Advantages and Disadvantages of Investing In Mutual Fund
This time the question in front of investors is that where should they put their money so that they can grow. There is no power left in Real Estate, so the Share Market is full of ups and downs. Gold, the companion of bad times, has reached the heights at this time from where it is expected to fall. The rates of Fixed Deposit have also not been attractive and after Maturity they are also taxed. In such a situation, the Mutual Fund is saved, which is being promoted loudly. “Mutual Fund is right” This Slogan is visible everywhere these days.
Most people invest money in Mutual Fund thinking that the Fund Manager will be investing their money in such shares or Debt Fund which will benefit them a lot. About 2.29 lakh crore rupees have been raised in the entire country from accounts with Mutual Fund SIP. 7554 crores have been deposited in the month of June alone. This amount indicates how large the investment in Mutual Fund is. Even though the popularity of this medium of investment is skyrocketing, the truth cannot be ignored that it too has all kinds of risks and many funds have gone into losses.
Actually, the nature of investment in India is such that when people invest, they continue to do it in the same sector. Due to smoke advertisements and limited means of investment, investors began to find this investment a profitable deal. Due to the commission, investment advisors also started motivating people to invest in Mutual Fund and the scope of Mutual Fund Industry grew.
Now the figures are telling something else. According to a research, many Mutual Funds have already gone into losses and many have lost their money by trying to save IPOs. The market regulator SEBI was also forced to take tough measures due to the efforts of such fund managers to lure investors in deteriorating conditions. Mutual fund companies have introduced many funds to lure customers or to say that you are confused. This created confusion in the market.
In the past, the way more than fifty Mutual Funds’ money was put into the midst of an IPO of a subsidiary of a non-government bank, and after the loss of shares on the weak listing of the IPO, Mutual Fund House came out selling it to investors. Suffered extensively.
On the one hand, Mutual Fund companies claim that they invest customers’ money consciously and on the other hand it is true that they also invest for their needs and business relationships. The fund houses show vegetables at the time of investment, but in the event of loss or lack of desired profits, their emphasis is on the knowledge that investing in Mutual Fund is full of risks. This is also said in their advertisements.
If the claims of Mutual Fund companies are true, then a large number of funds do not run into losses. The fact is that fund managers also buy and sell the wrong shares at the wrong time. Not only this, many times their decisions have been taken for the sake of saving another financial institution, in which there is full scope for losses. It is not a matter of any fund manager to know the exact fluctuation of the stock market. Perhaps keeping this in mind, fund managers have issued funds with the promise of overtaking the indices of the stock markets, but these funds are also risky because most of their money is invested in small caps. These shares are twice as fast as half a quarter faster.
It is said about Balanced Fund that it is a mixture of debt funds and shares. Shares and debt do not go up and down together and there is a balance. But recently it was seen that when the market was climbing, the debt market was also climbing. In such a situation, the avdhaar of Balanced Fund gets pushed. Secondly, how much money will be invested in stocks and how much in debt, it depends on the fund manager. However, it is disclosed in some funds. It is important to know here that the higher the ratio of shares in a fund, the higher the risk will be.
Often, investors are told that the longer the investment period, the greater the profit. But this is not guaranteed because the profits in Mutual Fund ultimately depends on the fluctuations of the stock market. Every investor can decide whether a Mutual Fund is right or not. With the fund manager’s investment stance and the fund’s track record, not only does it know its ability to take risks, there is uncertainty and there is uncertainty if the market is |