Mutual funds are considered to be the safest and secured way for investing money. Traditionally banks were the only mode of saving money. People started moving out of the banks because of the falling rates which is lower than the inflation rate. Mutual funds India was now the best option to invest your money and allow it to grow steadily.
These are not only the easiest way of investing money but it is also very cost efficient. These are basically classified into various categories which mainly include open-end, close-end, large-cap, mid-cap, low-cap, money market, equity and balanced, value, money and no loads.
Securities and Exchange Board of India (SEBI) is the regulatory board of mutual funds India. Some of the leading fund management companies in India are Reliance Mutual, State Bank of India, Kotak Mahindra, Tata, LIC and many others.
When you decide to invest your hard earned money, it is quite obvious for you to look for the best. Finding the best mutual funds in the market may seem to be tough if you do not research well. There is lot many factors which need to be considered before investing your money.
NAV which is known as the Net Value Asset is one of the important factors. It gives you the value of single unit which will be given to the investor. Mutual Fund NAV is calculated per share on daily basis. In simple words it is basically the market value of the securities in a particular scheme. Higher values of NAV will give better returns to the investor.
Fund Manager can change the asset allocation going against what is disclosed in the documents. They are allowed a certain amount of flexibility to alter asset allocation for the benefit of the investor. They make alterations in order to protect your mutual fund NAV.
Investment term is always related to risk. Whether you invest in your business or money in the market, there is a certain amount of risk involved. There are few standard methods of calculating risks. Each of these methods helps to calculate the volatility.
These methods are termed as
• Beta
• Alpha
• Standard Deviation
• Sharpe Ratio
In India these methods of calculating risk are yet to be introduced. It is all about awareness that can help you to play safe and be profitable in the market.
Non-resident Indians can also make investments in India. However, there may be some extra documentation required for such people. People prefer this as against any other type of investments because it offers diversification, liquidity, flexibility and most importantly transparency. You will not find all these aspects in any other form of investment.
The details of every mutual fund company are published on the internet. However, it is always better to go through a self satisfactory research to find out the best in the market.
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