MF Investing ~ frequent discussions

One of the things that I like most about my field of work is to able to interact with people from such diverse walks of life. In this blog post I would be sharing few interactions on investing with clients / prospective clients.

"One of the funds in our portfolio is lagging, why don't we switch it? Have come across a 5 star rated top performing Mutual Fund Scheme, I think we should shift into it!"

Hmm... OK. Have you ever been stuck in traffic, particularly in the lane that's not moving? You see other people switch lane and are frustrated by lack of progress. So you switch lane. No sooner you do that, your earlier lane starts moving and the current one comes to a halt!

This is exactly what happens when we try to chase the top performer every year. History shows that those who constantly 'change lanes' to years top performer don't keep up with overall average returns in long run. We should never chase hot fund. Don't worry if there is periodic under performance from time to time. However if an investment is consistently lagging or under performing for periods at length, we would review it.

"I understand the I have started investing for financial goal 15 years ahead, but its difficult to see investment portfolio worth go up and down"

Just imagine, your mutual fund portfolio as a tree! Just as seasonality will effect the tree, cycles effect equity. There would be times when new buds of opportunity would appear, there would be times when tree would bear fruits and ready for harvest. There would also be times when it would be barren, this is time when patience is most required. Let time pass, season would change and new growth would appear.

I view your portfolio as a tree! My job is assisting you in understanding, when to water it (buy new investment), when to harvest(sell), when to fertilize it(buy) and when to prune (sell). With patience and care the tree would grown strong and fruitful.

"So much ads in media, that I can invest in mutual funds directly. Mutual funds direct schemes are cheaper by almost 0.75- 1.00%, why invest through you?"

True, that is a valid question. Let me try to answer that. Just imagine, that you are planning to go on a distant trip. You are offered an opportunity to fly to your destination with two options. You can select either of those.

In first option your airplane would be flown by experienced pilot. He has 10000+ hours of flying experience and is paid to do his job. Second option is that you fly the airplane yourself! There would be auto pilot and also computer that would tell you everything you need to know about flying for free.

Most people would choose to fly in airplane with a professional pilot, what would you do?

Information is available everywhere for free this days, what you pay is for experience. I have been around in markets for 15+ years, have seen bad weather and know how to make safe landing in them too :)

Disclaimer :- All investments are subject to the financial and market risk. Investors should re-assess information provided herein before investing. Mutual Funds are subject to market risk. Past performance may not be sustained in future.

If you interested in Investing in Equity Markets via Mutual Funds we can assist and guide your Investments, get in touch with us. Click Here to get our Contact Details

#MutualFundInvestment