Why You Should Invest in Mutual Funds in 2015?

Mutual Funds are some of the most sought after investment opportunities. They offer good returns and a great sense of security that most other investment opportunities cannot provide for their investors. At the start of the year, mutual funds faced a slump of sorts, but market analysts expect the year to be quite fruitful for those who have made the smart decision of investing their money in mutual funds. However, those who have predicted good returns from the market have also stated that these returns will depend on certain factors that will act as benchmarks for the market through the year. These benchmarks include the pricing of crude oil, which saw a slump last year, and a hike in the rates of the Central Bank.

Mutual Funds

The decrease in the crude oil prices hit the energy sector in a bad way. At the end of 2014, energy mutual funds were seen as the biggest losers, and these doesn’t seem to be any respite in sight for these funds. On the other hand, this slump in prices has been most beneficial for airlines, as airline stocks skyrocketed. Therefore, on the whole, the lowering of crude oil prices has benefitted the market.

After the financial crisis in 2008, the Federal Reserve System set up some aggressive measures in the form of rates being at an all-time low, and repurchasing assets. The central bank completed its 3 rounds of repurchases by October 2014, but they continued to keep their rates low. It is however expected that they will raise the rates during this year, which will have a positive effect on the market, as profit margins are expected to rise.

Based on the market expectation, market analysts have handpicked the T. Rowe Price Health Sciences Fund, the Fidelity Select Transportation Fund, and the T. Rowe Price Global Technology Fund as the three funds to have invested in this year. They feel that these funds are most likely to give you the best returns for your money. Always remember to check all fund documents before you finally decide where to invest your money.