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This article highlights some of the key aspects of a mutual fund investment. Retail investors feel confused by the plethora of mutual fund schemes on offer. The article attempts to create awareness about MFs among the investors.
You can teach a student a lesson for a day; but if you can teach him to learn by creating curiosity, he will continue the learning process as long as he lives.
Manmohan, a typical marketing professional, rose to the position of a General Manager (marketing) having started his career as a marketing executive with a multinational company. His current savings include accumulated provident fund, equities and tax saving bonds.
Manmohan had a keen interest in the share market. He bought or sold shares occasionally. The market value of the equity investment was Rs. 5 lakh. His participation in the stock market was limited to participation in good IPOs and buying scripts of reputed companies from the secondary markets. He invested generally on the advice of his friends and financial journals and traded in stocks through a broking agent. He always had a feeling that while buying shares looked very easy, selling was a laborious process involving voluminous paper work such as executing delivery instruction form and waiting for realization of the sale proceeds. He always felt that it would have been nice, if he could avoid all the paper work and instead trade online. (Exhibit I Blank delivery instruction form). |
