“Mutual Fund Are Subjected to Market Risk, Please Check before investing”
Stagnant water smells, but flowing river does not smell.
Once upon a time, there lived a rich man, he was very rich and prosperous.
But he was very Miser, he did not want to help any poor person.
One day a priest came to him and asked him to invest the money for the welfare of the poor people.
As per the order, the rich man established two wells. One in the name of priests and others in the name of himself. The priest warns the man, if the water of his well reduces,
then the priest will going to own the entire wealth of the Rich man.
The rich man scared from priest warning, and close the well of the priest, that nobody can get water from priest well.
The rich man allows the poor people, to take water from his tank.
So that, his water get reduced.
After a span of 5 years, the priest came back to the village, to inspect the water in the wells, and find that the priest’s well water reduces, but the rich man’s well is more than the water of priest well.
The rich man was shocked with the results, then the priest explains, that if you close something, then there will be no growth, but if you let things move then they not only grow, but also it will give good and healthy returns.
Same as with mutual funds also. As if you neglect the investment after investing in the plan and do not monitor it, it will give you lose.
But if you, monitor your funds, then only they will give you profits.
That is the major reason for “why your best mutual funds are not best anymore”
These are some facts which can as follows,
- Considering the past performance of the fund, do not view the future aspects.
- The expense occurs while payment of management fees, commissions, expenses on advertising, and other expenses during invest process.
- The market needs regular watch, as it is uncertain in nature, No one can predict the returns.
- Change in the configuration of the Fund managers
- The segment of the market in which the mutual fund manager invests.
So, one has to watch the regular interval performance of the mutual funds,
A proper study and regular watch will results in good and hand full returns.
And if your best mutual funds is still not the best, then you have many options of redemption, switch over as well as reinvestment of that fund.