The main features of Mutual funds

The major distinguishing feature of the mutual fund among other investment schemes is the availability of different schemes suitable for every category of people. Risky as well as highly profitable equity funds, risk less balanced funds and the funds which give maximum coverage as well as average merits extra are the major funds. The investors can select the suitable funds according to the situations and his objectives.

These funds also have several different sub groups which can be use for various needs. According to the criteria of the popular rating agency Icra the following open ended schemes provide maximum profit.

Balanced fund

Balanced funds give attractive profit along with the legitimate protection. Without taking much risk balanced funds helps to make use of the profit of shares to a small extent. Some balanced funds give 12% to 15% merits within one year. They are the following.

Some profitable balanced funds

1. HDFC balanced fund

2. HDFC prudence fund

3. Reliance regular savings fund

Diversified funds are the most secure funds among the equity funds. Commonly diversified equity fund give maximum profit. Certain diversified funds make profits from 28% to 43% within one year. They are as follows.

1. DSP black rock micro cap fund

4. Canera robeko force fund

5. HDFC mid cap fund

6. SBI magnum sector umbrella fund

7. Canera robeko emerging equities

8. Reliance equity opportunities fund

9. UTI master value fund DSPB

10. Black rock and small and mid cap fund

M.I.P is the monthly income plans which are suitable for those investors who are in search of making legitimate income by investing a fixed amount together per month. The best funds among these will give 8% to 10.5% annual income.

3. SBI monthly income plan

4. Canera robeko monthly income plan

5. Reliance

6. ICICI Pru M.I.P

7. LIC MF flotter monthly income plan

8. Birla sun life monthly income plan

9. Baroda pioneer monthly income plan

ELSS for income tax rebate

The investors are always in search of such schemes which give rebate for income tax. The ELSS equity funds in mutual funds are the most attractive funds among them.

The distinguishing feature of the ELSS investment is the rebate in tax. Rebate will get and during the starting of the investment and there is no tax is need for the withdrawal of the investment. According to 80C rebate will get up to the ELSS investment of 1lakh Rupees. The lowest lock in period of other schemes which assure rebate is 5 years to 15 years where as the lock in ;period of ELSS is only three years Moreover the availability of high profit make ELSS more popular among other similar schemes. It may be said that new tax code may brought some changes in these rules. But ELSS is one of the best schemes which provide rebate for income tax.

PF, PPF, Insurance and other such rebate providing schemes give only profit less than 10%.The ELSS invested in shares give profit greater than 15%.

The HDFC scheme provide 28% long term advantage fund within last one year. Fidilitibha scheme gave 27% tax advantage fund and quantum scheme gave 26% tax savings fund within last one year.ING scheme provide 24% tax savings fund within last one year. HDFC gave 24% tax saver and ICICI Pru scheme gave 24% tax plan within last one year. J.P Morgan India scheme provide 23% tax advantaged fund and Canera Robeko scheme provide 23% equity tax saver fund within last one year. Reliance scheme gave 23% tax saver fund and Religare provide 22% tax plan within last one year.

ICICI prudential tax plan

The investors who are in search of such schemes which provide maximum increase in income along with the rebate in income tax can select ICICI prudential tax plan without further thoughts. Tax plan, the equity linked savings scheme of the most popular ICICI prudential mutual fund company is the most oldest among these funds. The scheme which is started in 1999 is oncoming with flourishing business performance.

On the basis of the business records of ELSS in the last five years ICICI pru tax plan is in The first place for possessing high profit to the investors.

The investors get 23% profit within one year. The investors get 166% profit within 2 years and 100% profit within 5 years. The profit become less only during the time of market crisis in 2008.Even that time also ICICI prudential maintain its second position among the ELSS groups withi18% profit.

The glorious performance is achieved by the investment of this scheme in the company with well equipped basic facilities. The fund managers give primary importance to maintain Port Folio which is usually centralized in that companies which have high value and fast growth. The port folio from the large cap share assures maximum profit along with the security of investment. Along with this it also pay great attention to increase the profit by the controllable investment in the mid cap share.

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