A Mutual Fund Calculator calculates the tenure, payment tenure, instalments, return on investment, SIP, etc. it helps you get an approximation of the return you may have at the end of the scheme. The SIPs are too good to resist because it takes the load off you, lets you invest in peace and pieces, and helps you become a disciplined person when it comes to investing. Your good habit of savings will stand you in sound stead. The calculator of sip gives you an idea of the bulk of return you may get after the end of the period. It helps you decide on the bulk of your investment you can make, gives you an exact figure of money invested, and lets you know the number of returns.
A portfolio is a basket of your investments in stocks, bonds, funds and so on. A portfolio is not necessarily limited to these only. It may contain investment in real estate, art and craft, and other such other things too. If you are experienced and smart enough, you can manage your portfolio. You may opt for a financial agent, a broker, an agent, or some other professional who has knowledge in this field and who will help you for a fee. They will manage your basket of investments. It is believed that bonds are usually the core of one’s portfolio apart from the stocks. A portfolio is tested based on its diversification. The more is the better. Now that you know what is a portfolio, there are other important considerations before a portfolio is put together and they are your ability to take the risk, financial plans, objectives of investment, timeline, etc. you should remember the proverb that doesn’t put all your eggs in one basket. This is the key concept of portfolio management. Diversification must be conspicuously present in your portfolio. You may decide on your portfolio depending on your needs for the future and how much courage or experience you have to stay in the financial market. You should also consider taxation matters related to the schemes you have invested in. There are some schemes which offer you handsome tax exemptions and they are going to be quite attractive to any investor. These schemes are generally a bit conservative and they don’t play the hardball. The returns are not as big as the ones you may expect in other schemes that are inclined towards tosses and turns of the stock market but pay a handsome return in the long run. The key to healthy survival is the ability to stay put and wait patiently before you go for redemption.
What is a mutual fund?
A mutual fund is a collection of investments of funds from many investors managed by a fund manager. These funds have their individual goals and they are ideally invested for a term suitable for an expected return. There are many mutual funds and you may have to exercise your choice either by dint of your own experience and expertise or through the assistance of a professional agent. You may invest in the mutual funds online too.
it is advisable that you must have your goals of investment and assess the risk you can tolerate. The choice of the fund depends on these. You should not let yourself be overwhelmed by seemingly endless choices of funds. You must give yourself some time and patience before you finally decide on your investment. This way, you will never go wrong in a hurry. You may be a conservative investor or you may be the one loving the adventure. The ability to withstand risk and wait for a long time are the two important ingredients for investing in these funds. mutual funds do give you much better returns on investment compared to a bank fixed deposit or another financial instrument. The primary objective is capital appreciation. The higher it is, the better for you. If you are for high gains and high risk, you should opt for a fund that is linked to the equities. You have to wait for a long time before you can get some fantastic returns. The horizon of an investment may stretch beyond five years up to 10 or 15 years. There are long-term funds and short-term funds too. There are mutual funds with exit load or without exit load. Some mutual funds have a lock-in period for instance Equity Linked funds.
Mutual fund companies do charge you some fees. These fees you pay to them for the services they provide to you in terms of managing the fund and making sure you get handsome returns. These fund managers are the experienced people and they understand the sectors better than the commoners. There are mutual fund schemes with some load. These loads are the fees that you pay to the company either at the beginning of the scheme or when you withdraw from the plan. This fee serves as a deterrent for you because you may be willing to frequently buy and sell the product. It is not desirable in general terms. You should consider the management expense ratio while choosing a fund. This is the percentage charged for expenses made in managing your fund. if the expense ratio is high, the overall return will be low at the end of the investment period.
Conclusion
It is a good idea to hire a professional agent who will help you pick the right mutual fund for you. There is no good or bad fund, but there are funds which should be kept for a long time and there are some which can be kept for a short period. The choice is yours.
