investing in is safety or not…
my father is suggesting me to invest in hdfc tax benificier..the period taken 10 years.
i dont know how it going to work out bcoz nowadays share market is going down …any suggestion.

 

  • muncie birder 11:57 am on February 16, 2010

    For long term investing, based on past performance, which is no guarantee of future performance, they are a good bet. But you have to pick a good mutual fund. 70% of all mutual funds under perform the market in general. That is because they charge high expense fees. 20% have done very well and some incredibly well.

  • khoj 11:57 am on February 16, 2010

    A mutual fund is a company that pools money from many investors and invests the money in stocks, bonds, short-term money-market instruments, other securities or assets, or some combination of these investments. The combined holdings the mutual fund owns are known as its portfolio. Each share represents an investor’s proportionate ownership of the fund’s holdings and the income those holdings generate.

    Mutual funds are not guaranteed or insured by any government agency — even if you buy through a bank and the fund carries the bank’s name. You can lose money investing in mutual funds. Past performance is not a reliable indicator of future performance. So don’t be dazzled by last year’s high returns. But past performance can help you assess a fund’s volatility over time.

    Thinking about your long-term investment strategies and tolerance for risk can help you decide what type of fund is best suited for you. But you should also consider the effect that fees and taxes will have on your returns over time. All funds carry some level of risk. You may lose some or all of the money you invest — your principal — because the securities held by a fund go up and down in value. Dividend or interest payments may also fluctuate as market conditions change.

    Before you invest, be sure to read a fund’s prospectus and shareholder reports to learn about its investment strategy and the potential risks. Funds with higher rates of return may take risks that are beyond your comfort level and are inconsistent with your financial goals.

    As with any business, running a mutual fund involves costs — including shareholder transaction costs, investment advisory fees, and marketing and distribution expenses. Funds pass along these costs to investors by imposing fees and expenses. It is important that you understand these charges because they lower your returns.

    If you decide to invest in mutual funds, be sure to obtain as much information about the fund before you invest. And don’t make assumptions about the soundness of the fund based solely on its past performance or its name.

  • TLIUALL 11:57 am on February 16, 2010

    BEARX–This fund will make $$$ if the market goes south.

    PRWCX–Very defensive fund

  • sandevyl 11:57 am on February 16, 2010

    Mutual Funds are safe way of investing in share market specially when you are not much aware as to how share market works or you cannot devote much time to share market.

    The amount of risk asociated with Mutual Funds is very very less as compared to that when directly applying into secondary market.

    Past records have shown that whenever people have remain invested in Mutual Funds for larger period of time, they have got back handsome returns.

    Moreover HDFC is a very good fund house with a very good track record.

    Rest assured 10 years is a real good time and you can invest your money wthout any doubts.

    Apply through SIP route and you will lessen the risk taken.

  • vegas_iwish 11:57 am on February 16, 2010

    Mutual funds are not inherently safe or risky. Money Market mutual funds are very safe. Emerging Market & Hi Yield debt funds are risky. Have to establish what you need/expect from the investment & then pick proper fund. You should invest in 1 – yes.