Generally, investment funds are pooled portfolios of investments made with money taken from investors who aim to make money from the investment of the fund’s assets into varied deposits, securities or other monetary instruments. The legal definition of investment funds may differ from country to country. If we particularly talk about the European Union, there are primarily contractual investment funds and corporate funds that are considered to be the recognized form of best investment funds.
Money taken from investors from the sale of fund units is then used to make a set of assets that is diversified between different monetary instruments. A diversified investment portfolio evades associated risks to single financial instrument. Depending on your particular fund’s investment strategy, you can also access numerous global money markets by obtaining fund units with single purchase and invest in many different securities at the same time. These are the securities wherein investing one by one is not only very expensive but also is very complicated.
Investment funds may make money in many different ways, ranging from investment value growth to profit earned on payments for fund investments. The value of the funds’ assets achieved by investment activities is reflected through the development or failure of the net asset value of the unit. You can also sell units in order to realize your potential gains or losses acquired from your investment. If the unit’s redemption cost goes beyond its original costs along with services charges, it indicates that you have gained profit from the fund. If not, it simply means you have experienced a loss. Sometimes, the profits gained by the fund are also allocated to the investors which are considered as payments from that fund.
Investment funds can be suitable for both newbies and experienced investors though many investment enthusiastic lack the required time, understanding, and experience. However, the management of some securities needs profound investment awareness, long-term experience and great commitment. For that reason, it is crucial to trust your investment with professionals who can help you achieve a more effective hedging of risk to lessen the impact of a single investment failure.
Best Investment Funds to Consider This Year
Making an impressive investment portfolio certainly entails numerous complicated steps. To begin with, you should shortlist some of the best investment funds with a consistent performance track record. Then you should choose those that are best in line with their associated risk profile and key objectives of investments. At this point, it is important to understand how you can fix the configuration of the portfolio. Also, there is a need to monitor and review the overall performance of the investment portfolio on a regular basis and take necessary steps if required.
Listed below are some of the best investment funds to invest this year.
- ICICI Prudential Regular Saving Funds – These are one of the best investment funds for their ability to generate regular income by investing mainly in debit and money market instruments. Also, they hold long-term capital appreciation as they invest a portion in equity funds.
- SBI Bluechip Fund – These funds seek to offer investment enthusiastic prospects for long term growth in assets with an active management of investments in a diversified set of large capital equity stocks.
- UTI Regular Savings Fund – This is another great name among the best investment funds which is known for its unmatched financial rewards in the market. UTI Regular Savings Funds can be invested mainly in debit and money market instruments as well as put into equity and related securities to make money and capital appreciation.
- CR Equity Diversified Funds – They aim to generate capital appreciation through investment in equity and related securities. Even though there is no guarantee that CR Equity Diversified Funds can realize the objectives of the investment scheme, they are among best investment funds that most investors are considering this year. If you are too interested in these funds but have some doubts, we strongly recommend you to consult your financial advisor in this regard.
- Motilal Oswal Multicap 35 Fund – They are rapidly emerging funds in the market which aim to achieve long-term capital appreciation by mainly investing in 35 equity and related instruments across market capitalization levels and sectors. The Motilal Oswal Multicap 35 Funds happen to be the best investment funds for both current and new investors in the marketplace.
- Edelweiss Large Cap Fund – It is one of the best investment funds that come with a regular plan and offer capital appreciation through an investment portfolio which is mainly consists of equity and related securities of the 100 biggest corporates listed by market capitalization in India.
- ABSL Tax Relief ’96 Fund – It refers to an equity linked savings scheme which comprises a credible track record of yielding higher risk-adjusted gains for investment enthusiastic. ABSL Tax Relief ’96 Fund has been in the market for 20 years with utmost success which itself marks it one of the best investment funds to consider this year.
- LIC MF Debt Hybrid Fund – These funds come with a focus to provide investors with a stable income by investing in 65 percent (minimum) of its portfolio in some of the fixed income securities. The best part is that the exposure to equity and money market instruments under this fund scheme can go as higher as up to 35 percent per unit.
- HDFC Short Term Debt Fund – This fund has all the attributes of the best investment funds that seek to yield regular income by investing in debt securities and other money market instruments.
- Sundaram Short Term Debt Fund – These debt funds are meant to make regular income by investment mainly in fixed income securities that come with a maturity period of 9 to 15 months every time.
- The best investment funds for an average investor are those funds that produce good results all seasons, allowing you to just purchase and hold them. As an investor, you need to have complete balance in your investment portfolio in order to make your money grow along with avoiding heavy loses. Even the best investment funds can fall a bit short of this objective, but it is not impossible to assemble your own best investment funds from the list of available fund options.