Compare mutual funds side by side

Investing in mutual fund is one of the ways to use smaller capital in bonds and stock operations and even to try generating profit of it. In fact, it is one of the few ways, which allow ordinary people to be part of stock exchange, to invest in different sizes and kinds of companies etc.

The mutual fund is a simple idea, which allows collecting of capital from different sources - individuals or companies, and investing them in different instruments. The general'objective every fund has is to be profitable, generating more capital for the investors. The mutual fund's objective also includes the type of investments it makes and in most of the cases the investment period. The structure of a mutual fund is similar to the others - there are shareholders (investors), board of directors, who represent the shareholders and contractors - the money managers and the companies, where the investments are.

When comes to invest you want to know how to find the best in the industry, which will guarantee you the return, which, in most of the cases will be high enough. Many people rely on past performance results of the fund, believing that it will continue that way. Others try to understand more about the companies the fund invest in, trying to predict their growth. The smartest people, look at manager's evaluation from different sources- the manager is the one that invests, so even if you like the companies, where the fund invests - he might change it. The fund can change the manager, without even informing the shareholders, so always try to know how your manager is doing and if he is not changed.

Despite knowing that much, we still find it hard to choose a mutual fund - there are so many good performers with quality managers and investments, that you might not see any differences. This is why there is a software, which compare the funds side by side; there are many web pages, which use this kind of tools, allowing you to compare up to 5 mutual funds at once.

The mutual fund comparing tool compares everything - Rates, Performance, Portfolio and also to compare mutual funds across different time periods and against benchmark Indices.

In order to test that tool I went at and compared two random mutual funds, side by side. The HDFC Equity Fund (G) and the HDFC Balanced Fund (G); if you follow the link you will be able to see, too.

As you saw the mutual fund comparing tool shows everything - Fund Class, Fund Type, Ranking, Scheme Assets, Inception Date, recent dividends, benchmark, minimum investments, AMC Asset, AMC/Fund Family, NAV details, Performance in different time periods, Portfolio and also management and fees. In fact these are the important details you must know if you are going to choose a mutual fund to invest in.

Since there is wide availability of available mutual funds to invest in - the compare tool ishighly used, from both - beginners and experienced investors.