Table of Contents
- 1 Which mutual funds has high risk and potential of higher return?
- 2 What is the most important factor in a mutual funds performance?
- 3 What is risk in mutual fund?
- 4 Why is higher return higher risk?
- 5 How do you determine mutual fund performance?
- 6 What is the average CAGR of reliance Growth Fund?
- 7 What should a prospective mutual fund investor consider?
Which mutual funds has high risk and potential of higher return?
Top high-risk mutual funds
- Escorts Tax Plan Direct-G.
- Aditya Birla SL Tax Plan Direct-G.
- DSP BlackRock Tax Saver Fund – Direct Plan.
- Aditya Birla Sun Life Tax Relief 96 – Direct Plan.
- Tata India Tax Savings Fund – Direct Plan.
- L Tax Advantage Direct-G.
- IDFC Tax Advantage (ELSS) Fund – Regular Plan.
What is 3 year return in mutual fund mean?
12\% annualized return in 3 years means 12\% return earned every year for the past three years and not 12\% total return in 3 years.
What is the most important factor in a mutual funds performance?
One of the most important factors affecting mutual fund investments is the performance of a specific sector or industry that the fund is invested in. Certain policy changes implemented by the government can impact different sectors in different ways.
Which type of mutual fund has the highest risk?
Stock funds, also known as equity funds, are valued higher for long term situations. In short term investments, stock funds will fluctuate dramatically. But over time they have historically performed better than other types of investments. Overall, stock funds present the highest potential risk for investors.
What is risk in mutual fund?
Like most investments, mutual funds have risk — you could lose money on your investment. Usually, the higher the potential returns, the higher the risk will be. For example, stocks are generally riskier than bonds, so an equity. The part of investment you have paid for in cash.
How are mutual fund risks calculated?
It is calculated by subtracting the risk-free rate of return (U.S. Treasury Bond) from the rate of return for an investment and dividing the result by the investment’s standard deviation of its return.
Why is higher return higher risk?
The risk-return tradeoff states the higher the risk, the higher the reward—and vice versa. Using this principle, low levels of uncertainty (risk) are associated with low potential returns and high levels of uncertainty with high potential returns.
What are the factors affecting selection of mutual funds?
Factors for Choosing Best Mutual Fund Scheme
- Performance Against Benchmark.
- Performance Against Category.
- Consistency of Performance.
- Fund Manager’s Experience.
- AMC Track Record.
- Scheme’s Assets Under Management (AUM)
- Expense Ratio.
How do you determine mutual fund performance?
The easiest way to do it is by using the fund fact sheet. In simple terms, the fund fact sheet shows the performance of all the schemes managed by your fund house, including your investment. You must compare these financial ratios with the mutual fund schemes in the same category to understand where your fund stands.
What is the maximum return on investment in mutual funds?
Now, if we talk about safer schemes like liquid funds or overnight funds then these schemes can generate maximum returns of around 7-8\%. While if we talk about returns from equity funds like small or mid cap funds then these funds are capable of generating 15\% plus returns in the long term.
What is the average CAGR of reliance Growth Fund?
CAGR varies depends on the time period you are looking for. As far as i know over the period of 22 years Reliance Growth Fund delivered 24\%+ returns delivered. This is highest as far as i know. Small cap funds launched 10 years ago and giving same returns. Some of these funds can give more than 25\% over a period of 25 to 30 years.
Is past performance of mutual funds an indicator of future returns?
Past performance is not an indicator for future returns. The percentage returns shown are only for an indicative purpose. Speak to your investment advisor for further assistance before investing. The table above shows top-performing mutual funds based on 3-year SIP return.
What should a prospective mutual fund investor consider?
A prospective mutual fund investor must also consider personal risk tolerance. A potential investor must decide how long to hold the mutual fund. There are several major alternatives to investing in mutual funds, including exchange-traded funds (ETFs).