Indian or for that matter the mutual funds operated by the foreign fund houses in India are running nothing short of a scam house in name of Mutual funds. The corporate clients always get best of retail when they get their entry exist suitably backdated to take advantage of low prices. These people spend close to 7-8% of you unit cost of sales & marketing, charge upward of 1% as management commission. Wonder where all that goes... It's scary to hear the callousness with which so called stellar performers manage people's funds in markets, they treat public fund as a training pot for their trainees where losses running into a few lakhs are just useful lesson. No fund manager has consistently beaten the index even for 5 years time. Better pick up decent companies and buy their stock, market is full of idiots who think Mutual Funds are for investors benefit....
RE:It's a pit full of vipers
by Ajay Banerjee on Aug 28, 2007 01:46 PM Permalink
You may have some points, but the fact is that most of the major mutual funds in India have some schemes which have done much better than the Sensex or Nifty. There is enough data available on the internet if you want to check it. Your statement about most funds doing worse than indices is probably true for the US but not India. Finally, most Indian investors who invest in shares would probably get better results if they invested in carefully selected mutual funds. If you want to earn out of direct investment in shares you need to treat it as a full time job, which not everyone can do.
RE:It's a pit full of vipers
by WishyWashy on Aug 28, 2007 05:21 PM Permalink
Dear Sir! The words come from first hand experience not heresy. secondly the so called index beating schemes have stayed invested in very long risky end of market, in case of downturn it's customer who's left holding the katora. Secondly, all investment managers get fat fees when they make profit; no body has lost a job for losses. On average MFs loose money. last, you donot need to be an active investor to make money from equity market. Just find good stock and stay invested, try timing the market and you will turn out to be an idiot.
RE:It's a pit full of vipers
by prashant sharma on Aug 29, 2007 07:20 PM Permalink
no sir , they may not be the fools ,but i am sure most of them do not know about hefty fees charged by the MF companies which are in most of cases are hidden , and in most of the cases the returns shown by the MF companies do not potray the correct picture .
