What is wastage of mutual funds ?

Mutual funds are always not considered as a good source of income, as it clearly states in it's policies that the investments are subject to the Market risk. Which means you are the only person who is responsible for the profit or loss.

wastage of mutual funds

But, usually we only see the good side of a coin and hence, are caught in a trap. We invest blindly without any counselling or legitimate financial advice. 

Things we do that are the clear cut wastage of mutual funds

  1. Skip live tracking of stock price - we forget to track live stock price from legitimate markets such as BSE, NSE, US Market and latest NAV portfolio of mutual funds. We just track stock from mobile apps that are promoted by celebrities. And are under control of analysts team in various cases.

  2. News updates of the current market- we didn't check out the latest IPO news, best performing IPOs. we just rather simply Google it and believe in SEO research, or believe in news updates by the app and never investigate further.

  3. Neglect Tax- we only calculate our profit and loss and usually forget the income tax at the time of investment which causes a great loss. And later on tends to waste our mutual funds. To avoid loss, one should use an income tax calculator, in order to gain profit.

  4. Invest in Best equity funds- we should look after the company with the best equity funds. So, our investment will be more secure. And prevent wastage of mutual funds.

  5. Research on Investors- It should be obvious to know about Top gainers and Top losers of the market. And, follow them before investing even a small amount.

market risk in investment

If we want to invest for a short term then usually, we go for Trading. Whereas, for a long term then we would prefer investing. But, mostly people mix both of these,  in order to gain more. But as a result they start losing their money and call it a wastage of mutual funds.

A Fund Manager is a person who manages all types of funds. And as an investor, in many cases the fund manager is supported by a team of analysts. You have no control on your investment, as the major decisions are taken by the fund manager. All you can do for a safe site is, carefully read the norms and policies while you take a decision to invest.

There is no way to predict what will happen with the mutual funds in the future, investments are at high risk. And for a start-up it's just like everything or nothing. 

Interest rate, socio political risk, fluctuations in market price are also at great risk for an investor and are the reason where an investor is at great loss. Due to war, political issues or the sudden flux in currency. The mutual funds are affected and the wastage of mutual funds may occur so the investor should keep this things in mind before they invest.

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