Though the Indian finance Minister declared recently that the economy would recover from October this year, we are not so sure. My advice to our readers would be to expect initial recovery from July 2010 and not before. The real recovery may be expected after2011 only. However measures announced by Government would improve the sentiments of business circle. It is time to talk about investment in Mutual Fund. What is the meaning of Mutual fund? The Fund Houses through asset management company provide opportunity to general public to pool together their money to keep in trust mutually with them and later invest in share market through specialists known as the fund manager .The system allows smaller investors, to invest in shares of larger companies also, allowing to reap benefit as the share market goes up slowly and surely in the longer term. Some time loss is also incurred when market crashes. If you are impatient, and are in a hurry you would surely burn your finger. The world is passing through great recession. It is the time to hold your resources tightly under control.

Many people think buying share in the market is child’s play. It is not. It is always prudent to invest first in Mutual fund and have an overview of the functioning of the share market. The most investors are neither specialist nor have inclination to do research before investment. Yet all the investor desire to make money for their sustenance and for rainy days in future. The younger generation can take risk by nature and as such they are the person who should take plunge into Mutual fund arena from early in life. I do not recommend mutual fund after reaching 75th years of age, unless they have capacity to withstand risk. Some senior citizen invest in balanced funds. In balanced fund investment pattern is 60% investment is done in equity where as 40 % money are invested in debt instrument. The best balanced funds at this moment are DSPML Balanced fund, Canara Rebeco Balance, HDFC prudence, F T India balanced and Tata Balanced. (Source Mutualfundsindia.com). The best would mean the best risk adjusted return and not the present highest return of a fund. I feel senior citizen should avoid investing more money in Mutual fund or shares. You need to invest in discipline manner and with regular interval. None would go wrong in long term if funds are chosen carefully.

While I was discussing the importance of Mutual funds with some of my professional friends Mr Basu , a former Director of McLeod Russell remarked today the greatest worries of the women of India is how retrieve the money lost by their husband in share market. Hearing his remark all of us laughed. But his statement was greatly true. . In reality, Ladies have uncanny sixth sense so far as money matter is concerned. Mostly their apprehensions come true. So, before any investment is made, even after taking professional assistance, discuss with your wife and get a nod before investment is made. If you are single ask your mother or sister. You would probably get a precise answer. One of our readers asked what is the cheaper way of buying mutual funds ? My answer was if units of mutual fund could be purchased directly from the Fund house it is surely cheaper. But in all the towns’ offices of mutual funds are not located. Some of the agent provides service so well that investor prefers to go through a reputed agent. Some agents help building portfolio statements also. It would depend on your convenience whether to use agent or deal directly with the fund House. Buying directly would reduce cost of acquiring. Another readers asked which are the funds should he invest in for fifteen years to take care of his daughters higher education. I felt happy and suggested that he should visit www.valueresearch.com and find the best risk adjusted five star and four star funds and invest systematically. The regularity and discipline investment builds up real assets. However consult a Financial Advisor before investment. But Senior citizen can rely on Fixed deposit of Bank , Government Funds like SCSS and PPF.



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