Since there is no guarantee or assurance for retune in the Fund, the Fund Manager often utilises the public money at the best interest of the promoter rathern than the public. They recover the management commission at the agrred rate before computing NAV of the Fund, even if the fund entails losses either due to bad decision of the the Manager or reight causes like decrease in the prices of the instruments. There should be a clause in the mutual fund agreement that if the Fund performs poorly, the mangement commission should be reduced proportionately to the downward movement of the NAV.
Where do the mutual fund managers invest in heaven or in this share market ? Why is this hipe for the mutual funds ? Rather these mutual fund mangers take thier commission irrespective of whether the individuals make any profits. Most of the Mutual fund investors invest largely in the 30 share index and when these shares fall, no body gets a wind of it accept to blame on the internatonal market fall, raise in crude oil of lower indian market sentiments etc. Its your money so make sure where you invest.
Re: 6 advantages of investing in a mutual fund
by Venkatesh on Mar 09, 2013 11:36 AM Permalink
Hi Satyaprakash Nair, Mutual funds do not solely invest in share market.There are different type of mutual funds, I mean if an investor do not want to get into share market he can choose completely debt funds which do not have equity participation at all. or even they can go for hybrid funds (equity,debt and gold mix). and Yes mutual fund managers charge their management charges, but if one is looking at a long term perspective mutual funds is a better investment compared to other financial instruments like Bank FD and LI.
everyone need to understand his/her own capability of managing their own money.MF are a good option of investing money but still the investor needs to put intelligence with money by balancing the investment. and regarding the cost of investment.... i am least bothered because i still feel MF are a good investment option
