Mutual funds? "Sahi Hai" ya "Scam Hai"

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Mutual Funds are the schemes put forward by various Investing Agencies who wish to invest your Money in a Highly Diversified Portfolio. If you are unable to decide which companies to invest in to get consistent returns that’s when mutual funds come into play. But are they really useful? Well the answer to this question depends on you, Let’s consider a few scenarios.
You want to Regularly Invest a very tiny amount of Money and don’t want to take the burden of choosing the right stocks, well then maybe mutual funds can Work for you.
You want to invest a Heavy lumsum amount but are unsure whether to diversify your Portfolio yourself or invest in mutual funds; In this case it is definitely better to make your own portfolio.

How mutual Funds work, well the simple answer is that the these so called Giant Financial Institutions take your money and Further Invest in stocks of Your Choice, and when they do most of such Institutions really don’t care whether your money will grow or lose its value and the maximum return they can offer you will always be in the range of 20-25% which I don’t consider enough when investing.
Also, Mutual Funds are always seen diversifying their portfolios way larger than needed in fact the reason that most of the mutual funds can’t beat the market is their huge investments in a lot of Startups and Penny Stocks.
So according to me if you have enough amount to invest it is Better to invest in Market Indexes like Nifty and Sensex or you can also invest in commodities like gold (but I would never suggest to invest in gold no matter how high return it gives), but if you are lacking a lot of money and Want to invest in SIP’s (Systematic Investment Plan), here are some basic Guidelines.


  •     The mutual fund you invest in is a Blue Chip Investment Fund.
  • Investment Fund had given consistent Returns for at least 5 years.
  • The Mangers of that particular Investment funds are the majority shareholders.
  •  Mutual Funds you invest in is free of cost, in a nutshell no brokerage charges should be involved.
  • The best Mutual Fund Investment Plans don’t waste their Capital on Advertising, so no matter how much a Mutual Fund investment plan Promises for higher returns on T.V. or YouTube never Buy their scheme and trust them.
  •    If any mutual fund you are already invested in has suddenly started giving very higher returns than its previous returns, book the profit  sell everything and get out of their investment plan.
On a personal note when anyone asks me about investing in mutual funds I give them only one answer,

“Mutual Funds are for Kids.”

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