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Mutual Fund - Who is most benefited
by dooloo basak on Apr 06, 2007 08:23 PM

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.

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6 advantages of investing in MFs