Question: Why would you “INVEST” in a Mutual Fund Scheme, what is your prime objective ⁉
Answer: Of course for Better Returns.
And, Hopefully, you are aware of the fact that in Mutual Fund Schemes, Invest means “BUY”.
Which means, IF Market is going up you will get Good, Better, Best inflation adjusted Returns.
God forbid, but, by chance IF Market crashes during YOUR Goal Year / Period just like it did in March 2020 then what will be your situation, what will happen to your Goal.
Did you ever think about that ⁉
Even did your Mutual Fund Distributor &/or Advisor told you about Plan “B.”
Case Study: Grave Situation
Mr. Rahul had invested in a Mutual Fund Scheme at 9000 NIFTY50 Levels during March 2017; that is just after BJP’s big win in UP Elections. Mind You, that was all time high of Market, back then.
However, GST was on its way (officially lunched on 1st July 2017) and Market had very well recovered from triple shocks namely Surgical Strike, Demonetization and Trump Wins the American Presidency, all were unexpected and sudden.
Till February 2020, Mr. Rahul was steadily getting good inflation adjusted returns even after all the uncertainty generated out of Surgical Strike Two, General Elections of 2019 and issues like JET Airways defund, Revocation of Article 370, etc.
Then, came the Master Event – Covid-19. Which driven out Market from the cliff like anything.
And because of that his returns are back to “ZERO” and only now at 18000 NIFTY50 Levels, he is getting near about 💯% returns.
At this stage, Investments are in Fixed Deposits, Gold, Land & Property looked much better.
In other words, Your Mutual Fund investment is tied up to NIFTY50 just like of Mr. Rahul’s.
If that is the case, then, why not just do Index ETF either in Bulk and/or via SIP route on regular basis; Why to take unnecessary Market risk by investing in Individual Stocks even via Mutual Funds route.
If You do so then will have following benefits,
- Cost Saving: ETF Managers are charging lesser Fee compare to Active Fund Managers.
- Crystal Clear Risk: Index can not go to Zero. There is limit How much Index could fall.
- Peace of Mind: Researching, Comparing ETF Returns are easy. Better diversification.
- Backing of Exchange / Regulatory Body: Feeding out Weaker Stocks, adding-up Stronger Stocks to support Market from the lower levels.
Mutual Fund Schemes are not giving all of this in a way you must get.
But, again you will not be having following Benefits,
- You can not do Short Sell. Which means Participation in Down Trend is Ruled Out.
- You can not withdraw Funds for fear of Losing out on Potential Reward or Exit Loads.
- Your Returns are limited. In a sense, Mutual Fund Units never become Multiple bagger.
- TATAPOWER become 5 Times in 12 Months
- TATAMOTORS generated 3 Times Returns in 12 months
There is a Option: Pillars’ Strategy.
If you give us 36 months, and during the period do exactly as updated on your WhatsApp then without a doubt YOUR Original Capital of ₹10,00,000/- can easily be ₹30,00,0000.
We just need 12 to 15 months but taking approach of Under Promise Over Delivery and/or Principle of Conservatives.
Your Standard Market Risk remains 20% for 100% Reward in 12 Months. Our Working Motto. 🙂🙏🏽
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