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1/14
* Should beginners invest in Mutual Funds ? *
"Mutual funds are subject to market risks . Pls read all scheme related documents carefully before investing " .
We hear this every time we see an advt , but do we follow it ?
Then why cry once we lose our capital ? +
* Should beginners invest in Mutual Funds ? *
"Mutual funds are subject to market risks . Pls read all scheme related documents carefully before investing " .
We hear this every time we see an advt , but do we follow it ?
Then why cry once we lose our capital ? +
2/14
MF basically is a trust which collects money from different people & this fund is managed by a professional Fund Manager. The Fund manager then invests this money into different asset classes to earn income .
Thus their role is pivotal in the performance of the fund. +
MF basically is a trust which collects money from different people & this fund is managed by a professional Fund Manager. The Fund manager then invests this money into different asset classes to earn income .
Thus their role is pivotal in the performance of the fund. +
3/14
Fund management could be active or passive.
If actively managed it would depend on the manager to pick the components of a portfolio as compared to passive wherein mf is based on an established index & its underlying components. +
Fund management could be active or passive.
If actively managed it would depend on the manager to pick the components of a portfolio as compared to passive wherein mf is based on an established index & its underlying components. +
4/14
Either ways , a fund manager can ensure great returns or could probably lose money due to a lapse on their judgement. This is what makes it so risky .
We all are humans , no shame in being wrong !!
But then again it is our hard earned money !
Quite a pickle!
Either ways , a fund manager can ensure great returns or could probably lose money due to a lapse on their judgement. This is what makes it so risky .
We all are humans , no shame in being wrong !!
But then again it is our hard earned money !
Quite a pickle!
5/14
Now I don't want to complicate things by getting into details of the working of MF's . So let that be. Let us focus on what we need to do to ensure our safety ,if at all we plan to invest in MF via SIP .
The following points need to be kept in mind . +
Now I don't want to complicate things by getting into details of the working of MF's . So let that be. Let us focus on what we need to do to ensure our safety ,if at all we plan to invest in MF via SIP .
The following points need to be kept in mind . +
6/14
* Check the Fund manager credentials online.
* Past performance is not always an indicator as underlying circumstances change .
* See if Fund manager has skin in the game aka whether they themselves have invested money in that fund. That would be a good indicator . +
* Check the Fund manager credentials online.
* Past performance is not always an indicator as underlying circumstances change .
* See if Fund manager has skin in the game aka whether they themselves have invested money in that fund. That would be a good indicator . +
7/14
* Don't go only by educational qualification . See the performance of portfolio along with other peers & the experience of the Fund manager altogether . Sometimes circumstances are such that returns won't be much . Capital protection is of paramount importance. +
* Don't go only by educational qualification . See the performance of portfolio along with other peers & the experience of the Fund manager altogether . Sometimes circumstances are such that returns won't be much . Capital protection is of paramount importance. +
8/14
* Pls don't follow blindly recommendations of telegram ,watsapp , money control , friend , or any SM channel for that matter !
People are all here to sell . We are their " prospective clients " .
* MOST ratings online are paid & sponsored. . Yeah !UGLY TRUTH. +
* Pls don't follow blindly recommendations of telegram ,watsapp , money control , friend , or any SM channel for that matter !
People are all here to sell . We are their " prospective clients " .
* MOST ratings online are paid & sponsored. . Yeah !
UGLY TRUTH. +
9/ 14
* Most analysts on TV don't even beat index benchmark ! So don't keep buying based only on recommendations.
* Sab ganda hai par dhandha hai yeh !! Loosely meaning Everything is fair for earning (their) bread and butter .
So what do we do !!!
Easy peesy +
* Most analysts on TV don't even beat index benchmark ! So don't keep buying based only on recommendations.
* Sab ganda hai par dhandha hai yeh !! Loosely meaning Everything is fair for earning (their) bread and butter .
So what do we do !!!
Easy peesy +
10/14
* TURN TO INDEX FUNDS *
They follow a passive investment strategy & hence are safer . (Hey ! You know the meaning of this now . Yay!
)
They mimic the composition of financial market index . So Nifty and Nifty 50 index funds work best . +
* TURN TO INDEX FUNDS *
They follow a passive investment strategy & hence are safer . (Hey ! You know the meaning of this now . Yay!
)They mimic the composition of financial market index . So Nifty and Nifty 50 index funds work best . +
11/14
Ideally begin by SIP to only index funds . That's all ! Meanwhile learn & learn somemore!
For experienced ones, lumpsome strategy will be more beneficial ( has its risks but obviously! ) .
Too many cooks spoil the broth . Same goes for MF investments .
A few pointers. +
Ideally begin by SIP to only index funds . That's all ! Meanwhile learn & learn somemore!
For experienced ones, lumpsome strategy will be more beneficial ( has its risks but obviously! ) .
Too many cooks spoil the broth . Same goes for MF investments .
A few pointers. +
12/14
* Don't get swayed by MF recommendations.
*Sit and do some research ( internet jai ho!) before investing. It is your hard earned money!
* 2-3 MF are enough actually . People end up purchasing over 5 MF's . IMHO not needed at all . Complete waste .
+
* Don't get swayed by MF recommendations.
*Sit and do some research ( internet jai ho!) before investing. It is your hard earned money!
* 2-3 MF are enough actually . People end up purchasing over 5 MF's . IMHO not needed at all . Complete waste .
+
13/14
" I did everything , yet my returns are in negative ! "
That maybe because of the Holding period . A decade is required to show good returns . The past 2.5 yrs haven't been good & hence obviously even good funds would have underperformed .
So be patient. +
" I did everything , yet my returns are in negative ! "
That maybe because of the Holding period . A decade is required to show good returns . The past 2.5 yrs haven't been good & hence obviously even good funds would have underperformed .
So be patient. +
14/14
I hope these #InvestmentPointers help you as a beginner .
#Investing is not too complex but neither is it simple as it is a combination of knowledge & temperament . We need to have both & luck to become #FinanciallyIndependent
This is MY opinion.
Janhit main jaari !
I hope these #InvestmentPointers help you as a beginner .
#Investing is not too complex but neither is it simple as it is a combination of knowledge & temperament . We need to have both & luck to become #FinanciallyIndependent
This is MY opinion.
Janhit main jaari !
