Investors who are new to market or who lost most of the money without proper trading always suggests us to invest in mutual funds. What they don’t know is in the long term mutual funds is a loosing game. I’ll tell you why it so…
Low Returns
In the long term they only give Inflation-Beating Returns i.e 6 to 10 %. Forget about morethan 10 years. They smartly hide the data.
Man, is it not easy to make 20% return by swing or position trading?
Liquidity
You cannot sell, whenever you want like stocks or etfs.
No Control
They say experts select the stocks but are they really have expertise? That’s crorepati question.
Suppose if they bought some cheap stock, you can’t do anything about. They are the flag bearer of worse performing stocks like idea, vodafone, vakrangee, yesbank etc…
You can’t do anything, even you stocks in the funds are going down.
Imagine your mutual fund invested your money on 370rs time.
Fee
By any luck, if your mutual funds performing well, you need to pay extra fee but most mutual funds don’t grow well; will they revert your fee? No, you still need pay. I’m asking why we need to pay, when the returns are so low. Don’t ask me about service fee, load fee…etc…
And they are many other drawbacks which over weights the advantages.
Stock market runs more on emotions, less on data, economy and all other bullshit. But so called experts don’t agree, because it’s their entire income depends on them.
Share your thoughts on this issue, let’s discuss more about it. Thank you!