1. my articleis :-
don’t invest on the basisof a
Mutualfund’s best performance
Period :view
2. CONTENT
1. What do you mean by financial investment plan?
2. Purpose of financial investment plan .
3. What are various ways of financial investment ?
4. What is mutual fund investment ?
5. Different types of mutual fund.
6. Advantages of mutual fund investment.
7. Article example And suggestion by the writer.
8. Conclusion.
3. WhatDo You Mean By FinancialInvestmentPlan
DEFINITION :- We allhave financialneeds that change with
circumstances and environment we are in.
To be able to handle these financialneeds well , we need to plan
for them in time and plan well.
Six steps of financialplanning are :-
1. Establishingrelation. 4. Asset allocation status
2. Goal setting. 5. Implementation
3. Accessing financialstatus. 6. Review
5. WhatDo You Mean By MutualFundInvestment?
• A mutual fund is formed by putting together a group of
investors pool in their and the investment is done by a
professional fund house for a fee through its
professional fund managers.
Investor
Mutual
fund
Security Returns
6. DifferentTypes Of MutualFund :-
On the basis of duration :-
1. Closed ended fund 2. Open ended fund
On the basisof asset managed :-
1. Equity Fund = Growth Fund , Index Fund etc.
2. Debt Fund = Gilt Fund , Income Fund etc .
3. Hybrid Fund .
4. Special Fund = Gold ETF , Foreign fund etc.
8. SituationsFrom My Article :-
1. One investor is eager to invest Rs 7cr. in mutual fund
2. Another isready to invest about Rs 4cr .
3. A businessman who wantsto invest Rs 7cr earned after hishouse issold.
to earn 1.25cr yearly idea taken by a friend.
4. As his friend has invested Rs 5cr for 3year ago and get return of Rs 8cr as
Rs 1.25 yearly.
9. SuggestionFrom Writer For These InvestmentPlan:-
The first two investor want to invest Rs 7cr & Rs 4cr :-
These particular investors are trying to invest infund
with unrealistichigh expectations on returns.
which make huge changes in their personal financial
structure.
10. CONTD. :-
One is the example with successfulproof of investing
Rs 5cr and getting return of Rs 8cr shown to writer.
But writer suggest that :-
in past half decade was explosion in mutual fund
investor. But things will not be same all time .
‘As mutualfundsare subject to marketrisk ‘
11. CONTD. :-
Writer do give a idea of non consistency in mutual fund
return as follows :-
In 2014 = 40% + returns.
In 2015 = Flat means no returns.
In 2016 = Flat means no returns.
In 2017 = 20%+ returns.
12. CONTD.:-
After seeing this figure anyone can say that total gainis
75% .
As someone can shows you an account statement
with only initialinvestment and finalinvestment.
But the annualisedis 17% it looks magic and makes no
mistakes. The volatility is much part of it as returns.
We cannot consider 17% asfixed deposit as it is Return
which canbe flatin some years which canmake big loss.
13. CONCLUSION :-
One should not take returns as for-granted .
Should not invest only in particular period
of exposure.
Should calculate the average returns of funds
for the investment instead of going with
net returns .
And as per the thumb rule is that :-
1. More risk more return.
2. Less risk less return .
But investor should invest according to regular
fluctuating returns. Not in periodic basis.
