Why invest in a new mutual fund? A new mutual fund has no history. Nobody knows whether the fund will be able to give the returns it promised. Why risk your hard earned money on a new fund rather than investing in a fund which has a proven track record. Many old mutual fund schemes have a vast performance data. Analyzing this data many analyst have given advice on their websites about the best performing mutual funds.
So, how should we select a fund from the ocean of so many mutual funds? And the answer is that we need to do a small research on the internet. Some of the online web sites that give information about mutual funds are Value Research Online, Mutual Funds India, Easy MF, and many more to come. Just type any company name on a search engine and you will get their home page link instantly. Visit the site and search for equity diversified mutual funds. Check their one year past performance. Most of the websites display the top three or top five best performing funds on every sector. You have to select the category according to your needs.
Finally, when you have selected and read about the funds, you may want to invest on some of these mutual funds. Now a days, you have the option of investing online over the internet by paying through your banks website. Be sure to pay through a trusted website rather than fall prey to any fraud websites stealing you personal information, etc. ICICI Securities Limited offers investing online via their website ICICI Direct. For this you need to have a Demat A/c with them. You can invest a lump sum amount at one go or you also have the option to invest systematically through SIP. SIP stands for Systematic Investment Plan.
If you are not comfortable investing online over the internet then you are always welcome to do it in the old fashioned way. Just visit any bank and ask for an investment advisor. Every bank has got one. They can also provide you with a financial planner and a portfolio manager. Not only that, now you can also invest in mutual funds from your local post office.
Investing directly into stocks is always a risky business. It is always wise to play safe in an unsafe market. Although mutual funds never promise guaranteed returns from the stock markets. However, these investments prove to do much better than other investment instruments.
