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.
