How To Select A Mutual Fund

An investor should first decide the financial goals, if any, and then proceed further. In case, an investment is to be made for a short period of time, the best option will be a liquid fund. A liquid fund with a high ‘AUM’ and one which gives good service in terms of redemption on the phone or net should be selected.

In case of a longer term investment, equity mutual funds are the best. While selecting a mutual fund a close watch needs to be kept on the asset management charges and the portfolio turnover ratio. Rating of a particular fund is not that important.

The Myth of a Perfect Mutual Fund: There are many new investors that are on the lookout for a perfect mutual fund, one that offers maximum return with minimum risk. But they will be disappointed to know that such a mutual fund does not exist. Every mutual fund is on a risk return continuum. The ones that offer higher returns are by definition more risky.

Choose Funds Which Suit Your Risk Appetite:  It is mandatory for every investor to know their risk appetites before investing into mutual funds. The amount of risk you can take with excess cash is different from the one you can take with your retirement money.  Also as a young individual, you can afford to take more risk with your retirement money than someone who is at the end of his/her career. Ensure that you match the risk with the returns you expect.

Keep An Eye On The Costs: Lastly, choose the funds with least costs. It is well-known facts that firms that charge a lot of fees are not well managed. Good funds will ask for a profit share rather than upfront money.

Finance Enquiry
We at alphajetsusa.com provide analyst ratings or analyst opinions from leading investment banks and rating agencies on investment vehicles. The instruments we cover are exhaustive, including, but not limited to equities, mutual funds, Gold, Silver, commodities, foreign exchange and Exchange Traded Funds (ETFs).

Latest News By The Reporter

Deutsche Bank Securities Reiterates HOLD Rating on James River Coal Co (NASDAQ: JRCC), Target Price Reduced - March 11, 2019

New York, March 12 (alphajetsusa.com) – Analysts at Deutsche Bank Securities reiterate their HOLD rating on the shares of James River Coal Co (NASDAQ: JRCC). The 12-month target price has been reduced to...

Sony Ericsson Mix Walkman: A Preferred Choice of Music Lovers - March 11, 2019

New York, March 12 (alphajetsusa.com) – It’s been more than one and a half year that Sony Ericsson launched Mix Walkman with useful mobile phone deals. The handset has awesomely been...

Deutsche Bank Securities Reiterates HOLD Rating on Con-way Inc (NYSE: CNW) - March 8, 2019

New York, March 8 (alphajetsusa.com) – Analysts at Deutsche Bank Securities reiterate their HOLD rating on the shares of Con-way Inc. (NYSE: CNW). The 12-month target price is set to $36.

In a...

Deutsche Bank Securities Reiterates HOLD Rating on Corporate Executive Board Co (NYSE: CEB) - March 8, 2019

New York, March 8 (alphajetsusa.com) – Analysts at Deutsche Bank Securities reiterate their HOLD rating on the shares of Corporate Executive Board Co (NYSE: CEB). The 12-month target...

Euro Ascends from Three Month Low against Dollar - March 7, 2019

New York, March 7 (alphajetsusa.com) – Prior to the European Central Bank evaluates its benchmark interest rate at a policy meeting on Thursday, the euro ascends from the bottommost in approximately three months...

European Shares Inch Higher - March 7, 2019

New York, March 7 (alphajetsusa.com) – On hopes the European Central Bank may possibly point to future policy easing post its rate-setting meeting soon after, European shares inched higher and the euro...

Deutsche Bank Securities Reiterates BUY Rating on Tractor Supply Company (NASDAQ: TSCO) - March 7, 2019

New York, March 7 (alphajetsusa.com) – Analysts at Deutsche Bank Securities reiterate their BUY rating on the shares of Tractor Supply Company (NASDAQ: TSCO). The 12-month target price is set to...

Deutsche Bank Securities Reiterates HOLD Rating on Xilinx Inc (NASDAQ: XLNX), Target Price Raised - March 7, 2019

New York, March 7 (alphajetsusa.com) – Analysts at Deutsche Bank Securities reiterate their HOLD rating on the shares of Xilinx Inc (NASDAQ: XLNX). The 12-month target price has been raised to some extent...

Deutsche Bank Securities Reiterates BUY Rating on AG Mortgage Investment Trust (NYSE: MITT), Target Price Reduced - March 7, 2019

New York, March 7 (alphajetsusa.com) – Analysts at Deutsche Bank Securities reiterate their BUY rating on the shares of AG Mortgage Investment Trust, Inc (NYSE: MITT). The 12-month target...

Deutsche Bank Securities Reiterates BUY Rating on WhiteHorse Finance (NASDAQ: WHF), Target Price Raised - March 7, 2019

New York, March 7 (alphajetsusa.com) – Analysts at Deutsche Bank Securities reiterate their BUY rating on the shares of WhiteHorse Finance, Inc (NASDAQ: WHF). The 12-month target price has been...

Comments are closed.