RNLAM does not in any manner assures the accuracy or authenticity of such data and information. Some of the statements & assertions contained in these materials may reflect RNL
AM’s views or opinions, which in turn may have been formed on the basis of such data or information.
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Mutual Fund investments are subject to market risks, read all scheme related documents carefully.