Why it doesnt make sense to invest more than 5 lakhs in mutual funds

Biker

Active Member
#1
I have been diligently investing in MFs since last few years and being from finance background and AMFI certified I believe I have better perspective of choosing investments.

I invested in one of the best funds (those were when at time of investing) after doing lot of research and going through research advisory services like valueresearchonline ,etc.

But even after 8 yrs my portfolio IRR comes around only 20% :mad:

If your investment amount is less than 5 lakhs and u cant directly invest in stocks then MFs is a best way. But considering 1.5% expense ratio for direct investments if ur investment value is more than 5 lakhs then u end up paying more than Rs 8000 as fees annually !!

And these research advisory services keep changing their stars (or grades or whatever) So when we look at 5 star rated funds then it looks lucrative but when the fund underperforms then these people simply changes their stars to another fund to fool new investors.

I think 20% irr can be easily achieved through fundamental research reports and good quality stocks. No point in paying high fees when nothing extra ordinary result is obtained.
 
#2
I have been diligently investing in MFs since last few years and being from finance background and AMFI certified I believe I have better perspective of choosing investments.

I invested in one of the best funds (those were when at time of investing) after doing lot of research and going through research advisory services like valueresearchonline ,etc.

But even after 8 yrs my portfolio IRR comes around only 20% :mad:

If your investment amount is less than 5 lakhs and u cant directly invest in stocks then MFs is a best way. But considering 1.5% expense ratio for direct investments if ur investment value is more than 5 lakhs then u end up paying more than Rs 8000 as fees annually !!

And these research advisory services keep changing their stars (or grades or whatever) So when we look at 5 star rated funds then it looks lucrative but when the fund underperforms then these people simply changes their stars to another fund to fool new investors.

I think 20% irr can be easily achieved through fundamental research reports and good quality stocks. No point in paying high fees when nothing extra ordinary result is obtained.
If the CAGR ( Compounded Annual )of 20 % per year is achieved on 8 years, it is a fantastic return, much more than the property investment would give on longer terms.

Smart_trade
 

Biker

Active Member
#3
If the CAGR ( Compounded Annual )of 20 % per year is achieved on 8 years, it is a fantastic return, much more than the property investment would give on longer terms.

Smart_trade
If Rs 2000 was invested during infosys ipo (1993) then that amount would have been around 78 lakhs now!
 

simplebuthard

Working as Trading Assistant. Hire me !!
#4
If Rs 2000 was invested during infosys ipo (1993) then that amount would have been around 78 lakhs now!
There is no point in this thought. So what are you trying to say, if we have 5 lakhs, we have to split it 2000 and invest in next upcoming 250 IPOs or currently listed 250 stocks? So that one out of that would make us fortune after 20 years?

That would absolutely not going to happen.

20% CAGR is industry best, not just in India, all over the world.

Don't think you can beat that easily just by fundamental research, reports etc.
 
#6
I have been diligently investing in MFs since last few years and being from finance background and AMFI certified I believe I have better perspective of choosing investments.

I invested in one of the best funds (those were when at time of investing) after doing lot of research and going through research advisory services like valueresearchonline ,etc.

But even after 8 yrs my portfolio IRR comes around only 20% :mad:

If your investment amount is less than 5 lakhs and u cant directly invest in stocks then MFs is a best way. But considering 1.5% expense ratio for direct investments if ur investment value is more than 5 lakhs then u end up paying more than Rs 8000 as fees annually !!

And these research advisory services keep changing their stars (or grades or whatever) So when we look at 5 star rated funds then it looks lucrative but when the fund underperforms then these people simply changes their stars to another fund to fool new investors.

I think 20% irr can be easily achieved through fundamental research reports and good quality stocks. No point in paying high fees when nothing extra ordinary result is obtained.
Dear
Can you enlight five - six good fund for next five years for investing 15 lacs of fund or suggest selection criteria for good funds to get the retun of and over the period of five years as 15% I know there will be no guarantees for returns also but I am regular investor in mf
Thanks in advace
From
Bharat
 

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