Why Growth Mutual Fund Choices Need Many Years Of Historical Data

Growth mutual fund investments are the safest way to harness the growth power of the stock markets, without exposing yourself to unnecessary risk. Mutual funds have been part of the investment market since before the last depression, as investors sought a way of spreading risk without losing the potential for gain. This part of the industry has continued to grow dramatically throughout the second half of the twentieth century, as new sections of the population have began to consider stock market investment for the first time. The objective remains fundamentally the same as that of the institutional investors.

The main reason to choose mutual fund investments is that they have built in diversification, allowing you to spread your investment over many different stocks without needing a huge budget to do so. This may limit to a degree the potential for growth, but it certainly allows you to hedge your investment against the market fluctuations which are always present. With a careful study of which sectors tend to be resilient when others are depressed, it is possible to create a balanced portfolio which will experience steady growth.

The negative sides of mutual funds need to be borne on mind before you make a final choice to go ahead with this type of investment. You will not be able to choose the stocks which you invest in, which be a problem if you are someone who studies the market and likes to make your own picks. You need to find a manager whose ideas will be similar to your own. Choosing a mutual fund for growth will usually entail choosing stocks from established sectors rather that those which are emerging.

Choosing stocks for growth will demand finding a solid base of traditional industries on which to build the portfolio. There can be some exposure to volatile sectors of the market to add the potential for spectacular gain, but the emphasis will need to be on the tried and trusted. As you will not be looking for dividends, you can choose companies which are known for reinvesting profits back into the business to facilitate expansion. A well managed growth fund will usually outperform a more speculative investment in the long run.

When you are studying the market to find the right growth mutual fund, you will obviously need to consider results going back for many years. Even a decade of results may not give a completely accurate picture of what is likely to happen in the future, because that decade may only have experienced extreme market conditions. Look at the performance of several mutual funds over the course of twenty or more years, to gain some idea of their potential. In any case, you will need to study the individual picks within to really know which is the best growth mutual fund.

 

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Lost faith in your SIP? Don't give up - Hindustan Times

Lost faith in your SIP? Don't give up
Hindustan Times
Data from Computer Age Management Services (CAMS), a registrar and transfer agent to a number of mutual funds, shows that spooked investors are voting with their money and the number of ceased SIPs has almost doubled over the calender year 2011.

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Symform Secures $2 Million In Series A Round Of Funding
Waltham: Seattle based cloud storage vendor Symform has secured $2 million in their series A round of funding from Westfield Capital and existing investors OVP Venture Partners and Longworth Venture Partners. With the new round of investment, the total of series A comes to $7.5 million...


At least 1.66 mn SIP accounts closed in 2011 - Livemint

At least 1.66 mn SIP accounts closed in 2011
Livemint
India's `6.81 trillion mutual fund industry is losing its most trusted source of equity inflowsEURsystematic investment plans (SIPs). The latest data from registrar firms Computer Age Management Services Pvt. Ltd (CAMS) and Karvy Computershare Pvt. Ltd .

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The move away from defensive bets to continue - mydigitalfc.com

The move away from defensive bets to continue
mydigitalfc.com
By Bijoy Sankar Saikia Feb 12 2012 India will need enabling policies during MarchEURApril period to sustain stock market's ongoing rally, says Nimesh Shah, managing director of ICICI Prudential Mutual Fund. In an interview with Bijoy Sankar Saikia, .

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Poor returns hit MF investments through SIPs - Business Standard

Poor returns hit MF investments through SIPs
Business Standard
Investment in equity mutual funds through systematic investment plans (SIPs), once a steady route of sticky money inflows to the fund industry, is now being hit. Volatile market conditions and poor visibility of expected returns are making investors .

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Take top-up loan to prepay your personal loan - Deccan Chronicle

Take top-up loan to prepay your personal loan
Deccan Chronicle
I have been investing in Reliance mutual fund growth SIP since last three years. The return is not satisfactory. I can continue my contribution to SIP for the next three to five years. Is it advisable to continue my SIP or withdraw in loss?

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Entry load or not, most foreign funds got it wrong
EURWhen a fund house like Fidelity exits, it does not augur well for the Indian mutual fund industry,EUR says the chief executive officer of a leading fund house. But, he is quick to add, exits of large and well-known foreign fund houses from India are common...


Five local fund houses to manage Kuwait's $1-billion India portfolio
Kuwait Investment Authority (KIA), the Gulf state's sovereign wealth fund, has selected five domestic mutual fund houses to manage its India equity portfolio...


Four fund managers' view on how equity markets are likely to take in coming months - Economic Times

Four fund managers' view on how equity markets are likely to take in coming months
Economic Times
Meet some of the country's leading fund managers who have been managing your money convincingly, both during rallies and in downturns of the equity markets. In candid conversations with ET , top executives of the mutual fund industry share not only .

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