who should go for Capital Protection oriented Funds ?

POSTED BY swapnil.kendhe100 ON November 26, 2013 8:08 pm COMMENTS (3)

With so many capital protection oriented funds around, is it a good option for someone wanting to lock his money for 3 years with tax benefit.

who should go for these funds?

Sincerely,

Swapnil

3 replies on this article “who should go for Capital Protection oriented Funds ?”

  1. ashalanshu says:

    Dear Swapnil, CP funds can not provide such high returns as projected by some agents. The very base of these funds is to protect the initial capital, hence the money can not be invested in any growth assets be it debt papers of long term maturity. CP funds can be used mainly for retired people for protection of already accumulated wealth.

    Thanks

    Ashal

  2. swapnil.kendhe100 says:

    Dear Ashal,

    I m an insurance consultant and a mutual fund distributor.
    I am a chemical engineer and left my job at HUL to enter this field.

    I m only few months old in this field.
    I wanted to ask for whom does this product suit?
    With 4% commision, lot of LIC Nomura distributors sold CPOF to most of their clients.
    I did not sell this product as I was not really convinced abt above 10% returns which were being projected for this product.

    I just want to know what kind of investors should go for such products.
    Are such products really worth investing?

    Swapnil

  3. ashalanshu says:

    Dear Swapnil, why do you want to invest in Cap. Protection funds? Do you really got protected capital? What about loss in purchase value of your capital due to inflation?

    thanks

    Ashal

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