Mutual Funds is industry is growing at fast phase due to awareness regaring stock market people starting their SIP in to mutual fund and direct stocks.
Mutual fund is best suited for less risky peoples means mutual fund invest into stocks but chances of losing money is very less due to diversify.
What is Mutual Funds ?
Mutual Fund is a type of fund that is professionally manage by manager and this fund manager are highly skills. Mutual Fund take money from many investors and create a basket of stocks and invest into them and make it less risky or very aggressive that depend on types of investor.
Mutual Fund having edge over direct stock market investor, investing into direct stocks taking time and needed more money to invest and very high risk on the other hand mutual fund manager manage your money and take some charge from your as a expense ratio.
Types of Mutual Funds
There are many types of mutual funds available in market but mainly there are 5 category which is best and suitable for everyone.
- Equity Fund
- Debt Fund
- Index Fund
- Hybrid Fund
- Sectorial Fund
1)Equity Fund :- Equity Fund invest all your money into direct stocks and very high risk in that but it also give investors high returns. This types of mutual fund perform very well in bull market but fail to deliver high returns in recession.
2) Debt Fund :- This mutual fund is very safe and have less risk because investor’s money goes into government securities, bond, etc.
3) Index Fund :- Index Fund is best investment for those who have less time and not having detail knowledge about stock market then they can start SIP in index fund.
4) Hybrid Fund :- Hybrid Fund are those funds that invest their money into both stocks and bonds means Equity and Debt.
5) Sectorial Fund :- Sector specific funds means if you want to invest your money into IT stocks then all IT stocks of your country are available in this fund.
Best Mutual Fund to Buy Now in USA
1)Schwab U.S. Large-Cap Growth Index Fund (SWLGX) :- SWLGX is a good option for investors who want to track the performance of the large-cap growth segment of the U.S. stock market.
The fund has a long history of performance, and it has a low expense ratio, which means that more of your investment goes towards buying stocks.
If you are looking for a low-cost way to invest in the large-cap growth segment of the U.S. stock market, SWLGX is a good option to consider.
2) Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) :- It is a mutual fund that seeks to track the performance of the CRSP US Total Market Index, which includes approximately 100% of the investable U.S. stock market.
The fund invests by sampling the index, meaning that it holds a broadly diversified collection of securities that, in the aggregate, approximates the full index in terms of key characteristics.
VTSAX has a low expense ratio of 0.04%, which means that for every $100 you invest in the fund, you pay 4 cents in fees. This is one of the lowest expense ratios available for a broad-market index fund.
It has a long history of performance, dating back to 1992. Over the past 10 years, the fund has returned an average of 10.36% per year. This is slightly higher than the average return of the S&P 500 index, which is the benchmark for many large-cap U.S. stocks.
Vanguard is a good choice for investors who want broad exposure to the U.S. stock market. The fund is low-cost, well-diversified, and has a long history of performance. However, it is important to remember that all investments carry some risk, and the value of VTSAX can go up or down over time.
3) Fidelity Contrafund (FCNTX) :- It is a large-cap growth mutual fund that was launched in 1966. The fund is managed by Will Danoff and has a team of analysts who research stocks and identify those that they believe are undervalued. The fund invests in a variety of industries, including technology, healthcare, and consumer discretionary.
FCNTX has a long history of performance and has outperformed the S&P 500 index over the long term. Over the past 10 years, the fund has returned an average of 12.3% per year, compared to the S&P 500’s average return of 10.2%.
However, FCNTX is a more volatile fund than the S&P 500 index. This means that the value of the fund can go up or down more than the value of the index in a short period of time.
FCNTX is a good choice for investors who are looking for a long-term investment that has the potential to outperform the market. However, it is important to remember that all investments carry some risk, and the value of FCNTX can go down as well as up.