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  • Category: Miscellaneous

    How are mutual funds right when you know nothing?

    During the fever of IPL, every company seems to be promoting its product with great excitement, and when the player endorses them the penetration is pretty effective. "Mutual fund Sahi hain," they say is the prime advertisement being telecasted during the break and as the players are in the advertisement, the chances are the consumers would at least consider using the product. For around two years I have been researching the stock investing and stuff but still, I cannot say that the mutual fund still is the safe and right bet to keep your money engaged especially in the form of SIP as they claim to be. There are many categories of mutual funds and yes you can park money to stay safe against inflation but the right mutual fund is something you have to pick by your research and by taking the funds just by clicking the advertisement would do more harm than any good. The taxes, hidden charges, expenses, and asset allocation could make any fund perform good and bad at the same time. The FD and gold seem to be a good investment in the long run if you don't want to be involved in research and education and even if they claim by explicitly stating that there are market risks involved they are doing the best selling to us. Do your research and start with a small sum.
  • #712698
    It is the fact that mutual funds performance are subject to market risk and it is left to the thinking process of the investors to go for them or not. One thing is sure when it comes to share market, the risk factor is main character and those who taken the challenges have really won good money and even lost too. If the mutual funds are invested in the performing company there is no question of loss. For example I have invested in the L&T mutual fund and for three years I am getting the regular income and even during the covid times the interest was credited in professional way in the first week of every month. What I feel that if the investment made in a company that deals with infrastructure and development surely that is the sure shot investments and the returns are guaranteed and no risk at all.
    K Mohan @ Moga
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #712707
    Though we come across a caption warning us that performance of mutual funds are subject to market risks and the same cannot be denied. However, we need to track down such companies showing consistent performance year wise and any investment made by investors on such financially strong based companies are sure to yield results better than fixed deposit of the banks. Risks are minimised if the mutual fund investments have been made after ascertaining their financial performance. Some of the shares such as L&T, Tata's, Wipros, Infosys etc would not disappoint you.
    With the frequent revision of interest - rest going in the downward trend in respect of fixed deposits of banks, it is not bad to park funds in some reputed mutual funds.

  • #712712
    I am sure all of us are aware of this disclaimer - "Mutual Funds are subject to market risk. Please read all Scheme related documents carefully before investing." Companies will promote their products and we are equally responsible to verify everything before making an investment and that's why there are such disclaimers. When you are investing, you must know about the schemes and if you are not aware of it and invest in it just because some big names are associated in promoting it then it's your negligence. The gain or loss will be entirely yours and so you must know what you are doing.

    "Life is easier when you enjoy what you do"

  • #712720
    Any investment programme is always associated with risk. Even your Fix Deposit in a Nationalised Bank also will have some risk. Even investing in real estate is also having some risk. So there is nothing which is risk-free.
    Mutual Funds are also associated with risk and the same is mentioned in every advertisement they give as a disclaimer. We may not understand the MF completely, but there are people who know about these funds and they are neutral. They will suggest the best among the available. We can get opinions from two people who are having knowledge in that field. Then your risk will be minimal.

    always confident

  • #712779
    The author has very rightly mentioned that all Mutual Funds are not doing good and one has to do some research and detailed analysis to go for the selected one. Blindly investing in Mutual fund will not help and there will not be the expected gain in it. Though it is thought safer to invest in Mutual Funds as compared to shares but still selecting a good Mutual Fund is a difficult task.
    Knowledge is power.

  • #712910
    In the beginning there was much craze for the Mutual Funds as they assured a risk free return. Now so many financial companies have come up and have floated a large number of funds and we require expert advice as in which fund we have to invest. Many people have lost in Mutual Funds instead of gaining and that is acting like a big discouragement for others. In such cases it would be more prudent to invest in the shares of some blue chip companies where though some risk is there but return is also commensurate. Of course, we have to take such financial decisions after due diligence.
    Thoughts exchanged is knowledge gained.

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