Which mutual fund I’m I supposed to invest in? Will I get the anticipated returns on time? Many more questions relating to mutual funds before you invest. You might not find the perfect answer for all these questions but by the end of this article you might find solutions and suggestions which might help you make a wise decision. As always suggested, proper research and knowledge are the key. Also reading the scheme related documents properly before investing is very important.
So how do you decide how much to invest and for what period of time? The answer to this question is the SIP Calculator. As we know there are two ways to invest in mutual funds. One is the Lump Sum investment and the other is the Systematic Investment Plan where you invest in smaller amounts. So, what exactly is this SIP Calculator?
SIP calculator is a source which helps you to calculate your investment plan. It tells you how much you have to invest to reach your expected return within your expected time period of investing. All you have to do is enter how much amount you’re expecting as returns, in how many years into the SIP Calculator and at what rate and there you go the SIP calculator will tell you how much you have to invest every month.
The major mutual fund companies:
Axis Mutual Funds, Kotak Mutual Funds, Nippon India Mutual Funds, HDFC Mutual Funds, SBI Mutual Funds, ICICI Prudential Mutual Funds, Aditya Birla Sunlife Mutual Funds, UTI Mutual Funds, Franklin Templeton Mutual Funds, IDFC Mutual Funds, DSP Mutual Funds, Tata Mutual Funds, L&T Mutual Funds, JM Financial Mutual Funds, Baroda Mutual Funds, Canara Robeco Mutual Funds, HSBC Mutual Funds, IDBI Mutual Funds, Indiabulls Mutual Funds, Motilal Oswal Mutual Funds, BNP Paribas Mutual Funds, Shriram Mutual Funds, Sahara Mutual Funds and many more.
So, these are certain Asset Management Companies which basically pool all the funds from individual investors. They collect the funds and invest them together for better returns for the investors. They invest in both high risk and low risk assets. Hence while choosing your Asset Management Company (AMC) you must check their previous records of their performance. It is important to check the reputation and the credibility of the company because you do not want your money to go in vain.
The funds and their values must be checked thoroughly and their past performance. You need to compare the fees and commission charges of the AMC’s and compare them with other companies and then choose the best option which has good returns with good credibility since the company would perform well. The schemes offered by the companies are very important. You must have a thorough knowledge about the scheme before you invest and make sure it is acknowledged before investing.
The documents must be read thoroughly before signing or giving any acknowledgement. As an investor you must choose only AMC and a Fund Manager which abide by the rules and regulations of SEBI (Securities Exchange Board of India), AMFI (Association of Mutual Funds in India) and RBI (Reserve Bank of India).
People often are in a dilemma before investing in a mutual fund company because they think that these companies are not as reliable as the banks and they would run away with the investor’s money. But that is wrong. The investor must keep in mind that all the mutual fund companies are governed by the Ministry of Finance hence it’s a safe place to invest. So please make wise decisions and start investing for a better and a safer future.