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Is it worth investing in mutual funds?

Discussion in 'Mutual Funds' started by csnatu, May 12, 2012.

  1. csnatu

    csnatu New Member

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    Now a days all mutual fund investments are showing negative returns.So is it wise to take redemption and invest the amount in bank F.D. AT LEAST I WILL GET 10% RETURNS ON THAT AMOUNT
     
    csnatu, May 12, 2012
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  2. shabbir

    shabbir Administrator Staff Member

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    It all depends on your way to investment in MFs.

    People actually become very greedy when it comes to investing in mutual funds and don't think about redeeming when markets are high and so they actually make very little money in mutual funds. I suggest investing in mutual funds like you invest in stock and when markets are high you should be selling them and may be re-enter once again.

    Something that I do in my blue chip stocks like Nestle here - http://shabbir.in/profit-trading-investment/
     
    shabbir, May 13, 2012
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  3. rampra62

    rampra62 New Member

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    Basically I feel that we need to look at investments in Mutual Funds from a long term perspective, i.e between 3-5 years period and not like specific stocks.
     
    rampra62, May 15, 2012
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  4. sureshtsuryavanshi

    sureshtsuryavanshi New Member

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    I have totally different angle when it comes to mutual funds. Below are some points.

    1. If some body want to enter stock market and if he don't have any idea on it, then Mutual fund is the best way.
    2. If somebody is planning for the retirement goal and wanted to invest money over longer duration, then Mutual Fund SIP is the best way. Offcourse, retirement planning means longer duration of investment. Not only retirement, but investment for a longer duration.
    3. From Mutual funds we can have access to all the asset class. For example, Debt, Equity, Tax savings, Liquid, FMP, Gilt Funds etc. But, Definately one should understand and wisely invest in this categories of asset class by doing Risk Ananlysis and Duration Investment.
    4. I think this is very important. If somebody want to invest in stocks but don't want to involve himself in the jargons of stocks.

    Please share your views.
     
    sureshtsuryavanshi, May 15, 2012
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  5. shabbir

    shabbir Administrator Staff Member

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    I don't agree with you on first point. If someone don't understand the market he is more likely to make mistakes investing in mutual funds like making the right choice of fund. I would say mutual fund is safer way but not the best way. Best way is to understand the market and do some paper investment and then probably jump into real market.

    Perfectly right.

    When you have options, it is good to know and so I don't agree with your first point. Mutual fund investments are best when done with a Goal in mind like you mentioned retirement and things like those.
     
    shabbir, May 15, 2012
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