Why mutual funds are not performing well?
Why mutual funds are not performing well?
Another reason why your mutual funds are falling could be because your investments are sector focused. This point is relevant to you only if you have invested in a sector fund. Sector funds invest only in a specific sector or industry. Even when the markets, in general, are doing well, certain sectors can suffer.
What happens if my mutual fund goes to zero?
In theory, a mutual fund could lose its entire value if all the investments in its portfolio dropped to zero, but such an event is unlikely. In most cases, investors are protected from fraud or other losses of capital, but not from a fund’s poor performance or the risks assumed.
Can I lose money in bond funds?
It’s important to remember that bond funds buy and sell securities frequently, and rarely hold bonds to maturity. That means you can lose some or all of your initial investment in a bond fund.
Is principal amount safe in mutual funds?
For many investors, losing their principal amount is risk, whereas for some others any depreciation in their gains is risk. Mutual fund advisors also add that contrary to the popular perception FMPs or fixed maturity plans are/were never a safe investment for very conservative investors.
Which are the best debt funds?
The table below shows the best-performing debt funds based on the last 5-year returns:
| Mutual fund | 5 Yr. Returns | Rating |
|---|---|---|
| Aditya Birla Sun Life CEF – Global Agri Plan – Growth-Direct Plan | 8.82\% | NA |
| ICICI Prudential Multicap Fund – Dividend | 13.73\% | |
| IDFC Government Securities Fund – Constant Maturity Regular – Growth | 9.56\% | NA |
Are debt mutual funds a good alternative to Bank fixed deposits?
Sadly, most individuals are unaware of the benefits of mutual funds. While mutual funds offer several asset classes to choose from, debt mutual funds are a good alternative to bank fixed deposits. However, you need to choose wisely. With declining fixed deposit rates, the interest in different investment avenues is growing.
What is FD (mutual fund FD)?
FD or Mutual Fund FD, also known as Fixed Deposit, is a popular saving instrument provided by banks for short-term and long-term investments. The rate of return on FDs is fixed and pre-decided by the Government of India; hence the growing inflation doesn’t impact the return on these investments.
Are fixed deposits (FDS) still the best investment option?
When it comes to saving money, Fixed Deposits (FDs) are the most preferable option for the investors. The reason being, it is one of the oldest saving instruments and deemed to be the safest with a fixed rate of return. But is it still the most appropriate investment option in the current times?
What are the best investment options for 5 years of return?
To see returns within 5 years. To see at least an 8\% – 9\% rate of returns. Then you have two widely popular investment options open to you – Fixed Deposits and Debt Mutual Funds (Debt Mfs).These are both investments that meet the above criteria, and have their own features which distinguish themselves from each other.