Build your professional network on facebook via our app Go to app
 
<< Prev  3 of 24 in Topic  Next >>
Topic : investment
  Rate : 
 
Industry : Equity Research/Analytics
Functional Area : Equities
Activity: Question posted: 08 16 2010 05:21:34 +0000, 8 answers, 432 views, last activity 09 09 2011 18:10:33 +0000
 
 Refer 189
Share
 
 
 
 

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?

 
 Top Answer :
Rating : +1 

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.



  Answered by     Ankit Gandhi, MBA student, Omegan School of Business  | 09 09 2011 18:10:32 +0000
[ Delete ]
[ Edit ]
Not Rated

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.

  Answered by     Kiran Sethumadhavan, Partner, Sunrise Associates  | 08 17 2010 03:08:31 +0000
[ Delete ]
[ Edit ]
Not Rated

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

  Answered by     NATTERAJA R. ARIKRISHNAN, GM-Projects, Bentec Electricals & Electronics Pvt. Ltd  | 08 16 2010 18:18:05 +0000
[ Delete ]
[ Edit ]
Not Rated

Thanks for sharing the valuable information Ms. Deepa Salunke,

I think equities have less risk factors from the market while comparing to the stocks.

 

  Answered by     Rajendra , Manager Accounts, Approva Systems Pvt Ltd  | 08 16 2010 08:01:26 +0000
[ Delete ]
[ Edit ]
Not Rated

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.

  Answered by     Nitin M Aras, Head/VP/GM-Tech. Support, ODTIN Food Solutions Pvt Ltd  | 08 16 2010 07:58:41 +0000
[ Delete ]
[ Edit ]
Not Rated

Thnaks to Arun and Deepa....agree with you... specially thanks to Arun, link provided by quite informative.

  Answered by     Deepa Salunke, Associate, SBI  | 08 16 2010 07:49:27 +0000
[ Delete ]
[ Edit ]
Rating : 0 

I think the equity schemes have generated far superior returns than index funds and market indices. People feel equity are free from market risks. More over invest funds are determined by the exchange rates and equity scheme is by the manager which they feel is less liquid. 

  Answered by     Arun Kumar K, Security/ Equity Research Analyst, Thomson Reuters  | 08 16 2010 07:34:58 +0000
[ Delete ]
[ Edit ]
Not Rated

I would like to refer the below website for this answer. Please go through this & comment on the same. http://economictimes.indiatimes.com/quickiearticleshow/6314159.cms

 
Leading Recruitment firm
Accounting Manager Jobs in Bangalore
Electrical Design Manager (Automation) jobs in hosur
PLC Programmer Job in Tamil Nadu.
Viewers also viewed
Fundamental Analysis vs Technical Analysis
 
346 referals 13 arguments, 461 views
HI, My name is shwetha working as HR in an company caore area is recruitment, my qualification...
 
1227 referals 7 votes, 295 views
We all know that India has too many people and this is bad for our economic well-being . Mention...
 
608 referals 25 arguments, 4937 views
more...  
Unanswered Questions (16)
Friends.. I am little bit confused about this, whether I should go for an NGO or not as my...
 
0 referals 0 answers, 0 views
what is the role of r d ? 
 
1 referals 0 answers, 0 views
Everyone in India looking for secure the own position and headed towards stability in career....
 
0 referals 0 answers, 0 views
More From Author
Banking surely has come a long way. You don’t have to visit the musty branches and brave serpentine queues anymore. The ATM can take care of most of your needs. If at all you need to visit a branch, smiling faces with pleasant manners would...
The Battle for the 3rd Element The Third Element could soon siphon off $10.4 TRILLION in oil revenues… and replace 148 billion barrels of black gold. The U.S. government is quietly spending billions to control this rare substance as a matter of...
Right now, men are meeting in private quarters and plotting the biggest “financial coup” in history. Their endgame? They want to lay the foundation for a new global currency... to replace the dollar!   This story takes us wide and far before...
more...