Investment in Mutual Fund

Dear lenkajyoti, Investment in mutual fund is not as risky as investing directly in the markets. The Disclaimer is part of SEBI initiative to educate investors and should be welcomed. Because, most people consider Mtuual Funds as another face of Direct Investing. Mutual Funds are much safer than direct investing and give more returns simply due to the fact that all funds are managed by competent professionals and the results are there for all to see. In fact, mutual funds are better than Insurance in terms of returns because in Insurance, you are charged at least 40-50% as allocation charges, premium charges, and various charges with the net result, your capital is straight away is down by 40%. That is why, ULIPs are sold aggressively. Srikanth

Actually, investment in MF is less risky than securities, cos investment in securieies is directly linked with market risk, it fluctuates dramatically if market had a big change. But MF is invested in different kinds of instruments, it can be invested in securities, treasury bonds, national debt etc at the same time. So its risk has been scattered. But unfortunately the MF I bought dropped from 1.00 about 1 year ago to 0.52 at present.