Common Myths About Mutual Funds - Busted | Learn With ETMONEY
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- Опубликовано: 31 июл 2024
- In the past 10 years, mutual funds have really grown in popularity. But despite this growing popularity, many misconceptions make people stay away from mutual funds
In this video, Shanka Nath of ETMONEY examines some of these misbeliefs and fabrications as we look to give you the real picture and make you more confident about investing in this essential financial product.
What’s included in this video?
00:00 INTRODUCTION
00:41 MUTUAL FUNDS ARE FOR EXPERTS
01:28 MUTUAL FUNDS MEANS INVESTING IN STOCK MARKETS
02:55 MUTUAL FUNDS ARE FOR LONG TERM INVESTMENTS
03:43 MUTUAL FUNDS ARE RISKY
04:56 MUTUAL FUNDS GIVE A RETURN OF 12 TO 15% EVERY YEAR
06:39 YOU NEED A LARGE AMOUNT OF MONEY TO INVEST
07:23 LOWER NAV IS BETTER THAN HIGHER NAV
08:57 REGULAR PLANS ARE CHEAPER THAN DIRECT PLANS
10:43 IT IS BEST TO INVEST IN THE PREVIOUS YEAR’S BEST PERFORMING FUNDS
12:19 MUTUAL FUNDS REQUIRE LOTS OF DOCUMENTATION
👉MUTUAL FUNDS ARE FOR EXPERTS
For some reason, many people believe that mutual funds are only for people who have a solid understanding of the financial markets.
Mutual funds are not for experts only and are the perfect tool for beginners to participate in India’s growth.
👉MUTUAL FUNDS MEANS INVESTING IN STOCK MARKETS
When people say mutual funds they are almost always referring to investing in the Indian stock markets or in a more formal context, they are referring to equity mutual funds.
However, equity mutual funds are just one part of the mutual fund industry and there is quite a large non-equity category where almost 50% of the industry’s 31 lakh crores is invested.
In other words, mutual funds allow investors to participate not only in the equity markets but also in the fixed income market
👉MUTUAL FUNDS ARE FOR LONG TERM INVESTMENTS
Mutual funds are an excellent investment option for long-term goals. But there is no reason to not use mutual funds for your short-term goals as well.
General rule:
Short-term goals - less than 3 years - opt for a debt or hybrid mutual fund.
Long term goals - 3+ years - invest via an equity mutual fund
👉MUTUAL FUNDS ARE RISKY
The universal rule is -- all mutual funds carry some amount of risk but not all funds are risky
For example - overnight and liquid funds carry a very small amount of risk .. however equity funds and especially small-cap and sectoral funds have a much higher level of risk
👉MUTUAL FUNDS GIVE A RETURN OF 12 TO 15% EVERY YEAR
Many people have a misconception that all mutual funds offer a return of 12 to 15%.
And while mutual funds have the potential to do a lot better than fixed deposits over a longer duration but under no circumstance can a mutual fund guarantee performance of any kind .. whether the fund is an equity fund or a debt fund
👉YOU NEED A LARGE AMOUNT OF MONEY TO INVEST
It is often believed that mutual fund investments can be done only in the lumpsum mode
and mutual funds are perhaps the only financial instrument that allows investing with amounts as low as a hundred rupees
👉LOWER NAV IS BETTER THAN HIGHER NAV
This is something we hear often and we find it a bit difficult to demystify this assumption purely because of our own ingrained principle that a lower price is better than a higher price but it doesn’t really matter in mutual fund investing.
👉REGULAR PLANS ARE CHEAPER THAN DIRECT PLANS
Since 2013 mutual fund companies have been offering two variants of every scheme - a direct plan and a regular plan
A direct plan retains all characteristics of a regular plan but comes with one big advantage: it does not include any distributor commission. And as a result, direct plans display a higher NAV as compared to regular plans
👉IT IS BEST TO INVEST IN THE PREVIOUS YEAR’S BEST PERFORMING FUNDS
Many mutual fund investors believe that funds that have performed well in the past are likely to continue their good performance in the future. This is most definitely not the case.
If you should not chase previous year’s best performers then what can you do.
1. Invest in an index fund - you need not be bothered about having selected a potentially poor-performing actively managed fund
2. You change your fund selection criteria and lay more emphasis on the fund manager’s investing style or portfolio rather than just looking at past returns
👉 MUTUAL FUNDS REQUIRE LOTS OF DOCUMENTATION
Mutual funds need very little documentation.
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Its not 2003 but 2013 was the time when mutual fund AMC started offering Direct and regular plan schemes.
Great beginner video! Although your data-heavy videos are great for people with more financial knowledge, please keep making these basic videos for those just starting out on their investing with no knowledge of finances.
I too , participated in sip .
Monthly 6000.
Humble voice loaded with enormous info
ruclips.net/video/PeQEl7ki3v4/видео.html
Very well made and presented video. Thank you.
Everytime I watch your video, I learn. Thank you.
Nicely pointed all points
Love your voice , presentation and Knowledge
Great education sir, carry on
Really helpful ❤️
Perfect explanation 👌👍
ETMoney App n team is very best....Shankar sir analysis is very simple.
Thank you ET money for your videos, i have just begun my journey into investing at 55😊 and I'm a happy student at the free ET gurukul(as i call it)
Most welcome. Glad you are finding out content useful
Very good content as usual
Very helpfull...
Beautiful info..keep it up
How informative these videos are! Amazing work ✌️
Glad you like them!
Quality content everytime. 😊
ruclips.net/video/PeQEl7ki3v4/видео.html
What about the dividends in mutual funds? Since the stocks are held by the AMCs how are the dividends earned on the stocks distributed?
Or whether or not the dividends are paid out to the dividend holders?
Have had this question for a while now unable to find the answer. It would be great if ET Money channel can make a video regarding the same.
Thank you
Excellent video . Wonderfully presented by Mr. Shankar .
Thank you very much for your kind appreciation, dererishi
Amazing content.... Thanks a lot for teaching us.... I would love to see a comparison between smallcase and mf..
What are the best ways of investing in silver. Please do a video I can't find it on our channel. Thanks in advance.
Thanks a lot sir for such information 😊
Most welcome
Thanks for informative video as always. Can you let me know when can nri based in Europe start using et money app?
Eye opener
Thanks
Hi sir i have a one question
If stock market crash or fall same debt fund also fall or only equity's fund fall
In a growth fund, at what point of the year the profit is reinvested?
Could you please name some mutual fund that invest in commodity..?
Sir, plz make video on liquid fund how it's low risk and low volatile
Very well structured topic.Lthank you.
Can investment in MF through ET money be done from an Nre account . Pls inform
Pls add watchlist option , it is missing big time.
How to check about fund manager performance
Sir I m asking one question I m long term investor in mutual fund plz provide best mutual fund in my Folio
Thanks Sir, is there any charges to be paid to ET for investing in mutual.funds using ET platform?
What is direct fund in mutual funds?
Index funds are direct and regular too
you tube video to start investing may be available to investors through youtube
No ratings for international funds.
Hello Sir, I have one question. I had invested in mutual fund long back. That time I didn't have DMAT account. How can I add mutual fund in my DMAT account?
Hi. You'll have to check on that with your trading account platform
Sir if we use the method of star ranking system for invest in MF through ET Money and in next year if you give 2 star instead of 5 star of previous year, in that case should we shift our investment to the new fund or continue do investment in old fund ?
I think you can consider investing in index fund. So that there is no need to change the funds frequently and in this way you can leave your money for compounding without interruption.
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👍👍👍
Which gives high return, Active fund or index fund for long term, 20 years
We can't predict it so better is to invest 50-50 on both index and active fund as well. This way u will see which fund performance is better with time period of 5 to 10 years minimum if time horizon is 20 to 25 years...
Fund A has been a consistent performer having a high expense ratio and Fund B is giving lower returns and also has a lower expense ratio?
which fund should i choose
you gotto do the math brother. i'd say, which ever has greater [returns% minus expense%] is a good way i think.
@@shankarprasad5767 I don't really get it, since the NAV is already inclusive of Expense ratio
Simple answer is time horizon
If your time horizon is between 5 to 10 years go for fund A
Anything above 10 -15years go for Fund B
If mutual fund is charging 1.5% as TER, and if it gives 12% annual return, then my actual return is 10.5%
@Yashodeep Karne
Bhaiya normally is 15% int rate given or not??
Sir. Direct plan started Fromm 2013 not from 2003. Please correct of possible
Agree - direct plans started in 2013 and not in 2003
Lost faith in mutual funds after I saw in my invested hdfc housing opportunities fund invested in restaurant stock Barbeque Nation
sir is adding lumsum amount with existing monthly sip is good one?
If current NAV of the fund is at 80% or less when compared to its peak value in the past you can invest the lumpsump amount. Otherwise increase the sip amount so that your extra money will get invested over a period of time and average out.
@@msaw504 good suggestion..could you pls share any research/study on this? thanks!
Et money customer care number konsa hai
ICICIB❤
Please explain compounding in mf
Et money's ranking on app does not make sense.
Hi Nath Sir, I want to do lumsump investment in MF's approx . 2-2.5 Lac partially for 0-3 yrs. And some longterm To cover home loan and further . but keeping in mind high nifty index waiting. Is it wise decision to hold ??
First of all dont invest money in equity which you require before 5 years, invest for 5 years and more. Investing lumpsum amount will not be a good idea. In place of that you can invest in systematically.
What if a fund manager runs away
Is it possible that MF company runs away/does fraud?? If yes what should we do about it.
Hi sir, as investment in Mutual fund for long term goal like 20-30 years how much secured it and investment through different platforms and fund offer companies to redeem amount by me/nominee.
Please provide point to point details
Sir can a mutual fund scheme last for 50 yrs?
Yes
sir pl start in hindi
Debt funds have direct plan ?
Yes, debt schemes also have direct plans
First
Second
Hindi video vilupt
Hindi bhai 🌎
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@@ETMONEY ha 😂 us pay ek hi video add hai who
I have cancel my sip rs 1000 after 3 months. My amount seized for 3 years. Why the amount are not credited from MIRAE mutual fund.
You must have invested in Tax saving fund these are called ELSS fund and comes with a 3 year lock in since it have a additional tax saving benefit it is better if you compare it with PPF
@@amitsingh4552 no brother. I have invested direct benefit but I am not choice redeem option. I cancel the sip...give any suggestions if you have how can I withdrawal money .
@@BOComputerCentreLar regular and direct plan is a sub category...the actual category in your case is ELSS which has a lock in of 3 years
@@ashutoshmadhwani2335 after three years I got that amount Yes or not
@@BOComputerCentreLar yes
Sir Hindi me bhi apna you tube session start kre pls ...ya maximum hindi he use kre🙏
Kyun use karein hindi bhai. Humko English me sunna hai.
Angrej chale gaye unko sunne wale yahi rah gaye.
@@SaritSasidharan Bhai hme to angraji samj nahi aati ...isliye ..aapko hindi samj to aati hogi...
@@avinash6292 school nahi gya kya
@@prahladsingh5199 angrezon s zyada India mein boli jaati hai English