Tough times do not last…
Now the fund management industry will tell you the following:
- Tough times do not last
- If you invest now you will get more units
- your average cost will go down
- when the tide turns you will feel rich
- it is time to invest MORE, not less
- sip done over long term gives great results
- you do a sip just so that you do not panic at this time
What they do not tell you:
- asset management can happen only when we have assets to manage
- we are in the asset gathering business (90% of our efforts) and
- in the asset management business (10% of our efforts)
- our remuneration is a function of the SIZE of our assets, not PERFORMANCE
- we are compensated and we compensate well for asset gathering
- we are in an amazing business where 42 mutual funds, and we do not compete on price
Money quickies
much needed article for current scenario
Jay
For mutual fund investors at a beginner level (like me), your article should be more clear and simple for us to gain anything from it Whereas the first part is definitely clear, the second part went over my head. Could you please elaborate on what you meant to say in the second part so that novices like me can also benefit from your knowledge.
Jung
While your points are valid on both counts, you seem to be playing the second set of points against the first. The second set of points (which are valid) do not offset the first (which are also valid). It seems like a false dichotomy. So, what’s your point?
suresh
Your pithy articles or musings are great though colored by a tinge of cynicism and sarcasm. Just let us know if you are invested in mutual funds. Need not name the fund just mention the category and whether you invested lumpsum or have some sips going and since when. This would be great 🙂