-
-
-
Services
-
-
-
More
-
POSTED BY ON October 13, 2012 11:08 am COMMENTS (8)
Dear Manish,
Though i have read various information about investing in mutual funds. Still not able to understand how to diversify MF properly. I am not good at understanding these terms basically.
Some of friends invested in certain mutual funds and now its at loss. So, i thought of understand the basic knowledge on how to diversify our funds to manage the huge risks?
Regards,
S
2021 © Jagoinvestor.com All Right Reserved
Wonderful. You are the man!!!!
Thanks Manish. He wanted to show some calculation in excel sheet. Let me see, if something fishy, and possibly I can share that as well.
But what are the key point should I look at?
The answer is, anyways, NO. Not at all.
Check 3 aspects
1. Return after all the expenses, charges and final IRR . Ask him for IRR and how it compares with PPF , FD and Equity Products .
2. Simplicity of the product , how easy it is to understand
3. Pre-Closure – Ask him what if you want money back in 3 yrs, 5 yrs and 10 yrs and at maturity. He might say , its a long term product, but still ask him what happens in those cases, what all you get ?
4. At the end , ask him that you want everything on the terms and conditions sheet on LIC papers . Nothing unofficial . See what he says !
Manish
Meet him, and then post the discussion here so that people can tell you about the various things and aspects.
But, do not commit funds to anything, unless you know what you are getting into. For investing into a product for 15 years, you can have 15-30 days to just think and plan about. Right.
Thanks Manish. By the way, i wanted share the discussion i had with one of the FP today. He is based out in bangalore and he told me that, he is pursuing CFP and completed two modules. The strange thing is that, even after he has 8 years of exp in these area, he is still suggesting me to buy a child plan from LIC with low premium.
After reading so much of your article, i was able to debate him with questions (thanks to you) but still he says, SIP (equity) can’t reliable for long term and insurance is safe. He wants me to meet him, where he can show the amount in excel sheet.
May i know, how to tackle this situation>
Regards,
S
I think dont meet him and waste more time , The FP is not even worth talking to I guess . Just talk to someone else , or just take your own decision . This is not worth looking for a planner .
As of now , you can just invest in some 2-3 good mutual funds . To learn more on diversification , read this – http://jagoinvestor.dev.diginnovators.site/2012/08/portfolio-diversification-strategies.html