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Choose the safest Investment Options in India!!!MUTUAL FUNDS (MF’s) From today onwards, we are going to tell you the safest investment options in India, which will not only help you to keep your money safe but also multiply it in the long run. In each article, we will tell you about the most trusted investment options available to investors. Today, we are starting with Mutual Funds. WHAT IS MUTUAL FUND? A mutual fund is a professionally managed type of collective investment scheme which invests money in short term securities, bonds, precious metals etc. It takes money from the investors, and then the money is invested by fund managers in those securities which have a track record of optimum return and risk. The main motive behind investing in mutual fund is that it diversifies the risk of collective bearing. Since, it is a collection of different investment securities; therefore it is very much safe from market fluctuations. The central idea is that since all securities do not perform in the same manner, even in tumultuous market conditions, therefore the combined investment remains relatively safe from market fluctuations. Besides this, your mutual fund portfolio is managed by a dedicated portfolio manager who works closely with your portfolio to help your money exponentially in the long run. Portfolio Managers have all the expertise with them as they have access to up-to –the date, market research, that helps them to invest money in the right places. MUTUAL FUND: STILL AN UNDER ESTIMATED MARKET IN INDIA Despite being available in the market for over two decades now with assets under management equaling Rs 7,81,71,152 Lakhs (as of 28 February 2010) (Source: Association of Mutual Funds, India) , less than 10% of Indian households have invested in mutual funds. Ironically, the first mutual fund in India was launched way back in 1963, by Unit Trust of India (UTI). For more than two decades, it was the only mutual fund by which, general public could invest in stock market. UTI went on to become a success story in the history of mutual funds. But even after nearly five decades of inception, mutual funds are still considered as untapped source of investment in India. The biggest problem is, that the people who are investing money in a mutual fund, are investing because these funds are professionally managed and they feel that their hard-earned money will be handled well by specialists. However, there are still a large majority of investors who have not invested in this asset class as they are skeptical of the risks involved. And a large majority don’t know how and where to invest in this sort of investment option. SOME OF THE MAJOR FUND HOUSES IN INDIA THAT YOU CAN INVEST Fortis
Birla Sunlife
Bank of Baroda
HDFC
ING Vysya
ICICI Prudential
SBI Mutual Fund
Tata
Kotak Mahindra
Unit Trust of India
Reliance
IDFC
Franklin Templeton
Sundaram Mutual Fund
Religare Mutual Fund
Principal Mutual Fund
So, I would like to make this clear that, mutual fund are amongst safest investment option in the Indian stock market. The only thing which everyone should kept in the mind that, they should read the RED HEARING PROSPECTUS before investing in any stock. This is advisable, because every mutual fund employs a different set of strategies to grow your money. Some mutual funds are sector specific, like investment, infrastructure, bonds and equities and offer decent returns. One must keep those things in their mind too. I hope this information will help you to understand mutual funds clearly and help you to take wise investment decisions. Want to make your money grow at faster pace? Stay tuned to this blog each week!