Mutual Fund Investment is it worth?
@chaitra001 (3278)
Bangalore, India
December 28, 2010 9:54am CST
Hi friends.. is it worth to invest on Mutual funds which say that they will give double or nearly 3-4 times of our investment.. I dont have much knowledge about how they can give us that much? and its really a reputed Mutual Fund company.. Please share your experience and Opinions..
1 person likes this
6 responses
@veejay19 (3589)
• India
29 Dec 10
I had invested in Mutual funds and had around 8 to 10 of them in top equity funds.Earlier i had invested in numerous debt funds and was getting a good monthly income.However i switched over to equity funds and was earning good dividends and also saw my mney increasing. However due to the market crash i saw quite a good amount of my money vanishing and now i have just three MF`s left. I have literally been wiped out and am in serious financial difficulties.Equity linked M
F`s are dependant on the share market ,therefore there is grave risk of losses.at the same time when the market is bullish, ie when it is doing very well then the NAV`s of the funds also increases and so does the value.You should consult a financial expert and take his advice before investing in them.
@veejay19 (3589)
• India
30 Dec 10
dear chaitra, it is difficult to say which is better because both are interlinked.If you wabt safe, sure, low risk but low returns then it is better to go for close ended debt Mutual funds.These are not equity linked,ie not dependant on the share market.If you want high returns then go for open ended equity linked MF`s and especially the growth option which shoot uo very high and quickly too.There are also the dividend option where the MF sends you the dividend once or twice a year. Our friend life has correctly said that you will have to be KVC ( Know Your Client ) compliant fro Jan 1st 2011.Best thing is discuss with your financial expert as he will be able to guide you as per your needs.As for the share Market,it is definitely very risky but at the same time very lucrative if you know where to put your money in. Also don`t put your savings into shares as you may lose everything.Only if you have surplus money which is lying idle then go for the share market.Here too better consult a reliable broker whom you know and trust and who can guide you.You can also do it yourself through ICICIdirect.com or Sharekhan.com and many others. I am doing on my own through ICICIdirect.
@chaitra001 (3278)
• Bangalore, India
30 Dec 10
Yes life is having good knowledge about it.. she said that she is certified in this.. so i got one more friend who can help me in proper investment along with you.. Thank you uncle for the suggestions..
@chaitra001 (3278)
• Bangalore, India
29 Dec 10
Hi vijay uncle.. so you have much experience in investin money.. so which is better do you feel investing in Mutual Funds or in Share Market.. Please guide me..
@bird123 (10643)
• United States
31 Dec 10
People who invest have lost more money trying to get rich quick than anything else. People who truly make money investing are getting rich slow. 3 to 4 times your investment in a short time is getting rich quick. You must ask yourself. If the returns are really that good, why isn't everyone investing in them????? A person can make money with mutual funds, CHECK OUT LOTS OF THEM!!!!! Look for the stable ones making money year after year beating the index funds. Most mutual funds can't beat the simple index funds yet charge big fees. Do your homework first. Visit lots of mutual fund companies. Ask a million questions from all of them. You will get a feel for the direction you should take.
@chaitra001 (3278)
• Bangalore, India
1 Jan 11
Hi bird.. Thanks for the suggestions.. Yes as you said I need to do lots of homework to understand how it works before investing..
Happy New Year..
@Sreekala (34312)
• India
31 Dec 10
Hi dear,
I don’t have any knowledge in this field dear. But I am glad that ‘life’ has given much details and I hope you are satisfied with her explanation. 
I don’t have any knowledge in this field dear. But I am glad that ‘life’ has given much details and I hope you are satisfied with her explanation. @chaitra001 (3278)
• Bangalore, India
31 Dec 10
Hi Sree.. Yes dear she has given me a very detailed information so we can take her help to learn about it..
.. Yes dear she has given me a very detailed information so we can take her help to learn about it..
@TeamCholent (2832)
• United States
28 Dec 10
No real investment company can assure you of such high returns. With all investments, the higher the potential return the greater the risk of a loss. I would suggest only investing that which you can afford to lose and keeping an eye on the fund, just cause the company has a good name doesn't assure it of such crazy returns. How long term are you talking about before you will see the 3-4 times profit?
@chaitra001 (3278)
• Bangalore, India
29 Dec 10
Hi TeamCholent its around 5 years plan.. So thats why I am wondering..It was explained to me by an agent..
@divitiae (193)
•
28 Dec 10
I would be very surprised to see that level of return on a mutual because the point is to spread risk over several shares so you get a more average return than buyiung individual companies.
I am not familiar with funds publishing expected returns, are you looking at historic returns?
What is the epic code for the fund?
@chaitra001 (3278)
• Bangalore, India
29 Dec 10
Hi divtiae.. I am not familiar with the terms historic returns and epic code.. Could you please explain what are those terms..
@ashwinanand (582)
• India
28 Dec 10
Yes mutual funds s give you that much as you have mentioned but it differs with various companies its according to the rates that are are fixed by them and i dont
know much of it but i have heard people saying that the when we deposit cash they use
put it on rotaion or use that cash to give loan to people or just put it into a bank so that they get some interset for that and than they pay you a amount from that interest.I guess this is the method that these copanies follow but i am not 100% sure about it but have heard lots of people saying this so i just thought i could put
up what i know.Hope tihs was helpful.
@chaitra001 (3278)
• Bangalore, India
29 Dec 10
Hi ashwinanad.. Thanks for sharing the information you know about mutual fund.. I just want to know more about it before I invest in it..
