How to choose the most reliable mutual fund that will generate income?
Before applying to a specific fund, the future investor must independently set certain goals for himself and take into account the following aspects:
- What amount is planned for investment?
- Duration
- Possible risks
- Expected income amount.
All factors are closely related to each other and therefore are taken into account together. When planning to invest for a short period of time, it is advisable to turn to an open-end mutual fund. For significant investments, mutual funds are interval or closed. But you need to be vigilant - the larger the expected income, the higher the expected risk.
Advantages and disadvantages of investing in mutual funds
The disadvantages of mutual funds include low liquidity, high commission fees, and the lack of guaranteed coupon payments and dividends. Mutual funds are definitely not suitable for short-term transactions and require constant monitoring of the actions of the management company.
Pros of mutual funds:
- ease of buying and selling shares (for open mutual fund);
- diversification of investments;
- the opportunity to invest in instruments of the foreign exchange market without being assigned the status of a qualified investor;
- optimization of the tax burden through the exchange of shares of various funds within the management company;
- guarantee of the safety of the investor’s private property when civil law relations change.
Now you clearly understand what mutual funds are and in what cases they are preferable to bank deposits. But before you entrust your money to a management company, remember that the state does not guarantee the profitability of these investments and does not ensure a return on the invested funds.
Sberbank mutual fund - profitability, depositor reviews
Sberbank offers three programs for investing in mutual funds, which differ in the degree of risk.
Sberbank mutual funds - asset management:
- Bonds Ilya Muromets . The period is at least three years. Expected profit 34.32% The program is optimal for those who want to protect themselves as much as possible from inflation rates and receive profits above the size of the open deposit. The risk in this case remains minimal
- Balanced . Investment finances are distributed in equal shares among shares and securities in different issuers. The investment duration is also from 3 years. Expected profit 44.15%. The main difference from the first program is investing in stocks
- Nikitich . Despite investing in shares with high liquidity and only in reliable companies, the risk remains at a high level. The minimum term remains the same - 3 years, but has increased by 50.08%.
According to user reviews, the programs help to earn a good income. This is a reliable bank that works with trusted companies. However, in order to get the desired profit, each client independently decides where he wants to invest.
Is it worth buying shares of the most profitable mutual funds?
The profitability rating is, of course, cool, but it is nothing more than a measuring stick. So two boys came out into the yard and one said: “I have a bigger gun!”, and the other: “No, I have it!” - and start throwing sand at each other
