Mutual Funds Investment : Wastage of money

HI,

From the past few years my parents have been investing in mutual funds like ICICI, Birla but they have not benefited at all. Recently, my fathe also invested in Sbi Mutual fund . Initially, he got some dividends but after that it all stopped.

So,I strongly feel mutual funds are wastage of money and time.

Shravanicool

Yes, I too agree with you, its simply waste of money buying MFs.

I tend to disagree on this. You need to contact a financial advisor who can guide you which MF to choose. If you went for sectoral funds, risk is on the higher side. But when it is largecap equity diversified fund, it is bound to get you good returns such as DSP top 100, HDFC top 200 etc. And one more thing I have observed / going to practise is to book profit when I reach my goal of 15-20% returns instead of investing for years in MF.

Thanks,

RB

Originally Posted by shravanicool

HI,

From the past few years my parents have been investing in mutual funds like ICICI, Birla but they have not benefited at all.
So,I strongly feel mutual funds are wastage of money and time.

Shravanicool

Originally Posted by Devinaren

Yes, I too agree with you, its simply waste of money buying MFs.

Going outright and saying that investing in MF is a waste is negating many investor sentiments even in this forum.

Dear friends, each of us has a risk taking capacity and a set of goals. a person who is happy with 6-8% will be happy with FD's. when you are trying to invest in MF's, there are many criteria to be looked into. there are open end, close end, diversified, sector oriented.

when the whole market was not performing, you cannot expect miracles when the mutual funds are also governed by the market performance.

Apart from this there was entry and exit load. now there is a little relaxation.

last but not least, there is a fine print, that gives you warning do read, judge your risk appetite and invest.

There have been good yielding mfs and not so performing ones too.

if you do not have much idea, do consult a good financial consultant, who will guide you based on your requirement and risk appetite.

Investing in broad based mutual funds have not worked over the past decade or so. Targeting certain sectors is a better strategy since your performance will not be impacted by under-performing areas of the market.


Happy investing
Devi Naren

Devinaren,

this is what i meant. i completely am against in misleading people with our opinions, though it is a public forum. though the onus of decision making is on the original poster, there is a percentage of moral responsibility, according to me, but you as a Financial consultant(? assuredgain) may differ.

that is why i requested to please refrain from giving vague comments like the on in #2.

most of the people who look at these threads are people who would like to make some money out of playing the market.

Sectoral based MF's have given good returns. and some of the old MF's are still doing good.

(Disclaimer..i am long term investor. i do not do mf's nor trading)

Finally, it is the decision of the investor to see what works for him/her - wheter it's sectoral funds or diversified funds. May be sectoral funds worked for you, may be diversified fund worked for me. it's just my opinion. You can go through materials in valueresearchonline.com and such financial sites. The general idea they give is if you are sure of a sector that it will bounce back, go for sectoral fund otherwise go with MFs with diversified fund.

Again, all these are opinions - It is upto the investor to decide. what worked for one maynot work for other. just because one got losses in MF doesn't mean that MFs are waste of money.

Thanks,

RB

MF are not a waste of money for sure.One has to be patient to reap the benefits of MF.A long term investment in MF gives about 150% returns.But as the MF documents mention" Subjected to market risk" and one must never judge MF when the market is low.