| Topic : investment |
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Banking & Insurance Professionals |
Investment Hub |
Financial analyst |
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Activity:
Question posted: 08 16 2010 05:21:34 +0000,
8 answers, 432 views, last activity
09 09 2011 18:10:33 +0000
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Why invest in an equity mutual fund (MF) when one can easily create a portfolio of some of the finest stocks in the market on one’s own accord; simply by investing in stocks which are constituents of the broader market indices like the Sensex or the Nifty?
Mr. Arun, The simple answer for your question is "LACK OF PROPER KNOWLEDGE" among direct investors. Otherwise retail investor also get handsome Return on their investment. Same as like as fund manager invested their money in broad market Indicies through equity fund schemes. Self analysis regarding to any stock is much required at the time of investing in same.
For investment in Broader indices you must have some fundamental knowledge of particular stocks which is listed on BSE and NSE and you will have to keep consistent watch over there. So, i would say invest in equity MF scheme is far better than invest in finest stock in sen sex. There are lots of advantages of investing in Equity MF scheme like, you do not have to worry about fluctuation takes place in market, no worry about timings, no worry about buy or sell etc due to these reasons which highly impacted our personal life too and get good time to focus any other thing or any other schemes which we can say ultimate opportunity cost.
i think equity schemes are far more risk averse than the market indices.. It is also true that equity schemes have generated far more revenue in the recent past due to the consistent monitoring by fund managers who encash on superior stocks/sectors rather than following a single point approach of a market index. it is therefore prudent for a consumer/retail investor to invest in equity schemes than build a portfolio through a market index. thanks deepa for the reference
i agreed partially, because all depends upon the manager, his knowledge about the market, its trends, the stocks he is selecting to invst funds. I had a very bad experience when i had invested with Bajaj Allianze Mututal Funds. I paid three installments for three yrs, after 3 yrs my fund value is half of what i had invsted. they simple refuse to accept the their responsibility of incorrect fund management.

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