Wow.. This is an good article.. Every now and then I see articles of why mutual funds are best, which rather seems to be an paid advert by the so called Asset Management Company's. I have already invested in Mutual Funds but these points were never taken into consideration. Had these points been taken into consideration I would have got better returns. Now I feel the Asset Management Co's are eating up from my money a lot. :(
RE:The risks of investing in a mutual fund
by anthrax bactria on Apr 03, 2007 12:04 PM Permalink
ELSS MF's are still a good bet as they also help you save taxes, and i have already recovered 20% of my investment in 1 month already due to the dividend declaration by the MF's.
RE:The risks of investing in a mutual fund
by yacoob mohammed on Apr 03, 2007 12:43 PM Permalink
which ELSS MF scheme did you select for your investment?
RE:The risks of investing in a mutual fund
by prashant sharma on Apr 03, 2007 01:22 PM Permalink
i am having pity on your knowledge level anthrax. Dividend does not 'recover' your value. In fact the invested corpus decreases by the amount of the dividend. Actually dividend option is the worst way to buy funds. Growth is far superior.
RE:The risks of investing in a mutual fund
by biz Narayan on Apr 03, 2007 04:16 PM Permalink
anthrax is a bio terrorist. This time he is being terrorized and can't fanthom where his 20% dividend vanished.
RE:The risks of investing in a mutual fund
by Shyamal Roy on Apr 03, 2007 09:56 PM Permalink
Sorry Mr.Prasant.I don't agree with ur view.In case of dividend you get Tax free cash.For example from NFO U purchased 1000 units @Rs10/- each=10,000/ .Now a dividend declared is say 100% I.E. 10,000/- this you can use on ur day 2 day expenditure.-Yes it is true, after post dividend ,the fund NAV is reduced by a maximum of 15%.Where as in case of growth option say pre dividend NAV is 40/-& declared dividend is 100% then ur a/c credit will be 10000/40=250.Now just after post dividend NAV become 34/- & if u invest the received dividend Rs 10,000/- @34/- with entry load say 2.5%, amount for purchase is Rs9,750/- & units to be credited to the a/c is 286 which will be more than growth option. I think I am able to explain.
RE:RE:The risks of investing in a mutual fund
by prashant sharma on Apr 03, 2007 12:01 PM Permalink
hmm, you read a few words and form an opinion. good for you. it is people like you only who bleed to death during a market crash.
