What is the best equity income mutual funds? Below is going to share with you 3 top rated equity-income mutual funds available. Each has received a Zacks #1 ranking (strong buy) as well as past performance review to confirm these mutual funds will outperform their counterparts in the near future. To learn the Zacks rankings and past performance reviews of each equity-income mutual funds, please follow this link.
dividend payment ranked #3. One of the best income mutual funds is Dividend Equities. They have an excellent history of achieving high returns while maintaining generous dividend payments. Dividend Equities uses a two-tiered pay plan that allows investors to dividends via annual and semi-annual dividend payment. In addition to regularly dividend payment, Dividend Equities offer investors commission free trades that allow them to capture substantial profits from market movements in the mutual funds.
Another strong fit for high-income investors are Growth Equity Income mutual funds. The fund managers at this firm are dedicated to building a diverse portfolio of growth stocks, with particular growth stocks in mind. They have managed over $60 billion dollars in assets through growing stocks and alternative assets and have consistently proven themselves to be highly successful income investors over the years.
Fixed deposit ranked #2. The next best income mutual funds are those offered by Growth Equity Income. These funds have a very low expense and turnover fee and do not fluctuate as much in value when interest rates are falling. The reason for their low cost and low turnover is that they rarely hold excess capital gains. When the economy does perform and interest rates rise, the managers use their accumulated cash to take advantage of the rising values and purchase new growth stocks. At the end of their holding period, they mature and return all of their initial investment plus capital gains.
Growth equity mutual funds are famous for their growth and income producing capabilities. Because they do not accumulate any fixed interest rate profit for the duration of their investments, the returns tend to be steeper than other mutual funds; however, when the economy recovers they can still be profitable because their costs of trading will be lower. Their greatest asset potential is in alternative stock investments like real estate, technology, automobiles and distressed real estate properties. Their average returns have been between twelve and fifteen percent annually. As with fixed deposit stocks, they are eligible for unlimited variable rate investments.
I would not recommend investing all of your savings in growth stock mutual funds during an economic downturn. I feel that even if you do manage to get some returns on some of your investments, the losses you suffer will far outweigh the gains. If you must invest, I would suggest investing in growth equity and fixed income investments. Do some research on your own and determine what type of return you want to see. You can learn a lot from others who have done it before.
It is important to understand that with most stock market investments, the profit potential is decreasing as the stock prices fall. This is true with broad diversification as well. The key is not to invest all of your savings in one investment. A solid portfolio should have a mix of safe stocks, cash and bond funds and real estate or raw land properties. In addition, you will want a diversified approach by including some stocks that offer high dividends but offer low risk
Broad diversification will provide your portfolio with additional resources to meet any income or financial need that you may experience throughout your lifetime. Diversification provides an additional layer of safety to your portfolio and to your personal finances. Income equity funds and fixed income funds will both protect you against financial loss, regardless of the market. They will also ensure that you build a steadier and more secure foundation for building your retirement wealth.