Why do people should be better than direct investment in equity mutual funds

Today, everyone when it comes to their investment decisions hard-earned money in these turbulent market capitalization in a dilemma. Investment is a path that can take many times beyond their expectations, in the same way the money can dry in bad road investment for your money. So, people looking for investment activities in the views of experienced professionals. My experience and observations indicate that, who adopted a "get rich quick mentality of losing their money quickly, because their" self-demand-based, before making any investment decisions assess the person. Through this article, I will try to explain a number of reasons, people should invest in mutual funds, direct investments in stocks.

First, the investment fund managers a wealth of experience, qualified to make investment decisions of domestic and international. Asset Management Company, LLC All businesses, in your portfolio or are expected to be placed on record. Asset management companies also have their own R & D team constantly keep out of the area, and is expected in the future implementation of a future area of focus. Before making any decisions, the fund manager's basic analysis (this type of analysis is carried out on the market to find the best tickets) and technical analysis (this type of analysis shows that when the enter and leave the time).

Second, mutual funds offer diversification advantages. In my most investor conference, I find that investors do not understand this, and so will focus on this point. Diversification is simply the distribution of assets in different sectors. Diversification to reduce risk, because the money is in various industries, the money has been invested in an industry or company will be exposed to more risk, due to volatility and government policies related to the particular sector. To give an example to illustrate this point.

Investors "to spend River in X's 50000, joined the company in the telecommunications industry, earnings per share and with the 3-year time span of 250 to buy 200 shares. Investor B has also invested River 50,000 @ 20, and noted that the Fund in 2500 unit. The fund will only focus on the telecommunications industry sector. Let us look at the future, after three years later:

Initiator / Share

Year

Yield%

Name

Distribution

Intellectual Property Rights *

Yu Ji

In the second quarter

In the third quarter

In the fourth quarter

IA

Weighted

X

25%

250

287. 5

316. 3

268. 8

279. 6

11. 8

3. 0

And

10%

200

218. 0

239. 8

203. 8

212. 0

6. 0

0. 6

ž

25%

100

117. 0

128. 7

109. 4

113. 8

13. 8

3. 4

P

20%

300

366. 0

402. 6

342. 2

355. 9

18. 6

3. 7

Q

20%

400

480. 0

528. 0

448. 8

466. 8

16. 7

3. 3

Overall

14. 1

The table above shows, due to diversification of income is higher than in a particular company stock investment.

Initiator / Share

Sophomore

Yield%

Name

Distribution

TCM

Yu Ji

In the second quarter

In the third quarter

In the fourth quarter

IA

Weighted

X

25%

279. 6

293. 5

322. 9

274. 5

285. 4

2. 1

0. 5

And

10%

212. 0

252. 3

277. 5

235. 9

245. 3

15. 7

1. 6

ž

25%

113. 8

136. 5

150. 2

127. 7

132. 8

16. 7

4. 2

P

20%

355. 9

398. 6

438. 5

372. 7

387. 6

8. 9

1. 8

Q

20%

466. 8

490. 1

539. 1

458. 2

476. 6

2. 1

0. 4

Overall

8. 5

Here you will find that once again, due to diversification of return is 8. 5% and 2. 1%. The report also pointed out that fund managers are constantly in the market, you can rely on when investment purposes.

Initiator / Share

3 Year

Yield%

Name

Distribution

TCM

Yu Ji

In the second quarter

In the third quarter

In the fourth quarter

IA

Weighted

X

25%

285. 4

314. 0

345. 4

293. 6

305. 3

7. 0

1. 7

And

10%

245. 3

272. 3

299. 5

254. 6

264. 8

7. 9

0. 8

ž

25%

132. 8

175. 2

192. 8

163. 8

170. 4

28. 4

7. 1

P

20%

387. 6

418. 6

460. 5

391. 4

407. 1

5. 0

1. 0

Q

20%

476. 6

509. 9

560. 9

476. 8

495. 8

4. 0

0. 8

Overall

11. 4

I think it goes without saying that diversification can not only reduce risk, but also to gather more favorable and safe return.

Total return over three years

Initiator / Share

Price

Distribution

Return%

Name

IP

TCM

United Kingdom Witten. 'A'

United Kingdom Witten. 'B'

United Kingdom Witten. 'A'

United Kingdom Witten. 'B'

X

250

305. 3

100%

25%

22%

6%

And

200

264. 8

10%

3%

ž

100

170. 4

25%

18%

P

300

407. 1

20%

7%

Q

400

495. 8

20%

5%

Overall

22%

38%

The table shows that the success of the management of investment funds 38%, he provided in the X return on investment rate was only 22%. Now imagine if scattered in various sectors where they are needed. Here, taking into account dividends and other benefits.

Third, mutual funds also offers a variety of tax concessions. People can have tax advantages, mutual funds, and in the future scheme. Only they need to maintain and in accordance with the time span and AMFI SEBI guidelines has already begun.

Fourth, the fund management of professional services costs are minimal. The benefits of doing so is because the increase in the number. Someone once said that because the entry and exit of goods, in the mutual fund's investment is more expensive, but in India, the Securities and Exchange Commission guidelines do not have entry and exit load, if the investment is made after August 4, 2009, investment in mutual fund scheme. This means that the experience and skills of the fund manager's services are free of charge. Because of the Indian Securities and Exchange Commission, so that these services are free of charge.

List of the benefits of mutual funds is long and there is increasing volatility and uncertainty of market growth. Because we know that in this world nothing is perfect, and mutual funds are no exception. In India there are not yet implemented mutual funds upto the mark. Investors should be careful, and in the mutual fund investment. My next article is based on "choosing the best mutual fund investment purposes."

Having said that, the views all individuals and the authenticity of these ideas are based on the number of investment funds from financial institutions and Web sites. I can not for any incorrect or adverse events.

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