What is the most popular mutual fund?
Bond funds are the most common type of fixed-income mutual funds, where (as the name suggests) investors are paid a fixed amount back on their initial investment.
Ticker | Name | 5-year return (%) |
---|---|---|
STSEX | BlackRock Exchange BlackRock | 16.27% |
USBOX | Pear Tree Quality Ordinary | 16.13% |
FGLGX | Fidelity Series Large Cap Stock | 16.08% |
PRCOX | T. Rowe Price U.S. Equity Research | 16% |
- LIC MF Flexi Cap Fund Direct Plan Growth Option. ...
- Mirae Asset Flexi Cap Fund Direct Growth. ...
- Axis Flexi Cap Fund Direct Growth. ...
- Canara Robeco Flexi Cap Fund Direct Plan Growth Option. ...
- Sundaram Flexi Cap Fund Direct Growth. ...
- Navi Flexi Cap Fund Direct Growth. ...
- PGIM India Flexi Cap Fund Direct Growth.
Rank | Symbol | Fund Name |
---|---|---|
1 | VSMPX | Vanguard Total Stock Market Index Fund;Institutional Plus |
2 | FXAIX | Fidelity 500 Index Fund |
3 | VFIAX | Vanguard 500 Index Fund;Admiral |
4 | VTSAX | Vanguard Total Stock Market Index Fund;Admiral |
Bond funds are the most common type of fixed-income mutual funds, where (as the name suggests) investors are paid a fixed amount back on their initial investment.
BlackRock Exchange Portfolio (STSEX)
Easily one of the top-rated examples of the safest mutual funds, the BlackRock Exchange Portfolio (MUTF:STSEX) seeks long-term growth of capital and consequent long-term growth of income, per its prospectus.
Name | Sub-Category | 5Y CAGR (%) |
---|---|---|
Kotak Gilt Fund | Gilt – Short & Mid Term Fund | 8.67 |
Kotak Gilt Fund-PF&Trust | Gilt – Short & Mid Term Fund | 8.67 |
Edelweiss Government Securities Fund | Gilt – Short & Mid Term Fund | 8.65 |
Bandhan G-Sec-Constant Maturity Plan | Gilt – Long Term Fund | 8.62 |
Here are 5 mutual fund schemes with highest 3-year returns along with their expense ratios: Quant Small Cap Fund(G) tops the chart with over 39% returns followed by Quant Mid Cap Fund(G), Nippon India Small Cap Fund(G), Quant Flexi Cap Fund(G) and Motilal Oswal Midcap Fund-Reg(G) in the same pecking order.
- Quant Mid Cap Fund Growth Option Direct Plan. ...
- Nippon India Small Cap Fund - Direct Plan - Growth Plan. ...
- HSBC Small Cap Fund Fund Direct Growth. ...
- Tata Small Cap Fund Direct Growth. ...
- ICICI Prudential Dividend Yield Equity Fund Direct Growth. ...
- SBI Contra Fund Direct Growth. ...
- HDFC Small Cap Fund-Direct Growth Option.
ETFs can be more tax-efficient than actively managed funds due to their lower turnover and fewer transactions that produce capital gains. ETFs are bought and sold on an exchange throughout the day while mutual funds can be bought or sold only once a day at the latest closing price.
Are mutual funds 100% safe?
Mutual funds are largely a safe investment, seen as being a good way for investors to diversify with minimal risk. But there are circ*mstances in which a mutual fund is not a good choice for a market participant, especially when it comes to fees.
Highlights: Average Mutual Fund Return Statistics
The average mutual fund return for a balanced mutual fund for the last 10 years as of 2021 is nearly 9-10%. In 2019, the average return on mutual funds was 16.3%. As of 2020, the average five-year return for large-cap mutual funds was around 11.9%.
| Ticker | ETF Name |
---|---|---|
1 | GBTC | Grayscale Bitcoin Trust |
2 | SMH | VanEck Semiconductors ETF |
3 | XLK | Technology Select Sector SPDR Fund |
4 | IXN | iShares Global Tech ETF |
- Understand the Expense Ratio. The expense ratio is the fee paid by the investor to the fund house.
- Learn about one-time charges. ...
- Know about entry load. ...
- Be aware of exit load. ...
- Understand load. ...
- Account fee. ...
- Management fee. ...
- Recurring fee.
A mutual fund's level of risk is determined by the investments it makes. Typically, the risk will increase as the potential returns do. For instance, an equity fund is typically riskier than a fixed income fund because stocks are typically riskier than bonds.
In India, mutual funds investing in small and mid-cap stocks are generally considered high risk. These funds invest in high potential small and mid-cap stocks, which can be volatile but may generate high returns.
Disadvantages include high fees, tax inefficiency, poor trade execution, and the potential for management abuses.
- High fees. Mutual funds have expenses, typically ranging between 0.50% to 1%, which pay for management and other costs to operate the fund. ...
- Market risk. Just as with stocks and bonds, mutual funds generally have market risk, meaning that prices can fluctuate up and down. ...
- Manager risk. ...
- Tax inefficiency.
What Is Downside Risk? Downside risk is an estimation of a security's potential loss in value if market conditions precipitate a decline in that security's price. Depending on the measure used, downside risk explains a worst-case scenario for an investment and indicates how much the investor stands to lose.
Mutual funds require minimum investments of anywhere from $1,000 to $5,000, unlike stocks and ETFs, where the minimum investment is one share. Mutual funds trade only once a day after the markets close. Stocks and ETFs can be traded at any point during the trading day.
How much money should I invest in mutual funds?
To determine how much to invest in Mutual Funds monthly, subtract your monthly expenses including contributions to your emergency fund and short-term goals from your monthly income. The remainder is what you can allocate to investments.
While it is true that one can invest at any age, it is also valid that those starting early have an undue advantage thanks to compounding. For those in the 18-25 age bracket, the mantra is clear: the earlier, the better. With time as their most valuable asset, young investors have a significant advantage.
The other funds in the list were Tata Small Cap Fund, Bandhan Small Cap Fund, HDFC Mid Cap Opportunities Fund, and Canara Robeco Small Cap Fund. These schemes gave 30.73%, 30.13%, 30.10%, and 30% returns respectively.
Treasuries are generally considered"risk-free" since the federal government guarantees them and has never (yet) defaulted. These government bonds are often best for investors seeking a safe haven for their money, particularly during volatile market periods. They offer high liquidity due to an active secondary market.
In the category of market-linked securities, mutual funds are a relatively safe investment. There are risks involved but those can be ascertained by conducting proper due diligence.