Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

By the term ‘Mutual Funds’, we mean the money pooled out through the contribution of many investors who intend to save and make money through their investments. The corpus thus created with the investment of these individuals is then invested in different categories namely debt funds, liquid assets and others. The individuals investing in mutual funds have to share the profits and losses equally in proportion to the value of their contribution to the corpus of the mutual funds. Here are the different kinds of mutual funds in India.<br /><br /><strong><keyword id="6354820" type="DEFINITION" weightage="20" keywordseo="mutual-fund">Mutual fund</keyword> types based on asset class<br /></strong><br /><strong>Equity funds<br /></strong><br />Equity funds are those that are invested in stocks or shares of different companies. Since these investments can provide higher results, they are also called as high risk funds.<br /><br /><strong>Debt funds</strong><br /><br />Debt funds are those that are invested in debt such as government bonds, fixed income assets and company debentures. These are considered as safe investment options since they provide fixed retruns to the investors. <br /><br /><strong>Money market funds</strong><br /><br />Money market funds are those that are invested in liquid instruments. Some examples to this type are CPs and T-bills. These are also deemed as safe investment options since you will get an immediate return on your investment though the returns might be moderate.<br /><br /><strong>Balanced or hybrid funds</strong><br /><br />Hybrid funds also called as balanced funds are invested in different kinds of asset classes. When the proportion of debts are found lower than the equity or when the equity is found lower than the proportion of debts, this kinds of funds enable striking a balance between risks and returns. <br /><br /><strong>Sector funds<br /></strong><br />Sector funds are those kinds of investments in which the investor chooses to invest in a particular sector or the division of the market. For example, infrastructure fund investors invest in sectors confined to the infrastructure. They might also choose the investment instruments offered by the infrastructure companies. Returns on sector funds investments are directly related to how the given sector performs. The risk factor with regard to these investments vary between sectors.<br /><strong><br />Index funds</strong><br /><br />Index funds are investment tools that represent a specific index on the stock exchange for the purpose of monitoring the returns and how the index moves. In other words, it is like purchasing shares from the BSE Sensex. <br /><strong><br />Tax-saving funds<br /></strong><br />Tax-saving funds are those that are invested predominantly in equity shares. Tax-saving funds enable an investor to claim the tax deductions under the income tax act. The risk factors that are involved in such kinds of investments are very high. Also, in case these funds perform well, higher returns are possible. The tax saving aspect is one of the major attractions connected with these kinds of investments. Those that are willing to take high risks for the sake of inviting higher returns prefer this model. <br /><br /><strong>Funds of funds<br /></strong><br />Funds of funds are those that are invested in other mutual funds. The returns on such investments depend on how the target funds perform on the whole. <br />

Different types of Mutual Funds that you can buy in India

<br />Over the past few years, mutual fund schemes in India have significantly grown. As a result, we see the best performance funds keep changing. In India, systems like CRISIL, Morning Star, and ICRA evaluate the performance of <keyword id="6357979" type="UNKNOWN" weightage="20" keywordseo="mutual-funds">mutual funds</keyword> on the basis of the returns they assure, standard deviation, qualitative and quantitative aspects and other factors. When these findings are summed up, we get the list of top performing <keyword id="864677" type="PERSON" weightage="20" keywordseo="Mutual-Funds-in-India">mutual funds in India</keyword> for a given financial year. This list can guide the investors in choosing the right kind of avenues to invest in the domain of mutual funds. Here we discuss the <keyword id="35457" type="PERSON" weightage="20" keywordseo="Best-Mutual-Funds">best mutual funds</keyword> for FY 2019-20.<br /><br /><table style="width: 279pt;"> </colgroup>  <tbody><tr> <td class="xl65" style="height:15.0pt;width:162pt">Mutual Fund Name</td> <td class="xl65" style="border-left-width: initial; border-left-style: none; width: 117pt;">12-month change (%)</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Mirae Asset Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">58.7</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Invesco Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">49.9</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">AXIS Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">23.4</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Canara Robeco Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">20.5</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">SBI Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">20.4</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Kotak Mahindra Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">16.1</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Tata Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">11.8</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">IDFC Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">11.6</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">PRINCIPAL Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">3.9</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">UTI Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">2.9</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">ICICI Prudential Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">2.7</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">HDFC Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">1</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Reliance Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">0.2</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">L&amp;T Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-7.1</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Motilal Oswal Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-7.7</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">BNP Paribas Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-8.1</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Sundaram Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-8.4</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Aditya Birla Sun Life Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-9.9</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Franklin Templeton Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-12.1</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">DSP Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-13.3</td> </tr></tbody></table>Source: August'19  (Motilal Oswal - Indian Mutual Fund Tracker)<br /><br />Nifty changed by -5.6% during the same period.<br /><br /><strong>The background<br /></strong><br />Following the market correction in 2018, the valuations in several categories have reached highly attractive levels. This has opened up new opportunities for the investors and the fund managers. India’s top performing mutual funds are all set to assure strong returns to the investors in 2019-20. <br /><br /><strong>Axis Blue Chip Fund</strong><br /><br />Incepted on January 5, 2010, the AUM of this large cap fund is Rs. 4,802 crore. The outperformance of this fund over the recent past is impressing the industry experts during a time when a large number of actively managed funds failed during last year. As of May 2019, the 5 year CAGR of Axis Bluechip Fund is 15.16%. This can offer a solid platform for a very powerful mutual fund portfolio in 2019. <br /><br /><strong>Kotak Standard Multicap Fund</strong><br /><br />Considered under the category of Equity Multicap fund, the AUM of Kotak Standard Multicap Fund incepted on September 11, 2009, is Rs. 23,881 crore. It has delivered a return of 19.48% over the past five years. This fund also presents immense growth prospects in the mid cap space. Fairly diversified across 56 sticks, the investors feel they are taken care very well when they invest in it.<br /><br /><strong>HDFC Small Cap Fund</strong><br /><br />Found under the category of small cap funds and incepted on April 3, 2008, the AUM of HDFC small cap fund is Rs. 7,660 crore. Despite the severe test of the times in 2018, the fund has managed to provide the investors a 5 year CAGR at 20.83%. About 57% of this funds has been invested in small cap companies while 36% is invested in mid-cap space leaving the remaining 6% to large caps.<br /><br /><strong>Franklin India Prima Fund</strong><br /><br />Incepted on December 1, 1993, this fund has completed 25 years in the stock market. Categorized as mid cap fund, the AUM is Rs. 7,116 crore. It could deliver a highly amazing 19.52 CAGR. This will mean that if a sum of Rs 1 lakh was invested in during its inception, it will value at Rs 90.70 lacs now. <br /><br /><strong>Axis Long Term Equity Fund</strong><br /><br />Incepted on December 29, 2009 and categorized as ELSS tax saving fund, the AUM of this fund is Rs. 18,852 crore. This fund is considered as a legend in the arena of tax saving schemes. For a long time, it has continuously outperformed till it reached a point when a majority of investors always had a portion of their tax saving investment in this fund. <br /><br /><br /><strong>See Also:<a data-type="tilCustomLink">Top Mutual Funds to invest this Diwali for long-term prosperity of your Family</a></strong>

Top performing mutual funds in India 2019

<ul class="summary-list"><li>ETFs (exchange-traded funds) and <keyword id="6357979" type="UNKNOWN" weightage="60" keywordseo="mutual-funds">mutual funds</keyword> offer cost-efficient ways to diversify, but they differ in how they’re taxed, traded, and managed.</li><li>ETFs are typically passively managed and trade like stocks, with lower fees and minimums than mutual funds.</li><li>Mutual funds are professionally managed investment portfolios that trade once a day and are preferred by 401(k) plans.</li></ul><p>ETFs, or exchange-traded funds, and mutual funds have a lot in common. </p><p>Both investment products pool investors' money into a collection of assets — typically stocks, but can be other assets like bonds, real estate, and commodities. Geared towards individuals, both offer a low-cost, diversified way to invest. </p><p>But ETFs and mutual funds also hold important differences, especially in the way they're traded and managed, and what they charge and how they're taxed. </p><h2>What is a mutual fund?</h2><p>A <a href="https://markets.businessinsider.com/funds" target="_blank" rel="noopener">mutual fund</a> is a group of assets like stocks or bonds that you can purchase by pooling money with other investors. They are run by a professional portfolio manager who selects the fund based on a published investing strategy, so all the investors (and regulatory bodies like the SEC) know what they're getting when they invest. </p><p>As of 2019, there are nearly <a href="https://www.statista.com/topics/1441/mutual-funds/#:~:text=In%20the%20United%20States%2C%20there,the%20United%20States%20in%202018." target="_blank" rel="noopener">8,000 US-based mutual funds</a> with total assets worth a staggering $21.3 trillion, according to Statista.</p><p>Mutual funds offer plenty of benefits, from their affordability to the fact that professionals do the research for you. They also help diversify risk: You buy a fund with many different assets to avoid getting burned if any individual asset loses its value. Mutual funds are intended to be long-term, buy-and-hold investments.</p><h2>What is an <keyword id="6357062" type="DEFINITION" weightage="60" keywordseo="ETF">ETF</keyword>?</h2><p>Like a mutual fund, <a href="https://www.businessinsider.com/personal-finance/what-is-an-etf-exchange-traded-fund" target="_blank" rel="noopener">an ETF is an investment vehicle</a> that combines money from many investors into a pool to invest in stocks, bonds, and other assets. </p><p>Developed in the mid-'90s, ETFs are younger than mutual funds, but their number has exploded over the last 10 years. As of 2019, there are <a href="https://www.statista.com/statistics/350525/number-etfs-usa/" target="_blank" rel="noopener">over 2,000 ETFs</a> based in the US, with approximately $3.4 trillion in assets. </p><p>Unlike mutual funds, however, ETFs trade daily on stock exchanges — which means that they can be turned over early and often, though they are also suited to a long-term investment strategy.</p><p>If the aim of mutual funds is to beat the market, the aim of ETFs is often to follow the market. The majority of ETFs are index funds, meaning their portfolios mirror the holdings of a particular segment of the stock, bond, or commodity markets, be it a general one like the S&amp;P 500, or a highly specific one, like biotech. </p><h2>The main differences between ETFs and mutual funds</h2><p>The diversification that ETFs offer makes them very similar to mutual funds. But when figuring out which is right for you, there are a few key differences worth knowing.</p><h3>1. ETFs and mutual funds are sold differently</h3><p>If you have a brokerage account, either at a traditional full-priced broker, a discount broker, or an online trading app, you can buy and sell ETFs. You may have to pay broker fees per transaction, which can add up if you're buying small quantities often. </p><p>In contrast, you buy a mutual fund either through a brokerage or through the investment company that owns and manages it. Time was when these investment companies wouldn't offer funds from other firms, only their own (does a Nike store sell Reeboks?). But over the last 10 years, as they've evolved into "financial services providers," some of the larger players — think <keyword id="174755" type="COMPANY" weightage="60" keywordseo="Vanguard">Vanguard</keyword> or Fidelity — have started offering other fund families, too.</p><h3>2. ETFs and mutual funds are priced differently</h3><p>Mutual funds set their prices only once a day after the markets have closed. The price of a mutual fund share is technically known as the net asset value (NAV) since it represents the combined worth of the entire portfolio, not just a particular holding. </p><p><a href="https://markets.businessinsider.com/etfs" target="_blank" rel="noopener">ETF share prices </a>are like any stock share price: continually changing throughout the day, based on buying and selling in the market. So they can be more volatile than mutual funds.</p><h3>3. Mutual funds are actively managed, while ETFs are typically passively managed</h3><p>For the last couple of decades, mutual funds have offered active money management: financial pros — fund managers, backed by analysts — who pick and choose investments, trying to deliver market-beating returns. And ETFs have been the vehicle of choice for passive, auto-pilot investing — following an index or other group of assets, on the grounds that nothing outperforms the market overall. </p><p>Recently that dichotomy has changed somewhat: You can find many actively managed ETFs, and if you want passively managed mutual funds, you can find those too.</p><p>However, ETFs remain the darlings of robo-advisers and automated trading platforms. If you have an online investment account, like one from Betterment, Merrill Edge, or Vanguard Digital Advisor, odds are it's investing your money in index ETFs.</p><h3>4. ETFs are cheaper than mutual funds</h3><p>Mutual funds are generally more expensive than ETFs. They require more human power to operate, which means they charge larger fees to pay their managers and commissions to pay salespeople. </p><p>While they're spending less money on marketing than they have in the past, many funds still charge sales commissions called "loads." Other fees include redemption fees, exchange fees, account fees, and management fees. </p><p>For example, in regards to equity mutual funds, the average <keyword id="162921" type="PERSON" weightage="60" keywordseo="expense-ratio">expense ratio</keyword> — as these fees are collectively called — is 1.24%, <a href="https://www.ici.org/pdf/per26-05.pdf" target="_blank" rel="noopener">according to the Investment Company Institute</a> (ICI). All these fees add up and cut into the total return of the fund.</p><p>With ETFs the only commission you pay is to your broker, and since 2018 many brokers have waived transaction fees and commissions.</p><p>Because they're so often passively managed, ETFs generally have lower expense ratios, as low as 0.03% The average is 0.49%, <a href="https://www.ici.org/pdf/per26-01.pdf" target="_blank" rel="noopener">according to the ICI</a>.</p><h3>5. Mutual funds have higher minimums</h3><p>Mutual funds generally demand a minimum investment, ranging from a few hundred dollars to four — or even five figures. </p><p>With ETFs, there is no minimum investment, and the price is whatever a single share costs on the exchange at that time.</p><h3>6. ETFs have tax advantages </h3><p>ETFs are a little more tax-friendly than mutual funds, which also brings down the total cost of owning them. When a mutual fund manager sells an asset for a profit, the holders of the fund are liable for a portion of the capital gain on that sale, even if they still own the fund itself. </p><p>Because the buying and selling that regulates the price of the ETF is done by outside parties ("authorized participants" in investment lingo) and not the fund itself, holders of ETF shares are not liable for capital gains unless they personally sell their shares at a profit.</p><h3>7. Retirement plans prefer mutual funds </h3><p>When you have an employer-sponsored 401(k) or a 403(b) plan account, you're restricted to the funds offered by the plan manager. Those offerings overwhelmingly remain mutual funds. </p><p>Although they technically can offer ETFs, many plans shy away from them due to compliance issues: Actively traded ETFs can come perilously close to being considered speculative investments, which are frowned on for retirement accounts. This is particularly true of 403(b) plans, which have more strict rules about what kinds of investments they can make.</p><h3>8. You can unload ETFs faster</h3><p>Mutual funds being priced only once a day, at the end of the day, makes it hard to get your money out quickly — because you see the price of its underlying assets falling, for example. </p><p>In contrast, you can sell an ETF any time during the trading day, like any stock. Of course, because they're so easy to buy and sell, you could be more likely to make a bad, emotionally driven move. </p><h2>The financial takeaway</h2><p>While they're both geared to individual investors, ETFs have become popular since the turn of the 21<sup>st</sup> century as a low-cost alternative to mutual funds. ETFs charge lower fees and have no minimum investment (other than the price of a single share).</p><p>Still, outnumbering ETFs as they do, mutual funds offer more variety, and a chance to outperform the market. </p><p>For investors who are saving for retirement, especially in an employee-sponsored 401(k) plan, mutual funds may be the best investment. For DIY investors, especially those who prefer to operate via an app or online, ETFs may offer the edge.</p><h2>Related Coverage in <a href="https://www.businessinsider.com/investing-reference" target="_blank" rel="noopener">Investing</a>:</h2><h3><a href="https://www.businessinsider.com/personal-finance/how-to-invest-in-mutual-funds-step-by-step-guide" target="_blank" rel="noopener">How to invest in mutual funds and grow your money for retirement, a bucket-list trip, or any other long-term goal</a></h3><h3><a href="https://www.businessinsider.com/personal-finance/what-is-an-etf-exchange-traded-fund" target="_blank" rel="noopener">An ETF is a type of investment that's easy to purchase and requires little management</a></h3><h3><a href="https://www.businessinsider.com/personal-finance/how-to-invest-in-index-funds-explained" target="_blank" rel="noopener">How to invest in index funds to build long-term wealth</a></h3><h3><a href="https://www.businessinsider.com/personal-finance/warren-buffett-recommends-index-funds-for-most-investors" target="_blank" rel="noopener">Warren Buffett thinks index funds are the best way for everyday investors to grow their money</a></h3><h3><a href="https://www.businessinsider.com/personal-finance/how-to-invest-in-a-401k-for-retirement" target="_blank" rel="noopener">Experts say your office 401(k) is the best place to start investing. Here's how it works.</a></h3>

ETFs and mutual funds can instantly diversify your portfolio, but they differ in how they're traded, managed and taxed. Here's what you should know.

We’re days away from the end of the financial year. There’s little time left to plan investments and save taxes. If you’ve clicked through to this article, it’s likely that you’ve fallen short on your tax-saving goals.<br />
<br />
You’re probably looking for a quick fix. You need to make an investment, save your taxes under Section 80 C, generate handsome returns—and you need to do all this without getting out of bed.<br />
<br /> Worry not. Here’s an option for you: buy some <keyword id="103549" type="CITY" weightage="20" keywordseo="ELSS">ELSS</keyword> mutual funds. <br />
<br />
<strong>Introduction</strong><br /> Equity Linked <keyword id="25450" type="UNKNOWN" weightage="20" keywordseo="savings">Savings</keyword> Schemes – ELSS – are diversified equity mutual funds. Your capital is invested in a variety of equity options in the stock market, allowing you to earn market-linked returns on your investments.<br />
<br />
<strong>Where To Buy</strong><br />
Mutual funds can be bought from fund house branches, bank branches, agents, and distributors. Since you’re looking for a quick way out of your quagmire, you should go online. In this, you have two options: buy funds directly from the fund house website, or buy them from an online distributor.<br />
<br />
<strong>What To Buy </strong><br />
There’s a plethora of ELSS mutual funds, and it’s not easy to decide which one to pick. Most fund houses offer at least one ELSS fund. There are plenty of mutual fund research and analysis websites that offer data on ELSS funds. You can access this data, look at parameters such as long-term returns, research rankings, management fees, investment objectives, etc. Ideally, you should consult experts before making this investment.<br />
<br />
<strong>How Much To Buy</strong><br />
Like all mutual funds, ELSS funds can be bought as SIPs or lump sums. Since you’re looking to do a one-time investment to urgently save tax, you should be aware of your investment shortfall and invest up to that limit. You’re allowed to invest to save up to Rs. 1.5 lakh under Section 80 C through one or many of the investment options available, including ELSS funds.<br />
<br />
<strong>Risks</strong><br />
ELSS funds are equity investments. Which means that your investment is subject to market risks and you should read all scheme documents carefully before investing. As markets rise and fall, so will your investment value.<br />
<br />
<strong>Returns</strong><br />
That said, over the long term, ELSS funds have out-performed most small savings scheme such as PPF. As per the CRISIL - AMFI ELSS Fund Performance Index in December 2016, the ELSS fund category as a whole has generated annual returns of 3.35% in the last year, 16.64% in the preceding three years, 17.71% in five years, and 10.61% in 10 years. In case you find the markets tanking, stay calm, remain invested, and reap long-term, tax-free returns. <br />
<br />
<strong>Lock-In</strong><br />
ELSS funds have a lock-in of three years. It means you cannot redeem units whose tenure has been less than three years. This has one significant benefit, which is…<br />
<br />
<strong><keyword id="6383566" type="PERSON" weightage="20" keywordseo="Taxation">Taxation</keyword></strong><br />
Returns from ELSS funds are tax-free. ELSS funds are equity investments. Equity investments with a tenure longer than one year qualify as long-term investments, and therefore become exempt from capital gains tax. Since ELSS funds have a three-year lock-in, they are automatically tax-exempt.<br />
<br />
<br />
(The writer is CEO, BankBazaar.com)

Forgot to save taxes? Don’t panic. Here’s an investment option for you

<p><strong><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span><a href="http://www.youtube.com/watch?v=hashPaU7Dpk">YouTube / ETRADE Commercials</a></span></p></div><p></p></div></div></strong></p><ul><li><strong>Investing is super important, but not everyone knows how or where to begin. </strong></li><li><strong>There's an entire investing ecosystem that gives new investors access to financial markets. </strong></li><li><strong>Here's everything you need to know to get started. </strong><strong> </strong></li></ul><p>That comfy retirement you've always dreamed of will require a sizeable nest egg, so it's wise to start investing early. </p><p>Nobody can guarantee an investment will make money, of course. But over time, betting your dollars on stocks and bonds should fund the retirement lifestyle you're hoping for. </p><p>And if you're wondering how to get started, Business Insider is here to help.</p><p>There are entire institutions that exist almost solely for the purpose of giving people access to financial markets in a way that enables them to invest responsibly, and with advice from the experts. </p><h2><strong>So you've decided you want to make your own investment decisions</strong></h2><p>Let's say you've decided you want to invest $100 in the stock of Company A. That's where brokers come in. A broker is <span>a financial agent who executes trades for a client. Of course, the broker has to get paid. Usually, there's a small fee per trade, and sometimes a flat fee paid yearly.</span></p><p><span>An investor contacts his or her broker in order to buy or sell shares or bonds of a specific company. </span><span>Sometimes the broker will try to buy at the lowest price possible, or sell for the highest possible price. That depends on the type of order the investor requests. On buy or sell orders that do not request negotiation, the broker will transact at market price.<strong> </strong></span></p><p><span>Brokers can also advise the client on which securities to buy or sell, and when to do so. This is called a "full-service broker." </span>There are now "discount brokers," which are usually online and cheaper than full-service ones. Some examples: <a href="https://www.schwab.com/?src=nay&amp;keywordid=kwd-15485351&amp;s_kwcid=AL!5158!3!113513333180!e!!g!!charles%20schwab&amp;ef_id=Wm9W9AAAAsTR3kh3:20180706191949:s">Charles Schwab</a>, <a href="https://us.etrade.com/what-we-offer/our-accounts/?sr_id=BR&amp;mp_id=41378075937&amp;ch_id=p&amp;gclid=EAIaIQobChMIoJvCm5mL3AIVkouzCh1PJAiCEAAYASAAEgLDw_D_BwE&amp;gclsrc=aw.ds">Etrade,</a> <a href="https://www.tdameritrade.com/why-td-ameritrade.page?a=pqm&amp;cid=PSBRA&amp;cid=PSBRA&amp;ef_id=Wm9W9AAAAsTR3kh3:20180706192228:s&amp;s_kwcid=AL!2521!3!171348293246!e!!g!!td%2520ameritrade&amp;referrer=https%253A%252F%252Fwww.google.com%252F">TD Ameritrade</a>.</p><p><span>New and online-only brokerage platforms like </span><a href="https://robinhood.com/" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url?hl=en&amp;q=https://robinhood.com/&amp;source=gmail&amp;ust=1530984629740000&amp;usg=AFQjCNE-t_naDCarK1Pvv2H_x4So7StYTg">Robinhood</a> and Stash, cost next-to-nothing and are largely targeted towards younger, less wealthy investors. </p><h2><strong>Or maybe you've decided you don't have the time or knowledge to choose your own investments</strong></h2><p>That's where funds come in to the mix. Funds pool together money from lots of different investors. There are equity funds (those that buy stocks), fixed-income funds (those that buy bonds), and lots in between.</p><p>Now, you can either invest in mutual funds, or something called an exchange-traded fund. </p><p>Mutual funds pool together money from tons of investors, for fund managers to actively manage. Those managers pick the securities they think will help them beat the market. In this scenario, the investor buys shares in a mutual fund, and the percentage of the fund an investor owns is the percentage of the gains he or she is entitled to.</p><p>For example, if investors pool together $100 into a fund, and investor A puts in $10 - he or she is entitled to 10% of the gains. Every fund charges each investor a fee that is a certain percentage of the total assets held by the fund (assets under management, or AUM). That rate is the same for every investor. </p><p>Some examples of companies that have mutual funds: <a href="https://www.fidelity.com/go/experience/welcome?s_tnt=100067:1:0&amp;imm_pid=700000001008875&amp;immid=100447&amp;imm_eid=e6543813693&amp;gclid=EAIaIQobChMIvqCn6ZqL3AIV0JCfCh34-w-jEAAYASAAEgJZDvD_BwE&amp;gclsrc=aw.ds">Fidelity</a>, <a href="https://investor.vanguard.com/home/?WT.srch=1&amp;cmpgn=PS:RE">Vanguard Group</a>, <a href="https://www.ssga.com/resources/universal/index.html?WT.mc_id=ps_brand_us_ssga_text_jun18">State Street Global Advisors</a>. </p><p>There are also exchange-traded funds, or ETFs.  These are similar to mutual fund, but there is no fund manager actively picking securities. Instead, the ETF tracks an index made up of a group of securities, and fund aims to deliver returns matching those of the index. </p><p><span>Some examples: <a href="http://markets.businessinsider.com/etfs/spdr-s&amp;p-500-etf-trust">Spider S&amp;P 500 ETF</a>, <a href="http://markets.businessinsider.com/etfs/invesco-qqq-trust-series-1">Invesco QQQ</a>, <a href="http://markets.businessinsider.com/etfs/spdr-s&amp;p-oil-&amp;-gas-exploration-&amp;-production-etf">Spider S&amp;P Oil &amp; Gas Exploration Production ETF</a>. </span></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/300-million-world-cup-stadium-is-nearly-abandoned-2018-6">Brazil's empty $300 million World Cup stadium</a></h3>        <div>                    </div>    </div>

Here's how to get started investing

<p class="headline-regular financial-disclaimer">Our experts answer readers' investing questions and write unbiased product reviews (<a href="https://www.businessinsider.com/personal-finance/investing-rating-methodology" class="not-content-link" target="_blank">here's how we assess investing products</a>). Paid non-client promotion: In some cases, we receive a commission from <a href="https://www.businessinsider.com/personal-finance/our-partners" class="not-content-link" target="_blank">our partners</a>. Our opinions are always our own.</p><ul class="summary-list"><li>A mutual fund is a portfolio of investments that pools money from investors to purchase securities. </li><li>The majority of mutual funds are professionally managed with the aim to outperform the market.</li></ul><p>A mutual fund is a type of investment vehicle that pools money from many investors to purchase stocks, <a href="https://www.businessinsider.com/personal-finance/what-is-a-bond">bonds</a>, or other securities. Investors who mutually contribute to the fund company become part owners of the fund's portfolio and the income it generates or loses. </p><p>You can invest in mutual funds through a broker or investment platform. The <a href="https://www.businessinsider.com/personal-finance/best-online-brokerage">best online brokerages</a> offer low minimums, account flexibility, investment tools and resources, and access to human advisors for personalized guidance and advice. </p><p>Here's what to know about mutual funds, including how they work, what to watch out for, and how to get started investing in them. </p><h2><strong>How do mutual funds work?</strong></h2><p>Generally, mutual funds are actively managed by a fund manager who controls when to buy and sell securities to maximize returns and minimize losses. When you buy a mutual fund, you're buying partial ownership of the fund and its assets, meaning its entire portfolio of investments.</p><p>This differs from buying an individual <a href="https://www.businessinsider.com/personal-finance/what-is-stock">stock</a>, where you buy partial ownership directly in a company and manage any subsequent moves yourself (unless you have a financial manager). </p><p>The price of a mutual fund is determined by its net asset value (NAV), which takes all of the portfolio's securities into account. It is found by dividing the total value of the fund's assets (cash and securities) by the number of the fund's outstanding shares. </p><p>Since a mutual fund's portfolio consists of many securities that change price throughout the day, the NAV is calculated at the end of the market day. Because of this, mutual funds trade only once per day, after the <a href="https://www.businessinsider.com/personal-finance/what-is-the-stock-market">stock market</a> closes.</p><p><strong>Example:</strong> Let's say you want to put $2,000 toward a mutual fund. If the fund's NAV is $20, you're able to purchase 100 shares — not counting fees. Along with other investors' contributions, that $2,000 would then be used by the fund manager to make trades with the goal of outperforming the market.</p><h2><strong>Mutual fund fees</strong></h2><p>You should be aware that mutual funds come with structured fees for active management, which eat into your total profits. A mutual fund will label fees into two main categories:</p><ul><li><strong>Annual fund operating expenses: </strong>A fund's total annual operating expenses include management and transaction fees, which are expressed collectively as the fund's <a href="https://www.businessinsider.com/personal-finance/what-is-expense-ratio">expense ratio</a>. While relatively small, expense ratios can significantly affect a fund's return, especially over time.</li></ul><ul><li><strong>Shareholder fees: </strong>A fund can also come with shareholder fees, which cover commissions regarding buying and selling the fund. Most mutual funds will have a sales charge called a "load," which can be a flat fee or a commission, and occur when you purchase or sell your shares back to the fund. </li></ul><p>If you're in the market for a mutual fund, its fees are an important factor to consider. You can find all associated fees outlined in detail in the fund's <a href="https://www.businessinsider.com/personal-finance/prospectus">prospectus</a>.</p><h2><strong>How to make money investing in mutual funds</strong></h2><p>You can make money on mutual funds in a few different ways:</p><ul><li><a href="https://www.businessinsider.com/personal-finance/what-is-a-dividend"><strong>Dividend payments </strong></a><strong>:</strong> Similar to stocks, a mutual fund can pay out dividends to its investors periodically. They can choose to receive these payouts as cash or to reinvest them in your account.</li><li><a href="https://www.businessinsider.com/personal-finance/what-are-capital-gains"><strong>Capital gains</strong></a><strong> :</strong> When an investor sells a fund at a profit, that's known as a capital gain. This gain gets passed off to a fund's shareholders annually.</li><li><strong>NAV:</strong> If your mutual fund's value increases, the price to purchase its shares will also increase. This benefits you if you choose to sell your shares since you would sell at a gain. </li></ul><p><strong>Quick tip: </strong>When looking at NAV, you want to follow how a fund's value changes over time, rather than comparing one fund's value to another in a single day.</p><h2><strong>Are mutual funds a good investment?</strong></h2><p>Compared to buying individual stocks or bonds, investing in mutual funds is a more effective way to diversify your investment portfolio.</p><p>"Mutual funds are an easy and well-established way to give everyday investors diversification," says Michael Iachini, CFP and head of manager research for <a href="https://www.schwab.com/investment-advice" target="_blank" rel="noopener">Charles Schwab Investment Advisory</a>. "They are well established since the 1920s, and they have a track record of working for investors."</p><p>If you're looking to invest in mutual funds, just make sure to keep an eye on costs, since actively managed mutual funds can eat into your profits with expense ratios and commissions. Beginner investors may be better off choosing <a href="https://www.businessinsider.com/personal-finance/what-is-an-index-fund">index funds</a> over actively managed funds to snag earnings without a big price tag. </p><h2><strong>Pros and cons of mutual funds</strong></h2><p>Before you add mutual funds to your portfolio, there are advantages and disadvantages that can help you decide whether they are the right fit for your investment style and goals.</p><table style="border-collapse: collapse; width: 100%; height: 287px;" border="1"><tbody><tr style="height: 22px;"><td style="width: 37.2078%; height: 22px;">Pros</td><td style="width: 37.7922%;">Cons</td></tr><tr style="height: 265px;"><td style="font-weight: normal; width: 37.2078%;"><ul><li>Offer simplicity and peace of mind with professional fund managers.</li><li>Typically require a small minimum investment to buy in.</li><li>Add diversification to your portfolio with various asset classes and industries</li><li>Ability to invest with exact dollar amounts versus buying shares of stocks at fluctuating prices.</li></ul></td><td style="width: 37.7922%; height: 265px;"><ul><li>Professional management fees can be costly. </li><li>Not insured by the Federal Deposit Insurance Corporation (<a href="https://www.businessinsider.com/personal-finance/fdic">FDIC</a>), so there is the risk of losing money.</li><li>A chance of dilution decreasing the worth of your shares when a successful mutual fund grows too big.</li><li>You have no control over a fund manager's decisions, which can trigger tax implications like capital gains that add to your taxable income.</li><li>Since mutual funds trade after markets close, they don't allow for trading during the day and taking immediate advantage of market movements.</li></ul></td></tr></tbody></table><h2><strong>Types of mutual funds</strong></h2><p>Mutual funds aren't homogenous. They are classified into many different types, including the securities they invest in and the investment goals they seek to achieve. Here are seven of the major types:</p><h3><strong>1. Equity funds</strong></h3><p>Equity funds invest mostly in stocks and are often categorized by company size and <a href="https://www.businessinsider.com/personal-finance/what-is-market-cap">market capitalization</a>. Equity funds can be labeled as growth, value, or blended funds. Growth funds hold shares of companies with potential to outperform the overall market, while value funds are filled with stocks of seemingly undervalued companies. Blended funds mix both growth and value stocks.</p><p>"Remember there are more than 10,000 equity mutual funds, yet there are only 2,800 stocks that trade on the New York Stock Exchange," says Clark Kendall, president and CEO of <a href="https://kendallcapital.com/" target="_blank" rel="noopener">Kendall Capital</a>. "Equity mutual funds do a great job of slicing and dicing the equity markets however you would like to have your market served to you."</p><p><strong>Quick tip: </strong>Over the long term, equity funds can generate a much higher yield than other mutual funds. Though stock investments can be volatile, equity funds offer more portfolio diversity than many of the other mutual fund types and individual stock investments.</p><h3><strong>2. Bond funds</strong></h3><p>Bond funds pool investors' money to primarily purchase bonds, from short- to long-term maturities. Some funds include a range of securities including government bonds, corporate bonds, and mortgage-backed securities, while others may focus on a specific part of the bond market.</p><p>Bond funds provide quick diversification without buying various bonds individually. Many funds also distribute dividends each month, which you can reinvest. </p><ul><li><strong>Corporate bonds:</strong> issued by corporations that mature over a period of time and pay interest if you hold the bond to maturity</li><li><strong>Government bonds: </strong>issued by the US government, including <a href="https://www.businessinsider.com/personal-finance/treasury-bonds">Treasury securities</a>, with fully taxable interest from a federal level and tax-free from a state level</li></ul><ul><li><strong>Municipal bonds: </strong>issued by local governments and other authorities to pay for projects such as projects such as toll roads, stadiums, and hospitals; interest is exempt from federal taxation and in many cases state and local taxation as well</li></ul><p><strong>Quick tip: </strong>If you invest in municipal bonds, the interest you earn is exempt from federal taxation, and if you buy the bonds in the state where you live they are also exempt from state taxation.</p><h3><strong>3. Money market funds</strong></h3><p>Money market funds are fixed-income mutual funds that invest in short-term debt securities with low credit risk. These funds aim to provide <a href="https://www.businessinsider.com/personal-finance/what-is-liquidity">liquidity</a>, maintain a stable share price, and distribute regular income earned on its securities to its investors. </p><p>Money market funds are categorized as government, prime, or tax-exempt, depending on the securities held within the fund. Securities often invested in money market funds include short-term US Treasury securities, federal agency notes, <a href="https://www.businessinsider.com/personal-finance/certificate-of-deposit">certificates of deposit</a>, corporate commercial paper, and municipal agency obligations. </p><p><strong>Quick tip: </strong>Money market funds are typically not a good place to keep your money for very long. Over time the low yield of the fund may not match the rate of inflation, management fees, or tax liabilities.</p><h3><strong>4. Balanced funds</strong></h3><p>Balanced mutual funds invest in both bonds and stocks, so you get the best of both worlds with steady income and investment growth. Also known as asset allocation funds, these funds typically stick to their original asset mix. If any changes are made, the funds are automatically rebalanced to bring them back to the original allocation.</p><h3><strong>5. Index funds</strong></h3><p>Index funds are a type of mutual fund designed to mirror the performance of a particular market index, like the S&amp;P 500 or the Dow Jones Industrial Average. Because index funds are built to match the performance of the target index, they are passively managed investments. This means they require less research and trading from the fund manager, so there are fewer fees and expenses. </p><p>It's important to note that while an index fund can be structured as a mutual fund, it can also be an exchange-traded fund (<a href="https://www.businessinsider.com/personal-finance/what-is-an-etf">ETF</a>). Index funds are especially favored by investors because they are a low-risk, low-maintenance, low-cost way to see steady returns over time. </p><h3>6. Specialty funds</h3><p>Specialty funds, or sector funds, concentrate on securities within a specific industry or market sector, such as real estate, technology, or healthcare. Examples of specialty funds include real estate mutual funds, which invests in <a href="https://www.businessinsider.com/personal-finance/what-is-a-reit">REITs</a> and other real estate-related investments. Because specialty funds are focused on specific sectors like health care and technology, they aren't diverse so you'll want to mix these in with other types of funds and assets. </p><p>A more recent trend in mutual funds has been "<a href="https://www.businessinsider.com/personal-finance/what-is-impact-investing">impact investing.</a>" They target companies or projects committed to specific social or environmental causes.<br /><br />These funds cater to investors who are increasingly looking to direct their money to companies that are making positive social or environmental impacts in the world. While many perform well, the return on impact investments may be lower than more traditional investments.</p><h3>7. Target-date funds</h3><p><a href="https://www.businessinsider.com/personal-finance/target-date-funds">Target-date funds</a> operate with a specific goal date in mind. These funds automatically rebalance the asset mix within their portfolio over time and become more risk-averse as the target date nears. Target-date funds are popular for retirement savings since you can set your retirement date as the target, and let the fund adjust for you.</p><h3><strong>8. Hybrid funds</strong></h3><p>Hybrid funds invest in two or more asset classes whereas other mutual funds tend to invest in a single asset class. Hybrid funds often combine stocks and bonds, but may even include <a href="https://www.businessinsider.com/personal-finance/what-are-commodities">commodities</a> like raw materials or precious metals.</p><p>The goal of a hybrid fund is to reduce risk by further diversifying the investors' portfolio, even more so than other mutual fund types. Further, hybrid funds can offer an investor a combination of income generation, capital gains, and NAV. </p><h2>Mutual funds — Frequently asked questions (FAQs)</h2><h3 class="faq-question">What are the 4 types of mutual funds?</h3><p class="faq-answer">There are multiple types of mutual funds, such as equity funds, bond funds, money market funds, balanced funds, index funds, specialty funds, and target-date funds. Different kinds of mutual funds invest in different securities for varying financial goals. </p><h3 class="faq-question">Do mutual funds pay interest?</h3><p class="faq-answer">Yes, depending on the type of mutual fund you invest in, you may earn interest on certain assets in your portfolio. These funds often invest in fixed-income securities. Mutual funds that can earn interest are money market funds, bond funds, and balanced funds. </p><h3 class="faq-question">Are mutual funds a safe investment?</h3><p class="faq-answer">Mutual funds are generally considered a safe investment. Compared to individual stocks, investing in mutual funds helps diversify your investment portfolio and lower your overall market volatility. But keep in mind that mutual funds are not risk-free. Just like an investment, there is a level of risk involved and no guarantee that you're investment will turn a profit. </p><h2><strong>How to start investing in mutual funds</strong></h2><p>You likely have already invested in mutual funds if you have a <a href="https://www.businessinsider.com/what-is-a-401k">401(k)</a> retirement account. But if you want to start investing in mutual funds outside of employer-sponsored accounts, you can buy and sell them through an online broker with a brokerage account. </p><p>You can also buy mutual funds directly from the company that created the fund, like Vanguard - Product Name Only or Fidelity Investments - Product Name Only, although that limits your options to whatever they offer. If you need more guidance with your investments, you could consider working with a financial advisor or broker.</p><p>Each fund and each brokerage account may require a specific minimum investment amount to get started. "You typically don't need a lot of money in a mutual fund," says Iachini. "At least have $100 saved up. Once you've chosen a fund, look at its asset class, expense ratio, investment objective, whether that's income, growth, or intentionally trying to be conservative, and who is managing the fund." </p><p>It helps to ask yourself a few questions to help narrow down your options. How involved in rebalancing your asset allocation do you want to be? What are you saving for? What do you value? For example, if you're saving for retirement, you'll want to look to target-date funds. Or perhaps you want to look for <a href="https://www.businessinsider.com/personal-finance/esg-investing">ESG</a> funds that invest in socially conscious companies.</p>

Mutual funds: Definition, types, and how to invest

Gold has always been the safest option for investors. Over the last few years, gold has always reported a significant growth rate in prices. However, during the recent periods, gold has witnessed a fumble in prices. The pace in which gold prices has stumbled down during the recent times show us that we need to take a careful decision while choosing to invest in gold.<br /><br /><strong>The bottom line</strong><br /><br />Due to the trends noticed in gold prices, <keyword id="6357979" type="UNKNOWN" weightage="20" keywordseo="mutual-funds">mutual funds</keyword> has once again come up in the chart as a preferred form of investment. One of the advantages of investing in mutual funds is that they mitigate risks by distributing the investment across a wide spectrum of industries. At the same time, unlike investing in gold, investing in mutual funds requires a great deal of planning and vigilance on the part of the investor. Here we discuss the various pros and cons of investing in gold and mutual funds to learn how to make the right decision.<br /><br /><strong>Risks involved</strong><br /><br />Transporting and storing gold carries the risks of theft and burglary. However, this can be mitigated while investing in gold ETFs. Mutual funds do not present such risks. Mutual funds can be bought and sold safely online. <br /><br /><strong>Trading</strong><br /><br />For buying and selling gold, you do not pay any charges. There is no documentation involved and there are no intermediaries required. The process of buying and selling mutual funds involves intermediaries, entry and exit charges and documentation.<br /><br />Gold investment cannot encash the highs that happen in the market. It does not earn anything to the investor periodically and it does not pay any dividends. Mutual funds ride both the bull and bear to fetch substantial returns to the investor.<br /><br /><strong>Variations</strong><br /><br />There are no variants in gold accepting the quality standards like 24K gold and 22K gold. 24K gold is always expensive than 22K gold. Mutual funds have a lot of variants based on the kind of funds you choose. Hence it is very much essential that you choose the right option that will suit your investment hunger. <br /><br /><strong>Liquidity</strong><br /><br />Gold investment is characterized by a high degree of liquidity. You can trade gold anywhere and anytime. Mutual funds also carry a considerable degree of liquidity as you can encash your mutual fund at the present Net Asset Value. However, you can sell them only in particular segments of the market. It is not possible to sell mutual funds to anyone and anywhere.<br /><br /><strong>Market knowledge</strong><br /><br />You need not be vigilant or knowledgeable about the market when you invest in gold. Even a layman can invest in gold and get substantial returns if the investment is done over the long term. Mutual fund investment will demand that you remain on your toes all the time. If you want to make profits through mutual funds, you must be smart to respond to the trends in the money market.<br /><br /><strong>Stability</strong><br /><br />Gold cannot resist the fluctuations in the market. Irrespective of the temporary fluctuations, the value of gold tends to go up in the long run. Mutual fund is a dynamic product that always rides on the highs and lows of the market and hence it can never be viewed as a stable avenue for investing. <br /><br /><strong>Conclusion</strong><br /><br />Neither gold nor mutual funds is a clear winner. The decision to choose either gold or mutual funds must take into account the factors discussed above so that your investment serves its intended purpose. <br /><br /><br /><br />

You Searched For "buy mutual funds online" and got 7 results

Different types of Mutual Funds that you can buy in India

BI India Bureau

Top performing mutual funds in India 2019

BI India Bureau

ETFs and mutual funds can instantly diversify your portfolio, but they differ in how they're traded, managed and taxed. Here's what you should know.

Will Kenton

Forgot to save taxes? Don’t panic. Here’s an investment option for you

Adhil Shetty

Here's how to get started investing

Jacob Sonenshine

Mutual funds: Definition, types, and how to invest

Lauren Perez,Tessa Campbell

Mutual Funds Vs Gold: which is better for Investment

BI India Bureau

Popular Keywords

Buying Guides