Selection of fund house

POSTED BY Ramaballav Routaray ON July 13, 2013 9:27 am COMMENTS (8)

Dear All,

I have decided to invest in MF.

I have account with axis, icici & hdfc.

Pls advise should I invest through any one of these banks or should I directly approch to non-bank fund house?

What are the charges levied by SEBI & these fund house?

8 replies on this article “Selection of fund house”

  1. bemoneyaware says:

    Do you understand yourself as investor :
    What is the purpose of investing ,How long do you want to invest? How much risk can you take ? What is the liquidity that you expect from the investment ? Frequency of Investment : Are you planning to invest once in lump sum or it would be a periodic investment?
    Who is suggesting the product : Is it someone who is doing for his own interests (ex Bank Relationship manager, agent) or who has my financial interest in mind(a good financial planner). or You heard about it in newspaper, TV, magazines,blogs, friends, family.
    How does it fit into my financial plan ?

    Why You want to invest in mutual fund?
    Equity based mutual funds can offer similar returns to investing in stocks on your own, but without all the extra work.The flip side of this reduced volatility is that fund returns can be muted relative to individual stocks.Another disadvantage the professionals running mutual funds do not do so for free. They charge fees, and fees eat into returns.You must understand that Mutual Funds performance is tied to the fate of the securities it invests in i.e. it is market related and does not offer any guarantee of returns.

    First step is selecting the right type of funds.

    Choose the right type of fund(equity,debt,Gold etc) and then check the fund house
    Our articles How to Choose Mutual Fund How to Choose Mutual Fund : Ratings, Fund House,Size discusses it in detail.

    1. Ramaballav Routaray says:

      Hi,

      Nice advice.

      I am looking for a long term investment.

      I think to invest in ”icici prudential focused blue chip equity fund”

      Pls advise if it is a good fund to invest in long term.

      I found this MF is investing in large cap companies where risk of losing money in less.

      Pls correct me if it is wrong.

  2. Mohit Pandey says:

    Dear Rama,

    If you are investing your hard earn money then you should also invest time to understand all those things. No need to visit any fund house personally, mail and calls will works (I never visited any fund house personally till now).

    So for starting use fundsindia.com, after you are comfortable you can invest directly with fund house…

  3. Kuntal says:

    Mohit,
    If Fund house “provide excellent service”, then it is highly unlikely that “their funds performing bad from long time.”
    If one chooses fund houses like Franklin, Quantum, HDFC and invest in them, then one can expect his or her funds to be in top 2 quartile 8 out of 10 times.
    So for investors who dont have time & energy to monitor their funds, choosing Fund house should take precedence over choosing fund itself.
    Regards,
    Kuntal.

    1. Ramaballav Routaray says:

      Dear Mohit & Kuntal

      I agree with both of you.

      Everyone of us are busy with their office. So I need a good platform to hold the MFS. I can’t approch to fund house personally. (I day leave = some money)

      I think fundsindia is a good platform to hold funds like HDFC, Quantum or FTI.

      Any other alernatives?

  4. Mohit Pandey says:

    Dear Kuntal,

    I respect your opinion. Just want to know if Fund house provide excellent service but all of their funds performing bad from long time, do you still invest in those funds since this fund house is good.

    I follow “Love you job not your company” the same way I just bothered about the good funds and also I don’t touch funds from PSU (SBI, LIC etc).

    Regards
    -Mohit

  5. Kuntal says:

    In my humble opinion, researching for good fund-house matters more than searching for good funds.
    Tks,
    Kuntal.

  6. Mohit Pandey says:

    Dear Rama,

    Don’t look for fund house, research for good funds. It doesn’t matter in which bank you have saving account.

    If you know in which fund to invest then go direct else create an account on FundsIndia.com. there service is pretty good.

    Regards
    -Mohit

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