Mutual fund objectives
To invest properly in a mutual fund, you need to understand the types of mutual funds that are available to you. These include:
- Equity: Also known as growth funds, these invest exclusively in the stocks of domestic companies listed on the stock exchanges. These are categorized as high-risk funds.
- Money market: These are mainly meant for investors looking at short-term profits and easy liquidity. These funds are invested in money market instruments such as Treasury bills (T-Bills), Commercial Papers (CPs), Repurchase Agreements (Repo) and government securities. These are categorised as low-risk funds.
- Debt: These are also called income funds and provide fixed returns by investing exclusively in low-risk fixed income securities. Debt funds are typically low-risk funds.
- Hybrid or balanced: These funds invest in both fixed income securities (debt) and stocks (equities), thereby offering a balanced portfolio to investors. Mutual funds are also hyphenated on the basis of closed or open loop structures.
- Close-ended: These funds have fixed maturities and cannot be easily withdrawn or closed before maturity.
- Open-ended: You can withdraw the investment at any point of time and get refunds within a week. More and more mutual funds are offering open-ended fund options nowadays.
Top 10 Tax Saving Mutual Funds to invest in India for 2016 or Best 10 ELSS Mutual Funds in india for 2016
1. BNP Paribas Long Term Equity Fund
2. Axis Tax Saver Fund
3. Franklin India TaxShield
4. ICICI Prudential Long Term Equity Fund
5. IDFC Tax Advantage (ELSS) Fund
6. Birla Sun Life Tax Relief 96
7. DSP BlackRock Tax Saver Fund
8. Reliance Tax Saver (ELSS) Fund
9. Religare Tax Plan
10. Birla Sun Life Tax Plan
Invest in Best Performing 2016 Tax Saver Mutual Funds Online
For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call
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