I want to invest in mutual funds?

Question

is it right time to invest
and in which class and type of fund

Answer 1

Best Answer - Chosen by Voters

You ask a lot of good questions and to give you a good answer check the URL's below.

Source(s):

http://hubpages.com/hub/bestmutualfunds
http://hubpages.com/hub/Invest-in-mutual…
http://hubpages.com/hub/turbo401k

Answer 2

Mutual Funds in India have a wide range of products which suit various needs of the investor. Hence, there is never a wrong time to invest in a mutual fund scheme as long as one knows what his objectives are and also what the schemes on offer provide.

If you are looking at a long term investment (say 5+ years) equity schemes are best suited and within equity schemes, there are various options available.
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Fundu Vishy - Your 'Mutual' Friend
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Source(s):

http://blog.powermf.com/2009/11/types-of…
http://blog.powermf.com/2009/10/six-area…

Answer 3

Mutual funds are long-term investments, and since nobody knows what the market will do in the short-term, it is NEVER the "wrong" time to invest. As long as you're investing for the long-term (5 years or more), "now" is always the best time to invest.

Asking which is the best mutual fund is very much like asking which is the best car. Everybody's situation, needs and preferences are different, so the answer will be different for everyone.

Before investing in ANY mutual fund, you should know the answer to the following questions:

- When will I need the money? If you'll be needing it soon (less than 5 years), you should NOT invest in a mutual fund - stick with safe investments like CD's and Treasuries.
- Do I have all of my debts paid off AND an emergency savings fund? These should be priorities (except for mortgage debt - that has tax advantages), and your emergency savings (6 months of living expenses) should be kept in "safe" investments like those named above.
- What is my risk tolerance? In all investments - and particularly in mutual funds - there is a tradeoff between short-term risk and long-term reward. The "safest" funds (other than money market) are bond funds, which are generally more stable in the short term, but have historically only returned about 5-6% on average. Stock funds are more volatile in the short term, but have historically returned between 9-10% on average.

One factor you should keep a close eye on is costs. All mutual funds make their money through management fees, which generally range from 0.75% to 1.25% annually. In addition, if you buy your funds through a broker or investment advisor, you will pay some sort of sales charge ("no load" funds allow you to bypass the middle man and buy directly from the fund company, avoiding sales charges).

My favorite fund families are Vanguard, T. Rowe Price, and Fidelity. All have a wide variety of good (no-load) funds to choose from, and generally have low expenses. Check out their websites, and call the toll-free number of whichever one makes the best impression on you.

I hope that helps. Good luck!

Source(s):

Former stock broker, MBA in Finance, and 20+ years investing experience.

Answer 4

Wait for some time because the market is bearish and it is expected it will go down in near future.Whenever the market makes a bottom and trades in consolidation phase that will be right time to enter in the market through reputed mutual funds after watching their Performance of past.

Answer 5

They are sold with the false promise that even if you are small investor, you can ivest in shares. Actually you are only investing in the mutual fund company, you are not a shareholder in any company.

Once you understand this, mutual funds or OK.

All the best.

End

Answer 6

Have you considered buying ETF's instead of mutual funds? The advantage of doing that is enormous. Mutual Funds exist for one reason and that is for the fund manager to take a cut of your cash whether he/she is successful or not.

Answer 7

In India, this is perfect time to invest in MF. Go for equity diversified funds like SBI Magnum Contra or HDFC Growth. But strictly do SIP and for minimum 3 yrs.
BEST OF LUCK.

Source(s):

Personal Experience

Answer 8

Right now you cannot go wrong on an S&P 500 Index Fund. You can start with as little as $100 and add as little as $1.00. The operating expenses are very low and the returns are very good. Very few investments will beat them over time.

Answer 9

hai,
diversified equity fund