Losing the trust on mutual funds? Mutual funds sahin nahin kya??

Mutual funds are down..significantly down and people are feeling the punches. The punches are now hitting where is hurts.. in all the wrong places.

I did a check on my annual rate of return in my portfolio and over the last 5 yrs it's down to 6.5% and if there was a long term capital gains tax.. it is would be a in the 5% range!.

As I see the market today I see that the inflow from SIPs is dropping.. to half of what it was in October.

The regulators are also.not helping. Skeltons of bad decisions and bad controls are now impacting all the equity and debt markets.

I am starting to see now videos on you tube talking about how mutual funds sahi nahi hai.

And really some of it makes a lot of sense.

The financial advisors are not feeling the pinch and they continue to make money on what you invested in MF through their evergreen commissions and the same happens for the mutual fund managers.

Mutual fund advisors continue to make handsome salaries and handsome bonuses. There doesn't seem to be a negative impact on their financials when they don't do well.. and they get lavish bonuses when the market does well.... So a really nice deal for them.

Do what does this all mean... Do we let go of our equity MF and move to something different. The volatility in MFs is huge and one may never be able to get out.. and looks like volatility is here to stay.

Well.. my advice.. or thinking is that SIPs still make a lot of sense as it is a route to consistent investment.. an automated investment... And equity MFs .. there really is no other choice. Let's continue to believe that this is the right investment and these bad times will go away soon.

Also time to move away from advisor led MFs to direct MF ( my advisor hasn't spoken to me in over a year .. not sure how that is advice )

It's not easy to make these decisions and stay on course.. but its seems the right thing to do... Only time will tell if it was simplefinancialsense!

Comments welcome