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MF Misery!

J

Janaki Jambunathan

Active member
Apple Tarus Centurion Morgan Stanley GIC - These MF aggressively marketed their products in 93/94 But failed to live up to expectations! While doing குப்பை கிளறல் last weekend I found these certificates All are defunct except Tarus With great difficulty I found most of them have different avatharam or names being taken over ! Apple taken over by Birla Sun life GIC by Canararobeco Centurion and Morgan Stanley by HDFC MF The process of redemption is really a pain your signature will not match after 25 years! I hope I will do it soon with all those procedural difficulties ! I think it should have been sensible to have invested in Gold! The redemption amount after 25 years is pittance!

 
First off, please understand, all financial advisors and mutual fund managers are making commissions from "your money" by ,asking you to invest in the various policies, funds, etc.

Just because a fund manager manages 5000 crores does not make him smart in managing it. He earns his salary commissions in crores as a certain percent of the 5000 crs. you will only make your standard 7% or at times slightly better.

If these advisors and fund managers were so smart, they will invest their money and become super rich. Most financial advisors live in hand to mouth situation in life. LOL.

Most mutual funds can grow your money at best marginally better than standard FD rates. Because they have institutional knowledge (detailed research, better access to companies management, processes, promoter pledged shares, etc..), it gives them a better edge.

Again this comes with a lot of risk as they can perform worse than FD as it happened in the last 12 months.

So you guessed right, keeping it in FD is the smarter thing to do :)-
 
Speaking in Hong Kong recently, economics Nobel prize winner Robert Merton gave the best single statistical reason why fund manager evaluation adds zero value for investors. According to Merton, to be able to verify with 95% confidence that a manager provides superior advice, the manager would have to average a return of more than 30% for 20 years.

No manager of substantial investments has done that, not even Warren Buffett. And yet, that’s only to verify the manager with 95% confidence. You would be making a mistake five percent of the time. Moreover, this would verify the manager’s performance only in retrospect; it is no assurance of future performance, because conditions change.

 
I invested in MFs SIP in 2008 but redemption in 2015 didn't bring any benefits to speak of. Since then, I have opted for yearly investments in certain Cooperatives , after scrutiny in terms of durability etc. Some of these, like the state Govt Treasury, can be depended on. They give me interests between 9 - 10 ℅, which is much less than what MFs are said to generate but quite satisfactory for me and no headache. Was it Kahneman who wrote in his book that indecisiveness when confronted with too many options can lead to huge drain of energy and happiness. If I invest as EOS, including my parents who are Sr Citizens, I get an additional .5% interest.
 
Best is to invest in low cost Index Funds ( for those who are afraid to enter into direct Equity ) on a regular basis especially when the market is down and they give much better returns in the long run
 
To day I got a statement of accounts from Franklin India Templeton At least here I see some light at the End of the Tunnel. I had invested Rs 5000. in Kothari Pioneer MF in 1995 Taxshield 95 reinvestment option to be exact . It was taken over by Franklin in 2004 after nearly after 25 years of holding after several avatharams - current value is about 2.5 Lakhs! This the only Fund that has given good returns
 
Invest in gold ETF .You might be better off.

Gold ornament is best bought in singapore if one is on vacation there.

Most indians holidaying in singapore do that.

Avoid mutual funds either debt or part equity.

Better directly buy any Nifty 50 share -preferably consumer durables such as hindustan unilever,ITC ,banks

such as HDFC bank.-a favourite of NRIs. Stay away from PSU bank shares
 
I am just looking into my shares that are in physical form - Could not demat them earlier - about 25 of them - They have either Vanished or delisted My demat ac is with Coimbatore Capitol I think 31 march is D day after April 1 you cannot trade with physical shares - DCM Huyndai NCl altek sector and other penny or paisa stock have sent circulars to demat their shares - but they are delisted and not liquid - Rs300 is charged for to demat each stock I am thinking should I spend Rs 900 again on these share that cannot be traded!

As type this I have received a statement of Account frm NSDL I have 20 units of ETF Gold by UTI bought for 19000 current value is around 60000 ! The shares in demat already have appreciated well!
 
I spoke to some of my friends who invested in MFs few years back ( invested when Modi took over in 2014 ) and they regret that decision as they found the returns not good considering the MFs take money for their own services and have started withdrawing their MFs and now investing in Low Cost Index Funds , Bank and Postal Deposits
 
This is the risk of buy and hold strategy.

If you hold a stock or real estate or any asset forever except gold, you will get hit by a black swan event like what happened in the housing crisis in the USA and now with many stocks like zee, ilfs, IDBI, jet airways, etc..

Now the other side of this coin is, if you don't hold an asset for very long periods, then you will not make the "superlative returns" like the big investors.

Hence investing should have a combination of multiple strategies with right diversification, so that you minimise your losses, and "optimise not necessarily maximise" your gains.

Ps. Gold can be classified as a evergreen asset ?, as long as the new age scientists don't come with a formula to create gold form the chemicals... LOL.
 

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