A mutual fund is a professionally managed company that collects money from many investors and invests it in securities such as stocks, bonds and short-term debt, equity or bond funds and money market funds.
Mutual funds are a good investment for investors looking to diversify their portfolio. Instead of betting everything on one company or sector, a mutual fund invests in different stocks to try to minimize portfolio risk.
The term is typically used in the US, Canada and India, while similar structures around the world include the SICAV in Europe and the open-ended investment firm in the UK.
What are the best mutual fund schemes for a five-year period?
We understand what an adequate answer to the above question might be.
Through numerous interactions with investors, we believe that in most cases the hidden and often unexpressed need is to discover the pattern that would provide outstanding returns over the period the investor plans to invest.
In fact, it is extremely difficult even for the investor to predict how long he will remain invested. It is almost impossible to know how the market will behave and which scheme and manager would be able to capitalize the most during a given period.
What is good in one situation may not be good in another. For example, your winter clothes will not be suitable for you during the summers. Similarly, a banana that is good for a growing child can be harmful to his diabetic father.
History is full of examples of many experts who are unable to correctly predict the future. That is why, you should not be influenced by past performance, it is better to look for an appropriate pattern given your unique current situation and future needs.
