Mutual Funds?

Question

Hi,

I am based in Bangalore, India.

I do most of my investments through a private bank. Most of my investments are in mutual funds and all these go through my bank. Each time I invest into a mutual fund, the bank charges me 2% fee.

The bank has assigned an investment adviser to me. The advises given by the investment adviser are most of the times more favorable to the bank than to me.

Neither are the funds chosen by them are any great nor are they doing anything great to manage my money.

Hence I want to try investing in Mutual Funds directly.

Is there anyone who can help me with this?

Thanks a lot in advance.

Answer 1

You should invest in four to five different MFs on the basis of their Rating,Performance, raputation of fund House and Fund Manager. I would suggest you to always invest in Taxsaving MF and for short term benifit buy shares of good companies at lower price.

In order to invest Directly in MF  download the form from the website of that very MF company and in the broker box write "DIRECT" and submit the form directly to Karvy or CAMS. No body will charge you even a single penny to you.

Answer 2

Check out Vanguard.  They have very low cost index funds (some of the lowest cost funds in the industry).  They also allow you to invest directly with them, so you can avoid the fees.  You just have to send them a check.

Answer 3

Hi,

I appreciate that you took time to analyze the investment advices.  Most of us don't do it.

Now coming to the point of direct investing -

It's a good idea to save on the 2.25% charged by the mutual funds but do you have the time and energy to look into the very details of your investment strategy? Will you be able to frame a long term target oriented financial plan for yourself? - it calls for time, keeping track of new opportunities and tracking the health of your investments. Now, by health I don't mean the returns only - you need to take care of your risk exposure vis a vis returns. To my mind, a financial plan and regular investment is more important than returns over a short period.

To invest "Directly" into any mutual fund, you need to go to the mutual fund office and ask for a "DIRECT" investment form. Remember, if "DIRECT" is not written on the form, you have to pay the charges.

Rest is simple! Fill up the form and deposit the form with a crossed cheque.

Happy Investing!

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