Mutual Fund Calculators: Power to the lay investor!

In this day and age of internet connectivity, researching your investment options have become much easier and accessible. It is easy to assume, that tools like returns calculators, sip calculators, retirement planners, etc. have helped people choose the right Mutual Fund with ease. These Mutual fund calculators have helped the lay investors answer questions like "Will this mutual fund give me good returns?" without the trouble of physically going to the mutual fund office.

More than that, these online calculators have greatly increased the number of investors in the market, which has taken the economy ahead, greatly. This is mainly because consumers have been better educated about investment options like Mutual Fund based Systematic Investment Plans and have learned how it is the answer to preventing the pitfalls of equity investment while still enjoying high returns.

Once a person figures out how much they want to set aside to invest regularly, SIP calculators do the rest for them. Other than guiding investors, these calculators have also been very effective in explaining the importance of retirement planning.

But it isn't just these returns calculators that are encouraging people to invest in Mutual funds; it's also the numbers that speak for themselves. Over the last 10 years, some MF schemes have given returns in excess of 25% CAGR. Add to that the fact that, historically, SIPs absorb market volatility, give compounding returns, & inculcate a sense of a savings discipline in the individual and you know why this perfect wealth-building tool has stood the test of time.

However, we are moving away from the point. Yes, Mutual fund SIPs are awesome and have been the common person’s weapon against inflation, but the fact remains that SIPs & Mutual Funds would have continued to be misunderstood if it had not been for these interactive, self-help calculators. These tools revolutionized SIPs by allowing the lay investor out there, to start an SIP within minutes, sometimes, without any bureaucratic paper work involved.

Take matters into your own hands, and start an SIP today!

Strike Gold with Investments!

Due to the maddening world of investments and returns, most people today are highly sceptical when it comes to putting in their money into a fund that may not yield results up to expectations. This difficulty also makes it tougher for managers to pitch their schemes as viable vehicles for investment, as every penny matters when it comes to profiting on your own money. However, one mode that is unanimously preferred is that of betting on precious metals. But before you quickly find a gold or silver stock for allocating your money, here are some things you should know.

• Why such funds?

Unlike static monetary or security-based funds, a lot of people prefer to invest on commodities because the prices rarely fall drastically. Moreover, because of their value amongst businesspersons, traders and families, metals such as silver or gold are nearly always in high demand when it comes to investment. Thus, having gold mutual funds as your primary stock-earning vehicle may turn out to be a good idea.

• What to know?

Just like any other mutual fund, there is a degree of risk involved here. Thus it is important to read the fine print and know your obligations as well as the expected returns on the money. Unlike a rudimentary method of straightaway pawning your money against the gold, in such funds the fund manager operating on your behalf will place your money against the securities of gold-mining companies, thus equalling the monetization of those shares when it comes to your returns.

• How to get one?

These are complex mutual funds so it is always important to take your time before deciding on one. Many brands and mutual fund corporations are offering schemes centred on gold, such as the DSP Blackrock World Gold Fund, wherein the objective is to achieve capital appreciation through exactly this. The World Gold Fund is one among several others such as BSL Gold or Kotak Gold Fund to offer this.

So strike the right spot and hit the jackpot!