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Has Anyone Lost His Entire Money Invested In Mutual Funds?

Has Anyone Lost His Entire Money In Mutual Funds

Has Anyone Lost His Entire Invested Money In Mutual Funds?

Many people use to ask me this very very very interesting and important question regarding mutual funds. And I think you also have this particular question somewhere in your mind!
You know why this is so interesting and important question?
Reason is, In a country like India where people know only about LIC, FD, KVP, NSC, PPF etc. would divert towards Mutual Funds Investments only when they get satisfactory answer of this particular question!
After all everybody loves his/her hard earned money!
So let me try to answer this question very effectively today after years of my experience, consulting and research…
Investors in mutual funds can lose their money if they get impatient and panic due to major correction in market and stops their further Investment! (You might have seen this recently after announcement of Budget 2018, LTCG Tax and fall of market in the very first week of February 2018!)
Before starting your Investment in MF just stick to this line “I will invest my money in MF scheme for long term, I will continue my Investment without attaching to the returns (positive or negative) it is offering right now!” so that you can easily overcome your emotions towards your money!
And in addition to this, this patience and dedication while Investing in mutual fund will end up giving you very healthy inflation beating returns i.e. between 12% to 20%
Let us consider the following Nifty Statistics:
Date > Nifty >> Duration in Months >>> Annual CAGR rate%
15.09.1998 > 0900
20.02.2000 > 1722 >> 17 >>> 64.47%
28.09.2001 > 0913 >> 19 >>> -29.67%
16.01.2004 > 1900 >> 25 >>> 51.89 %
04.06.2004 > 1521 >> 05 >>> -47.87%
12.05.2006 > 3650 >> 23 >>> 73.03%
07.01.2008 > 6287 >> 19 >>> 45.63%
03.03.2009 > 2622 >> 14 >>> -49.97%
04.11.2010 > 6281 >> 20 >>> 83.73%
16.12.2011 > 4651 >> 13 >>> -23.96%
03.03.2015 > 8996 >> 39 >>> 28.74%
26.02.2016 > 7029 >> 12 >>> -21.87 %
24.08.2017 > 9852 >> 18 >>> 29.00%
This shows that how economy and market grew with the time, so the returns offered by it!
Atlast, my personal research says that,
  • Loosing of all your Investment amount in Equity Mutual Funds can be very high in the 1st year of Investment.
  • Then, it goes on decreasing as the years increases!
  • And finally, after continuos Investment for 9 years, the chances of loosing your Investment becomes “ZERO”.
Here, I mean to say that, even worsest or worst mutual fund scheme has given positive returns after 9 years!
Also, even non famous and low attention paid mutual fund schemes has given returns higher than Bank FDs.

If you don't try, You'll never know.

So now, the choice is yours, whether still you want to remain connected with old traditional Investment tools or you want to experience the modern tool of wealth creating instrument!!!
Hope, my this article will motivate and bring you out of the fear of loosing your money when invested in Mutual Funds.
Last but not the least, MUTUAL FUNDS SAHI HAI!
Happy Investing!
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Thank you for this awesome article...

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