A small part from my daily office journey :
Pritam: Dude may I ask you a silly question ?
Sanjib: LOL ;)?? sure why not???
Pritam: Have you got a chance to read my previous post on mutual fund?
Sanjib : No????? Hmmm read . But you have mentioned only Advantages of mutual fund. Why not any disadvantages of mutual fund in our writings?
Pritam: Ok, Good point . Sure I will try to cover in my next post on mutual fund.
Dude as discussed in our daily journey I am trying to convey some disadvantages. Hope readers will appreciate the advantages as well??????
- Mutual fund return is not guaranteed and it is dependent on market condition. But as per the present scenario we can see its actually returning the value more than your Fixed Deposit or any other savings scheme if you have.
- Mutual fund companies will continue to charge fees even if the selected fund gives negative returns.
- Buying and selling is only applicable at the end of the day, Not during the trading hours.
- Mutual fund companies keep lump sum amount of cash at hand to pay the investors just in case they sell the units due to various reasons. It means they are not investing all the amount in asset whatever they have in their hand.
You have to be aware of the disadvantages to make sure that you don’t fall into the traps in this system. Rather well informed knowledge will give you clearer picture and help to choose the right direction. Since the advantages compared to disadvantages are much much higher (at least to me) one should definitely try to grow habit of savings, reading about mutual funds and ultimately invest in right funds at the right time. Try to increase your asset and reduce your liabilities. Please note that asset is anything which makes you money and liability is others which eats your money. So don’t invest in buying flats or cars as these does not increase your asset. It will not make you money after 10 years. If you are able to understand this basic difference you will be millionaire one day. Till then keep reading, commenting, sharing and investing in mutual funds 🙂 .
To invest in Mutual fund please dial in below number or drop me a mail :
Cell number: (+91)-9051732839, (+91)-8013774767(Whatsapp)