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
There seems to be some emotional outbursts against MFs among the opinions here.
A question to those who despise MFs - how much have you lost in direct equity? I bet it's plenty more than in MFs!
Mutual Funds can perform as good as /a bit better than the market. The inexperienced investor is likely to perform with the market in a bull run, losing his pants (and more) in a bear market.
The MF industry needs a lot of cleaning up, but they are currently better than ULIPs and punting directly (and blindly) in the markets.
Sometime i feel that, this REDIFF WALA are getting some commission from Mutual Fund Companies, thats why they keep on publishing article on Mutual Fund, that too the advantages. So, i request to rediff please post disadvantages also, don't just focus on advantages there is always diadvantages also, so please write about it, don't misguide people.
I think that MF benefit AMC the most. From the pointview of a new & layman investor, he doesnot have to bother about making his portfolio & swithching during the market fluctuations & has satisfaction that his investments are taken care of by experts. It helps if the fund manager is good because in the long term the AMCs work for there reputation also. Though markets are always unpredictable & fund managers are only humans. Investing directly in stocks is for bold & experienced investors.
The man who can not invest his earnings personaly,he must invest his money looking forward the ups and downs of share maket.Most people do not understand the Share markets,they can take help from the share brokers. Investing and gainful result can be achieved through your judicious steps.Now a days invesment in growth and equity fund is beneficial for the investors.In this way ,Saving can be converted and increased satisfactorily.
I went thru the various opinions on MF investments and could not stop myself from writing. The opinions r extreme; those who made money in last 5 years swear by it and those who lost money in one year are against it tooth and nail. I think it is a question of getting ones basics right. MF by themselves are like medicines. U walk into a medicine shop and ask for a good medicine... all medicines r meant to be good. So if u buy funds like this then only god can save u and ur money. MF is a investment vehicle to reach from point A to point B. Now it is the job of a financial planner to ensure that point B is higher than point A in terms of wealth. So my request to all, do not blame MFs for ur state of affairs...
RE:U need a Doctor
by Ranjit Dani on Apr 02, 2007 01:12 PM Permalink
yeah u r right.. if somebody with diabetes needs insulin and takes regular doses of penicillin...its not going to help
RE:U need a Doctor
by Abhay T on Apr 02, 2007 08:33 PM Permalink
I think a little more desription is required here. Basically, when you invest in MF, you need to know what you are trying to achive. A good financial planner can help you achieving this. When I met a good financial planner, he advised me 2 things. 1. I need to know what are my financial requirements. When do I need money and how much returns I expect. 2. Every fund manager has a specific strategy and that's why returns may be different in short term. E.g. Fund manager 'A' may invest in a specific stock knowing it won't turn into big profits for a while. But he is sure that within few years the specific company can breakeven and start booking big profits. So, it is just possible that in first couple of years you don't earn enough, but over a period of time you can earn better results. MFs are not for booking quick profits. Just like shares you have to stay invested in MF over a longer period. The only difference is you can use experience and knowledge of well establised experts. Thye reduce the risk over long period by diversifying the investment. If you think you already know lot more about stocks then you can always create your own custom funds by diversifying your own investment.
From my experience, Mutual fund investment is not going to fetch anything. From my 10 years experience in stock market & MF's, I came to conclusion that Mutual fund managers are also human beings and they too invest in the same set of stocks in which individuals do. The day market goes down by say 2%, my mutual fund portfolio goes down by 5% and in the same way if the market goes up by 2%, my mutual fund portfolio goes up by 1.5%. When I compare it with my stocks portfolio, it is far better than mutual fund. So my advise is to go and buy the stocks which you like and book profits.
RE:Mutual fund investment is totally rubbish
by Sanatan Panda on Apr 06, 2007 06:17 PM Permalink
Most of the Fund Managers are a useless lot.They are only interested in getting fat salaries and bonuses and they care a damn about the investors.Often,with the change of the Fund Manager, an MF scheme which was paying good dividend,suddenly stops payment,despite favourable market conditions.Investors are kept in the dark about what these fellows are doing with their(investors') hard earned money.Fund Managers and the MFs take shelter behind the declaration that Mutual Funds are subject to market risks and past performance may not be sustained.SEBI,which is supposed to be the watchdog of investors' interests, remain a silent spectator.Investors should demand the inner working of MFs,under Right To Information Act.Public should stay away from MFs.
