Why should I not invest in one mutual fund from one AMC ?

POSTED BY praveen22 ON May 31, 2014 10:10 am COMMENTS (4)

Hi all,

After a bit study i have started investing in Franklin Tax Shield (G)(D). After looking into MF articles and Q & A many are suggesting not to invest in one mutual fund from one AMC. I would like to know the reason behind it.

I am interested to go with Bluechip/Smaller cons, but then stopped my self.

4 replies on this article “Why should I not invest in one mutual fund from one AMC ?”

  1. TheZionView says:

    the idea behind that recommendation is if the AMC where your fund has to foreclose all your money will be in question.

    But that kind of scenario is very rare and usually if one goes out of business someone else just take over the company and continue.

    Remember what happened with Fidelity exiting indian market? did u hear investors shout abt their money gone? so if you believe in the process there is no harm in having all your money in one single AMC

  2. Hemanth Chandra says:

    Better don’t keep all the eggs in one basket

    1. praveen22 says:

      Dear Hemanth,

      But then franklin smaller cons giving great returns in its fund category. It is almost first in place.

      Regards,
      praveenn

      1. Hemanth Chandra says:

        Yes I understand….. But are you sure it will continue for ever….. ??

        What they are advising is to diversify your investments, so that if one sector/fund doesn’t perform well, others can compensate the loss in this.

        Also, I think…. its not “not to invest in one mutual fund from one AMC.”

        it is “not to invest all money in one type of mutual fund”

        Let me know if any clarification is required…..

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