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  • Category: Miscellaneous

    Investing money in Mutual Funds or shares-Is it beneficial or not? Share your experiences

    For a change talk now about financial matters. Commonly as a part of savings, a common man saves excess money with them in the form of fixed deposit or recurring deposit in a post office or a Bank. But some people invest the saving amount in Mutual funds run by Banks or by big business organizations. They say they get more profit in long run than what they invest in banks or post office with a fixed interest. Members share your experiences what you got when you invest in Mutual funds or invest in shares or chit funds etc. At the early time of my job, by curiosity I invested in two different UTI Mutual Funds of about Rs. 4,000 rupees of 400 share units at a price of Rs.10 each. After 20 years I found, the NAV of each unit has raised to more than Rs.100.
  • #575244
    To cut it short, investing in mutual funds is quite likely to be more beneficial than investing in the fixed deposits but as the disclaimer goes, the mutual fund investments are subject to market risks. In India mutual funds have become popular since last two decades. The fund managers of reputed investment companies pool out savings from thousands of small investors and invest the same in bonds, stocks, short-term debts etc.

    I personally, never indulged myself too much in such activities or tried to make a profit through investing in the mutual funds etc. I used to invest only from tax savings point of view for availing benefits of section 80C, though even that was not required as the contribution in GPF itself was qualified for such benefits.

    The fixed deposits are the perhaps the safest investment options though at present the rate of interest is revolving only around 8%. It is said that the yield from the mutual funds may be much more at least more than 10% in the safest types of options in the very long run.

    I always remained happy and content, if the money invested is not eroded at least. Most of the small investors are not fully aware of the intricacies and nuances of such investments and depend solely on the sweet talking of the agents concerned.

    Let us encourage each other in sharing knowledge.

  • #575248
    There is a saying in Tamil that if we do not know about a city or town, we must not visit that place blindly. We must always make inquiries and then proceed. Same is the case with mutual funds shares which are always associated with market risks. What i firmly believe that those who are having surplus money and want to invest can go for the option of taking premises which can fetch rent and purchase some lands which can get increased appreciation in shorter period. For example one of my friend has purchased a plot in Mareddpally area of Secunderabad in the year 1997 at just 18 lakh for 660 Sq yards. Soon with three years , the real estate boom in Hyderabad has benefitted all and this person sold that property for a whooping 90 lakh and you can see the difference of amount he earned in just three years because he made right investment in real estate at right time. Land never deceives the investor.
    K Mohan
    I consider myself as the learner everyday

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