Stock market has been unstable for a while now, IIP numbers were better in comparison of the last months but standalone, they too don’t present a very good picture of the economy in short term. In the current global scenarios, when there has been unrest in the Middle East and Tsunami along with earthquake in Japan, expecting stock market to deliver good in the short run is expecting too much.
Even domestic factors have not been very good. Japan’s Tsunami is going to hit the stock markets as well, so what are options remaining for those investors who seek good return but are not interested in taking too much of risk on their capital. Mutual funds and Exchange Traded funds are some of the best available option for them. As we know lot of good stocks are trading at a much discounted prices but it is very extremely difficult for an average investor to figure out that ‘’which one to pick and which one to drop?’’
We can leave this headache to fund’s managers of these mutual fund and asset management companies. But we have to remember one thing; mutual funds too carry some amount of risk. Time frame and correct scheme is the key to success in the investment in mutual funds. ETFs are quite good in terms of their ease to buy and sell. There are mutual funds targeting every segment of the industry, be it small cap companies, mid cap companies or large cap companies. So if you are looking for least risk then go for large cap funds and so on. Similarly, ETFs too are available for various kinds of companies and one can pick based upon the individual choice and risk appetite.
There are mutual funds and ETFs available for the investment in gold also. Gold has given awesome returns in the last few years and it is expected to continue its bull run for more time. So it is a very good option if someone is looking for an investment which comes with a very less risk and can provide huge returns over the next few years.
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