हिंदी में यह आलेख देखने के लिए, यहां क्लिक करें
One of my friend asked me whether investment in Mutual Fund is too risky? Let us evaluate his concern.
See the top 10 holding in ICICI Prudential Bluechip Fund.
As you see, top 10 holding in this fund scheme is mostly from Banking sector. If these banks grow, this Mutual Fund scheme will grow, resulting in good returns for investors. The day these banks fail, this mutual fund scheme may also fail to perform, resulting in impact on return of this fund scheme.
Now, assume that all these banks fail. Do you think if banks fail, will your deposits in bank will be safe ? THINK, THINK and THINK.
Mutual Fund’s performance is based on the performance of companies in which the fund scheme invests. Every fund scheme invests in at least 40 to 50 different companies. Fund houses have team of experts who study performances of different companies and they select only those companies to invest-in where they see growth in future. If a company doesn’t perform upto the expectation, the company stock is removed from the fund’s scheme.
Hence, performance of a fund scheme depends on the performances of the companies on which fund makes investment. Since, fund house selects only those 40-50 companies out of thousands of companies listed in Stock market where future growth is expected, hence Mutual Fund scheme is always expected to give better return. Even if 10% of companies perform poorly in which fund scheme has invested, still returns of rest 90% scheme will support the MF scheme.
Hence, based on the above explanation, mutual fund scheme are not as risky as one thinks. Stock market risks are averaged out in Mutual fund because:
- Every fund house has a team of experts that continuously does research and select only 40-50 funds from stock market that are expected to grow in future
- Return of the fund scheme is average out across selected companies, hence risks of one or two companies failing is minimized
- Since fund manager actively monitors performance of its holding companies
Please remember, Mutual Fund has given more than 15% returns over last 15 years, mainly due to active monitoring of fund schemes.
Hope, this explanation clears the doubts in the mind of new investors.
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