With financial scams being commonplace, and stock market again rising to high levels, is there scope for Fund managers to "play" with our money and leaving us high and dry?
Or would it be safer to invest directly in equity?
I am not savvy in these matters. Hence am looking for good, genuine advice from knowledgable people.
2006-09-26 23:51:25 · 12 answers · asked by Anonymous in Business & Finance ➔ Investing
No investments are without risk. Mutual funds offer a diversity of investments that tends to mitigate the risk that is inherent in owning just one or two stocks. Some mutual funds are more risky than others. A fund that offers a broad diversification of assets is not as risky as one that invests in "growth stocks". A fund that invests in debt instruments is not as risky as one that invests in stocks. But with more risk comes the potential of more reward.
I do have to mention that many Indian stocks are selling at very high premiums, even after the May correction, so there is risk of another correction. But there are opportunites due to the rapid growth of the economy.
2006-09-27 02:24:40 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Gone the early yrs like in 90`s there were so many scams , now the SEBI is the best gorverned org in the world so there are so many FIIs registered with india.
& comming back to UR question on Fund mangers , yes there are cases but not even a handfull.
These days the markets trade around 30K to 35K Crs avg , be rest assured not even the biggest Fund house can shake this market.
In such a big market cases do happen it doesnt mean that the MF`s are bad , I would advise u route UR hardearned money through MF`s if wanna have a peace of mind & more over U said ur not savy in the markets .
Trading in markets is news or speculation based most of small investors burn their money in no time .My personal exp is I burnt my hand in multiple lacs in the last crash , U own sometimes u learn things the hard way.
No doubt the best fund houses have given a return of 2000% in ten yrs thats not bad at all , & more over tax free.
Pals comments are welcome .
2006-09-27 00:12:09 · answer #2 · answered by ACE 2 · 0⤊ 0⤋
Reasonably safe, if you keep tracking your investment occasionaly, say once or twice a month. Keep a watch on the sensex. Very few MF can beat the broder trend of the sensex & Niffty. So if the sensex is going down regularly, its time to quit. Also my choice is to invest not in growth funds, but dividend payout option funds. This way you keep booking your profits, and in case the market crashes,loss will be much lesser than that of growth fund where the profits are reinvested in theame fund.
2006-09-27 01:24:04 · answer #3 · answered by Aditya 3 · 0⤊ 0⤋
Mutual Funds are the safest risky business.
If you don't have know how of the Stock market or don't have the time to follow up the market, then Mutual Funds are the best option to invest and have benefitted from the market ups.
2006-09-26 23:57:32 · answer #4 · answered by Abdullah A 3 · 0⤊ 0⤋
If looking for safe option better invest in real estate in Gurgaon near Delhi which will give you better return than mutual funds.
Further, instead of mutual funds you should invest in companies like INFOSYS.
Stock market has already touched a peak of 12300 Points and it will not be safe to invest at this level.
2006-09-28 06:46:51 · answer #5 · answered by Anonymous · 0⤊ 0⤋
if you are not savvy, then you should know how to trust someone first. this is how it is done in india.
trust a good banker (DIRECT ONLY ) like HDFC, UTI, ICICI - and let them handle your portfolio - these guys are better than sharekhan in terms of trust levels for scams and guidance / advice, and others are private players, bankers are controlled, and banker's agents are also private, hence approach Direct only.
After that, keep checking the NAVs directly on the websites - moneycontrol.com, CNBC etc . .. without depending on the banker' s reports sent regularly., and you can survive and gain.
2006-09-27 00:06:57 · answer #6 · answered by pandchick 2 · 0⤊ 0⤋
The only safe investment is Real Estate & Federal Savings Bonds now a days.
2006-09-26 23:52:48 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Investing in mutual fund is also risky because it also depend on share market & NAV based. In MF less risk compare than share & portfolio manager take action which also qulified. If u take risk u earn mony oterwise pl switchover in govt securities which give 8% but it come 4-5% (-GDP%)
2006-09-27 00:57:34 · answer #8 · answered by prashant_kanpur 2 · 0⤊ 0⤋
since india is considered a emerging market it can have huge returns or huge loses as the saying goes you need money to make money
2006-09-28 18:59:14 · answer #9 · answered by blopyblopy 1 · 0⤊ 0⤋
stock market investment is not safe
2006-09-27 00:06:17 · answer #10 · answered by Anonymous · 0⤊ 0⤋