Article: For high returns and safety, NRIs should try mutual funds

New Delhi, Jan 29 -- "Where shall I safely invest in India?" asked Lakshmi Narayanan. The quick answer is - mutual funds. Less volatile than direct investment in stocks and shares, mutual funds better manage your investment. And you do not pay taxes on your returns if you invest in equity funds for more than a year. Last year, the return on mutual funds was almost double the Sensex - the market index for Bombay Stock Exchange.

How are mutual funds different from stocks? You invest in the mutual fund and the fund, in turn, invests in a basket of securities across a cross-section of industries and sectors. This reduces your risk. Thus if a stock in the fund hits rock bottom your investment ...

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