How ADVISABLE is MUTUAL FUND investments?

Sunday, October 9, 16

How ADVISABLE is MUTUAL FUND investments?

Greetings from Hitesh! In our last post we had taken a support of ASTROLOGICAL SCIENCES to see the current and coming scenario. Many people have approached us for ASTROLOGICAL inputs for betterment of their life and business. We are in the most auspicious PHASE of the year. This is the time to take steps to propitiate the cosmic energy to boost the quality of your life. Take action to contact us for the same.

Today I am going to talk about the above-mentioned subject with FACTS and FIGURES.  Just study yourself and take your own call.

How MUTUAL FUNDS are MARKETED?

General pitching of the Mutual fund guy is – the market is complex / dynamic and it is not possible for a NORMAL guy to analyze all the data and do the investments. So, let us give our money to the EXPERTS and as they are well placed do handle these complex market.

According to me - this is the MOST NEGATIVE statement on NORMAL guys intellectual capacities. Without knowing him, without educating him, without giving him proper chance – the ADVISOR is telling HIM that he is a FOOL in a most sophisticated way. He can earn but he can’t manage or invest his money. Just give it to us and we will earn for you!!

It’s irony that most educated guys earning in lakhs and millions, having a very high EGO for their SUCCESS and their POSITION in the CORPORATE or BUSINESS WROLD - do not feel insulted with such a DIALOGUE. They simply SURRENDER to this dialogue.

This is the effect of marketing. Its like telling a guy from EARLY AGE that you are a FOOL and when he grows up – he proves that he is a FOOL due to subconscious hammering for so many years by the family members and teachers.

I am going to share one SIMPLE EXAMPLE for FACTS and FIGURES lovers to prove my point about not investing in Mutual Funds. If you READ with OPEN MIND – you will also AGREE with me.

MARKET RETURN from 1980 to 2015 :-

Let us take a journey of SENSEX for understanding. We have seen worst scams / droughts /political instabilities / wars / bop crises and things like that during last 36 years.  

Sensex has moved up from 100 to 29000 during these periods. If you calculate point-to-point compounded return for 36 years – you have a return of 16% per annum. In other words your money was doubling every 4.5 years.

Suppose, if you have done investment of Rs.1 lakh directly in the BASTKET of SENSEX companies in that proportion or in SENSEX  – you would have got Rs.28.85 lakhs at the end of 2015.  Your one lakh became close to Rs.29 lakhs at 16% CAGR.

Now, Let us see you have invested in MUTUAL FUND in 1980.

Say, you have invested in a mutual fund, which is managed by STAR FUND MANAGER, and he is also producing 16% return all over the last 36 years. You have invested Rs.1 lakh with him and he is CHARGING just 2% as management FEES every year as FUND MANAGEMENT FEES.

Many of you think that it is just 2% and it’s okay. I am not talking about any HIDDEN CHARGES or NON DECLARED CHARGES. SEBI has recently asked to declare the remuneration of FUND MANAGERS to all fund houses. For my calculation I am assuming your cost as just 2%. How much will you get?

If FUND guys takes just 2% every year from your year end corpus as management fees – you would have Rs.10 laks in your account at the end of 2015.

It means you made Rs.9 lakhs in last 36 years on your investments of Rs.1 lakh while MUTUAL FUND made Rs.18.85 lakhs (Rs.28.85 lakhs – Rs.10 lakhs). So, called SMART guys do not like to spend money on PROPER EDUCATION but they are GLADLY giving above SECRET DONATIONS.

You took all the RISK of LOSS / you invested your HARD EARNED MONEY and you made Rs.9 lakhs. While the guys who did not TAKE RISK of LOSS / who did not invest a PENNY of his CAPITAL made Rs.18.85 lakhs. Who is SMARTER?

Next time you call yourself STREET SMART / INTELLECTUAL / MODERN GUY – look into your investment portfolio and if you have also done investments in MUTUAL FUNDS – just change your BELIEF about yourself.

In all FAIRNESS – I have assumed that MUTUAL FUNDS are generating at least Market RETURN. Most MUTUAL FUNDS are not doing that much also!! So, you have a loss in terms of FEES and in terms of PERFORMANCE.

WHAT IS A BETTER WAY?

You have studied your MBA / CA / MBBS / BE and things like that. Say you have paid for the SEAT or given DONATION for that SEAT. But it was your one-time expenses and today you are earning tons of money from your job or business due to that course. In most cases – you earned back the FEES in a year or two. Rest of the life is PROFIT and only PROFIT.

The same way NOW do the course on HOW TO INVEST with DESTINY MANAGEMENT. Be with us for just 3 years. Pay our TUITION FEES for 3 years only and learn the fine art of investments. We teach investments in almost all the assets classes – equity / real estate / bullion / currency / derivatives of all the asset classes available in India / antiques / paintings / coins and currency notes collections and things like that. 

The BEST thing about our COURSE is – you EARN while you LEARN. You DO NOT HAVE TO WAIT till the COURSE is OVER.

Once you LEARN yourself and PRACTICE it – you will never have to pay money to anybody for life. You will EARN the best possible return on your capital at your own speed and comfort of your home.

What NEXT?

If you study the list of billionaires - you will find the names of the people who are running MUTUAL FUNDS or STAR FUND MANAGERS who are billionaires. I am yet to come across a guy who has become BILLIONAIR by investing in MUTUAL FUNDS. If you still want to PAY to MUTUAL FUND GUYS, I have no issues with you.

But if you have SELF RESPECT, if you consider yourself Successful and Intelligent and if you REALLY ASPIRE to BECOME BILLIONAIR some day like RAKESH or BUFFETT – learn the fine art of investments yourself.

We are passing through the auspicious period of NAVRATRI to DIWALI. Join us and let us worship and propitiate the GODESS LAXMI together. Do contact me.

Follow me on Twitter @hiteshmparikh /  WhatsApp - +91-9869425399 / www.hiteshmparikh.com

Live With Passion…Invest With Passion.

Hitesh Parikh.

www.hiteshmparikh.com