As you begin to grow in your career, you start to think about savings and investments. At this time, the first thing that comes in your mind is investing in mutual funds. But not everyone is clear with the concept of MFs. So, here in this piece, we are going to talk about its definition, benefits, and what are some of the best mutual funds India with great returns you can invest in.
The concept of mutual funds is different from most of the investment plans. This is because in this type of investment a pool of money is formed. In this, the money is collected from investors and invested in plans like stocks, bonds, and money market instruments along with some other assets.
Here everything is handled by a professional money manager, who is responsible for the allocation of fund’s assets and who tries to produce capital gains for the investors.
Some Benefits of MFs
- Out of all the investment plans, mutual funds are easy to understand. To invest in them you don’t require any special type of knowledge.
- The best thing about mutual funds India is that they are easy to buy. Even the beginners can open their accounts to enjoy its benefits.
- With the help of MFs, you get an opportunity to expand your portfolio of investments. It helps in giving you a broad market exposure by allowing you to invest in different MFs.
- And, most of the investors are capable of affording it. You don’t have to spend a huge amount of money to invest in it.
Some of the best mutual funds for higher returns
As you are searching for investment plans, here are some best mutual funds India for higher returns:
1.Equity Funds– In equity funds you are basically investing in stocks. These funds aim to grow faster than any other type of MF. Though the return is good, in this type of mutual funds the risks are higher. So, you need to think through carefully before investing in them.
2.Money Market Funds– Not only the return in this type of MF is good, but these are also safer than various other types of MFs. You don’t have to worry about the risks in money market funds. But you need to know, though the returns are good, they are lesser than equity funds.
- Balanced Funds– You can also think about balanced funds as these are a combination of equity and fixed-income funds. These funds aim to balance the goal of higher returns against the danger of losing the capital.
4.Fixed-Income Funds– In this fund, the rate of return is fixed along with a fixed date of maturity. It is a good option for those seeking good returns with minimum risk.
You can go for any of these mutual funds in India and enjoy their benefits. You just need to be sure about the one that will meet your requirements and then invest.