There was a time not long ago when the share markets were volatile when the mutual fund sellers advocated that investors should switch to debt mutual funds claiming that debt funds were safe. They sold debt funds as safe investments, till IL&FS defaults hit the market. Suddenly it transpired that many mutual funds had invested… Continue reading Debt Funds Anyone?
We have already seen that Indians have a low risk appetite and that there are strong and valid economic reasons for the same. (Click here for the article). Mutual Fund is not a long term product There is another issue on which the financial planners are misleading the common public. They have been pushing mutual… Continue reading The Layman is a Prudent Financial Planner
The Fact – Indians prefer low risk investments Savings data compiled by Central Statistical Office (CSO), Government of India, and published by the Reserve Bank of India in its Handbook of Statistics, shows that without exception since the time they started publishing the data from 1970 till date (48 years, now), Indians have always put… Continue reading This is a FACT not an Opinion
The newspaper Mint reported on 4 December 2018 (MFs extend loans to listed entities against shares in promoter firms by Jayashree Uphadhyay and Gopika Gopakumar) that some of the mutual funds have extended loans directly to companies. Some of mutual funds that have been mentioned in the article are: Franklin India Ultra Short Bond, Reliance… Continue reading Are mutual funds banks?
First the mutual fund advisors told us that mutual funds earn a lot of money, implying that ALL mutual funds earn a lot of money. I showed you they do not. Read why they do not click here. Then the mutual fund advisors told us that the equity mutual funds will bring very high returns.… Continue reading To SIP or Not to SIP the Risk
Earlier I had written that debt funds are not as safe as they are made to seem by those selling mutual funds. Read the article https://www.helpindiainsure.iistpune.in/2017/09/28/look-where-debt-fund-money-is-invested-by-mutual-funds-and-they-say-debt-funds-are-not-risky/. Many of my mutual fund friends got in touch with me to tell me I am wrong. They insisted that debt funds are safe. Why then are debt funds showing… Continue reading The Proof is Here on Debt Funds
We all know that the stock market prices sometimes go up and sometimes down. We also know this share price volatility (See https://www.helpindiainsure.iistpune.in/2018/01/18/and-the-tortoise-wins/ ) can result in a loss to customers who hold the shares for a long time. But why do the financial advisors suggest that you hold the share for a long time… Continue reading What Happens when Stock Markets Crash?
One of the ways in which a restaurant owner gives confidence to his customers is to show his customers that he and his family consume the same food that is served to the customers. When he does that the customers are certain that the hygiene is of an acceptable standard, that the ingredients that go… Continue reading Don’t Eat the Food that the Restaurateur Doesn’t Eat
We have been pointing out on this Blog (See: Where Indians Save) as well as in our training programs see our website www.iistpune.in that Indians are low risk investors (not low returns mind you). Given a chance Indians would prefer to invest and save in such a manner that their capital is protected. This is… Continue reading The Case of Negative Cash Holdings
So you thought that there is a bull run on the stock market and therefore buying equity mutual funds will fetch you high returns. Think again. But first let us quantify the equity bull-run in the past one year. One year ago, on 3 August 2017, the SENSEX closed at 32237 and on 3 August… Continue reading Bull Run or Bear: It is never safe to invest in mutual funds
