ChristianLedesma

1 Why Liquid Funds Are The Best Investment Option Mutual India 2018 P

1 why liquid funds are the best investment option mutual india 2018 p value research moneycontrol in hindi

Category : Mutual Fund.
Topic : Liquid mutual funds quora. Author : Tupper Parsons.
Posted : Wed, Feb 20th 2019 14:53 PM.
Format : jpg/jpeg.

A mutual fund is the most popular form of a pooled investment known today. They are designed for people who want to have their money professionally managed at a fairly reasonable cost. In addition to professional management, they give an investor convenience, diversification, record keeping, tax reporting, and safekeeping of securities.

What's Popular?
Buying And Selling Mutual Funds
Buying and selling mutual funds

Low Cost Mutual Fund Companies
Low cost mutual fund companies

A common mistake for novice investors is to select a mutual based solely on its past performance record. Past performance may not be a food indicator of future performance, given possible changes in the global or domestic economy, the markets, or specific sectors the fund invests in. While past performance is a useful tool and one item to consider, it should not be the sole criteria. In many cases last years winners are next years underperformers.

A mutual fund is the most popular form of a pooled investment known today. They are designed for people who want to have their money professionally managed at a fairly reasonable cost. In addition to professional management, they give an investor convenience, diversification, record keeping, tax reporting, and safekeeping of securities.

Mutual funds are divided into two categories: closed-end funds and open-end funds. Closed-end funds have a fixed number of shares issued to the public. If you want to purchase a piece of the fund, you have to purchase an existing share from a shareholder that is selling.

Some specialty funds are going to be higher, but for the most part you should try to buy funds that are under 1%. Funds are required by law to produce a document called a prospectus, which no one ever reads, that tells you important information about the fund. Fortunately, Morningstar reports most of this same information in a much easier to understand way. The best mutual funds will keep these internal costs to a minimum.

More Liquid Mutual Funds Best Samples
Tumbnail size of fixed deposits fd vs liquid fund why you should not invest in mutual funds india 2018 maxresde value research moneycontrol hindi

Fixed deposits fd vs liquid fund why you should not invest in mutual funds india 2018 maxresde

Tumbnail size of the success and dangers of liquid alternative mutual funds wsj meaning in hindi if ab948 9u 201504021 value research moneycontrol

The success and dangers of liquid alternative mutual funds wsj meaning in hindi if ab948 liquid 9u 201504021

Tumbnail size of mutual funds which fund category is best for me liquid meaning in hindi value research moneycontrol

Mutual funds which fund category is best for me liquid meaning in hindi

Tumbnail size of money market mutual funds or liquid in india vrk100 an usa 1549387 value research moneycontrol hindi

Money market mutual funds or liquid in india vrk100 an usa 1549387

Tumbnail size of swaraj wealth on twitter invest in liquid funds and fulfill your mutual hindi dsbc suwoa value research moneycontrol

Swaraj wealth on twitter invest in liquid funds and fulfill your mutual hindi dsbc suwoa

Tumbnail size of easy ways to invest in india short term investments very liquid mutual funds value res research moneycontrol hindi

Easy ways to invest in india short term investments very liquid mutual funds value res

Tumbnail size of savings bank account a big opportunity liquid mutual fund funds value research moneycontrol in hindi

Savings bank account a big opportunity liquid mutual fund

Tumbnail size of cut off time mutual funds what is in liquid and india 2018 maxresde value research moneycontrol hindi

Cut off time mutual funds what is in liquid and india 2018 maxresde

Tumbnail size of liquid mutual fund w3gyan in funds moneyco value research moneycontrol hindi

Liquid mutual fund w3gyan in funds moneyco

Tumbnail size of liquid funds why retail investors are shifting to mutual value research moneycontrol in hindi

Liquid funds why retail investors are shifting to mutual value research

Tumbnail size of nps vs mutual funds a retirement planning perspective liquid value research moneycontrol in hindi

Nps vs mutual funds a retirement planning perspective liquid

Tumbnail size of an alternative to liquid alternatives mutual funds india 20 value research moneycontrol in hindi

An alternative to liquid alternatives mutual funds india 20

Tumbnail size of dont let your money to sleep into saving account or current liquid mutual funds quora 18926b693090a3707742f4f4224 value research moneycontrol in hindi

Dont let your money to sleep into saving account or current liquid mutual funds quora 18926b693090a3707742f4f4224

Tumbnail size of how to invest your way one million dollars a full guide money liquid mutual funds value research mil gra moneycontrol in hindi

How to invest your way one million dollars a full guide money liquid mutual funds value research mil gra

Tumbnail size of hdfc mf garners half of fresh liquid fund flows the economic times mutual funds value research moneycontrol in hindi

Hdfc mf garners half of fresh liquid fund flows the economic times mutual funds

Tumbnail size of mypf 9222017 bonds and mutual funds chapter ppt download liquid quora advantagesofmutual value research moneycontrol in hindi

Mypf 9222017 bonds and mutual funds chapter ppt download liquid quora advantagesofmutual

Tumbnail size of mutual funds liquid schemes under sebi scanner the economic times moneycontrol value research in hindi

Mutual funds liquid schemes under sebi scanner the economic times moneycontrol

Tumbnail size of mutual funds icon liquid competitive stock vector royalty quora or pricing return on investment loan inst value research moneycontrol in hindi

Mutual funds icon liquid competitive stock vector royalty quora or pricing return on investment loan inst

Tumbnail size of 3 takeaways out of the ltcg 2018 budget announcements jama switch to d liquid mutual funds value research moneycontrol in hindi

3 takeaways out of the ltcg 2018 budget announcements jama switch to d

Tumbnail size of 1 why liquid funds are the best investment option mutual india 2018 p value research moneycontrol in hindi

1 why liquid funds are the best investment option mutual india 2018 p

Tumbnail size of alternative mutual funds outperform hedge in 2014 liquid india 2018 alternati value research moneycontrol hindi

Alternative mutual funds outperform hedge in 2014 liquid india 2018 alternati

Tumbnail size of what is liquid mutua mutual funds value research moneycontrol in hindi

What is liquid mutua

Tumbnail size of sbi mutual fund july 2017 hybrid scheme debt small midcap liquid funds value research moneycontrol in hindi

Sbi mutual fund july 2017 hybrid scheme debt small midcap liquid funds

Tumbnail size of ceeol article detail liquid mutual funds meaning in hindi getissuecoverimageidpicture 2016  value research moneycontrol

Ceeol article detail liquid mutual funds meaning in hindi getissuecoverimageidpicture 2016

Tumbnail size of liquid funds a terrific alternative to your low interest savings mutual vs fd igfundsindia0218nov2013final003 131125002906 phpapp01 thumbn value research moneycontrol in hindi

Liquid funds a terrific alternative to your low interest savings mutual vs fd igfundsindia0218nov2013final003 131125002906 phpapp01 thumbn

Tumbnail size of budget 2018 heres your quick guide to mutual fund tax changes liquid funds india finance value research moneycontrol in hindi

Budget 2018 heres your quick guide to mutual fund tax changes liquid funds india finance

Tumbnail size of mutual funds icon liquid hedge stock vector royalty free usa or fund term and conditions investment strategy fi value research moneycontrol in hindi

Mutual funds icon liquid hedge stock vector royalty free usa or fund term and conditions investment strategy fi

Tumbnail size of what is money market liquid mutual fund hindi youtube maxresde funds value research moneycontrol in

What is money market liquid mutual fund hindi youtube maxresde

Tumbnail size of what is the difference between equity mf and debt quora liquid mutual funds vs fd main qimg 937f0317b4a6b9b31011143e87c value research moneycontrol in hindi

What is the difference between equity mf and debt quora liquid mutual funds vs fd main qimg 937f0317b4a6b9b31011143e87c

Tumbnail size of swaraj wealth on twitter invest in liquid funds and attain sizable mutual india 2018 dslqzcgxga value research moneycontrol hindi

Swaraj wealth on twitter invest in liquid funds and attain sizable mutual india 2018 dslqzcgxga

Tumbnail size of liquid mutual funds archives best to invest online value research 2018 117 moneycontrol in hindi

Liquid mutual funds archives best to invest online value research 2018 117

Tumbnail size of alternative reality x and y advisors inc liquid mutual funds value research numberofliquidalternativemutualfunds moneycontrol in hindi

Alternative reality x and y advisors inc liquid mutual funds value research numberofliquidalternativemutualfunds

Tumbnail size of portfolio manager wealth creation by mutual fund liquid funds value researc research moneycontrol in hindi

Portfolio manager wealth creation by mutual fund liquid funds value researc

Tumbnail size of let your idle money work for you invest in liquid funds and get mutual value research moneycontrol hindi

Let your idle money work for you invest in liquid funds and get mutual

Tumbnail size of inside aqrs mutual funds success story bloomberg liquid quora value research moneycontrol in hindi

Inside aqrs mutual funds success story bloomberg liquid quora

Tumbnail size of ask et mutual funds can investments in liquid go negative hin value research moneycontrol hindi

Ask et mutual funds can investments in liquid go negative hin

Tumbnail size of mutual fund 101 everything you need to know about liquid funds usa featured value research moneycontrol in hindi

Mutual fund 101 everything you need to know about liquid funds usa featured

Tumbnail size of use liquid funds from mutual as a alternative to chit moneycontrol maxresde value research in hindi

Use liquid funds from mutual as a alternative to chit moneycontrol maxresde

Tumbnail size of icici prudential liquid etf nfo mutual fund funds in hindi maxresde value research moneycontrol

Icici prudential liquid etf nfo mutual fund funds in hindi maxresde

Tumbnail size of 5 no volatility only surety with this liquid mutual funds in india 2018 p value research moneycontrol hindi

5 no volatility only surety with this liquid mutual funds in india 2018 p

Tumbnail size of ppfas mutual fund on twitter parag parikh long term equity is liquid funds in hindi dmyvq3fu0a value research moneycontrol

Ppfas mutual fund on twitter parag parikh long term equity is liquid funds in hindi dmyvq3fu0a

Tumbnail size of know your debt investments how to make the most of liquid funds mutual india 2018 17 05 20 value research moneycontrol in hindi

Know your debt investments how to make the most of liquid funds mutual india 2018 17 05 20

Tumbnail size of what is liquidity meaning definition liquid mutual funds in hindi napkin finance e15069060 value research moneycontrol

What is liquidity meaning definition liquid mutual funds in hindi napkin finance e15069060

Tumbnail size of mutual fund funds investing liquid meaning in hindi 1547019 value research moneycontrol

Mutual fund funds investing liquid meaning in hindi 1547019

Tumbnail size of what are different types of mutual funds keep investing liquid meaning in hindi mf type value research moneycontrol

What are different types of mutual funds keep investing liquid meaning in hindi mf type

Tumbnail size of yes liquid fund wealth maxi open ended debt sch mutual funds value research moneycontrol in hindi

Yes liquid fund wealth maxi open ended debt sch

Tumbnail size of 16 09 nyt investors stick with liquid alts mutual funds that india 2018 mimic value research moneycontrol in hindi
16 09 nyt investors stick with liquid alts mutual funds that india 2018 mimic
Tumbnail size of liquid funds back onto india investors menu as ilfs pain fades mutual in hindi value research moneycontrol
Liquid funds back onto india investors menu as ilfs pain fades mutual in hindi

Another point to consider when investing in mutual funds is taxes. When a fund manager sells a stock or bond within the basket for a gain, IRS regulations provide that this gain be taxed to the shareholders of the fund. This means that a fund with a high turnover (a fund that buys and sells a lot within the basket each year) could have a great deal of gains that will be taxable to the shareholders. The tax gains are passed through to the shareholders who own the fund as of a specific date each year. This means that someone buying the fund just before the taxable distribution date, will pay the tax on the gain for the entire year, even though they did not own the fund all year. For more tax efficient funds, look for funds that have a low turnover rate.

When investing in mutual funds (or any investments), it is important to be diversified (see my blog titled The Truth About Diversification). Sometimes, owning a few different mutual funds may give the appearance of being well diversified, but on closer inspection, if the funds you own, each have major holdings in the same stocks, you may not be diversified at all.

How do mutual funds make money? Mutual funds make money in several ways. The main way is from internal fees that are called expense ratios. Expense ratio sounds a lot better than FEES, right? But it is the same thing. It is a percentage of the funds assets that are taken out every day, and it is how the mutual fund company stays in business. You never see these fees come out, but they definitely affect your annual returns. You want to try to make sure your expense ratios are around 1% or less per year.

A mutual fund is the most popular form of a pooled investment known today. They are designed for people who want to have their money professionally managed at a fairly reasonable cost. In addition to professional management, they give an investor convenience, diversification, record keeping, tax reporting, and safekeeping of securities.

See More Liquid Mutual Funds Inspirations
Compare Mutual Funds Side By Side

Compare mutual funds side by side

Moneycontrol Mutual Fund

Moneycontrol mutual fund

Mutual Funds Calculation Example

Mutual funds calculation example

Compounding Mutual Funds

Compounding mutual funds

Mutual Fund Portfolio Analysis Tools

Mutual fund portfolio analysis tools

Icici Prudential Mutual Fund Login

Icici prudential mutual fund login

Best Performing Mutual Fund

Best performing mutual fund

Top Performing Mutual Funds India

Top performing mutual funds india

Edward Jones Mutual Funds List

Edward jones mutual funds list

India Mutual Fund

India mutual fund

Mutual Fund Advice
Mutual fund advice

Best Td Ameritrade Mutual Funds
Best td ameritrade mutual funds

The value of the fund is based on the value of the assets it holds. As the stocks or bonds within the fund increase in value, the fund increases in value. Conversely, as the stocks or bonds within the fund decrease in value, the fund also decreases in value. Mutual funds only trade at the end of the day based on their net asset value (NAV). To determine the NAV at the end of the trading day, the mutual fund company looks at all of the assets that are in the basket, determines their value and divides that number by the total number of outstanding shares in the fund.

Alpha - measures the performance of a fund on a risk-adjusted basis. Alpha calculates a risk factor relative to a fund, and then compares that risk-adjusted performance to a benchmark (such as the S&P 500). A number is then assigned that reflects how that fund performs, relative to the amount of risk the investment is exposed to. For example, a positive alpha of 1.0 means the fund has outperformed its benchmark index by 1%, or a negative alpha of -1.0 would indicate an underperformance compared to the benchmark of 1%.

Mutual funds are managed by a portfolio manager, or in some cases, by a team of portfolio managers. The success of a fund by an individual fund manager may be largely dictated by his performance. That is important to know, because a fund with a good track record historically, may perform differently in the future if the fund manager changes. It is always prudent to review the tenure of the fund manager in concert with past performance.