Drawbacks of mutual funds

**Cayote** · 17-11-2010

I am looking to enter in the industry of mutual fund as i am looking to make some money out of it, but i know that along with the benefits, the mutual fund also has some drawbacks. So can you provide me some of the drawback of the mutual fund, so that i can remain alerts or in the best place? Please do try to help me, as i greatly need your support. Thanks.

**Sonic** · 17-11-2010

I think that the biggest disadvantage of investing the money in mutual fund is that the return is not assured. So if you are planning to invest you money in the mutual fund, before doing this keep one thing in mind that mutual funds do not offer assured returns, so due to this reason there is a lot of risk involved in it. Mutual funds are also not guaranteed by the government. So i hope that i have provided you some information on the drawback of mutual fund.

**xanix** · 17-11-2010

I think that there is lot of risk involved in the mutual fund investment. This is because if you invest the money in the mutual fund, then it depends upon the manager for making the right decision regarding the particular fund. When does not performs well, then in this situation you will not be able to make the profit as you have expected from that particular fund. I hope that you must have got this out.

**Agamjot** · 17-11-2010

I am also planning to invest in a mutual fund. Before investing the money i want to clear my query, so can anyone tell me that what things we have to keep in the mind while investing the mutual fund? Please do suggest it as i greatly need it. I will be very much thankful to you if you will provide me this help. Please help. Thanks.

**Bansi_WADIA** · 17-11-2010

While investing in the mutual fund you have to keep the following things in mind.

Do not invest more money in single mutual fund.
Try to invest the money for a short period of time.
Look for the company which has a strong base.
Do not invest if the market condition is unstable.

I hope that if you will follow all this steps, then it will definitely help you out.

**Cayote** · 18-11-2010

Thanks for the reply. I have referred the above two posts and you have really explained well, the draw backs of the mutual fund. I think that this will really help me in investing my money at a proper place. Also the post which is given by Bansi_WADIA, is really nice. So finally i would like to thanks once again to all those who have posted their replies above.