Made Or Lost Money in Mutual Funds !!!....

And they say, "We lost money in Mutual Fund" 

This article is dedicated to all those people who complain about losing money in Mutual Funds.  Article will also turn out to be useful for those who are skeptical about investing in Mutual Funds.

Many a time people say that investing in Mutual Fund  is too risky & they lost huge amount of money. This is what they must have done:

# Invested a lump sum amount

# Invested for a very short duration (Less than 5 years) or must have withdrawn the money when the market was falling.

# Invested in a theme like infra etc.

Now let’s have a look at what actually happened over the past fifteen years.

The table shows how investing Rs.1,000 per month systematically (SIP) over a period of time grew to a large corpus.

ICICI TOP 100 Fund

Year	Tenure	Amount Invested	Present Value	Rate %
2013-14	1	12000	16674	55.19
2012-14	2	24000	34917	34.06
2011-14	3	36000	54994	26.23
2010-14	4	48000	74706	20.65
2009-14	5	60000	99600	19.01
2008-14	6	72000	130839	18.68
2007-14	7	84000	154781	16.34
2006-14	8	96000	185670	15.38
2005-14	9	108000	233236	15.88
2004-14	10	120000	304269	17.14
2003-14	11	132000	402685	18.51
2002-14	12	144000	540921	19.92
2001-14	13	156000	688258	20.42
2000-14	14	168000	803079	19.84
1999-14	15	180000	941493	19.44

# ICICI Large cap is just taken for illustration purpose. You can choose the fund according to your risk appetite.

Note:

# Investment Tenure: 1^st April of each year to 1^st March 2014

# Value as on 9^th June 2014

# Fixed amount is invested per month (SIP)

A person who had invested Rs. 1,000 per month in ICICI TOP 100 fund systematically from 1^st April 1999 to 1st March 2014 (15 years), accumulated Rs.9,41,493 as on 9^th June 2014.

Mutual Funds Vs Bank/Post office Recurring Deposit

If the same Rs.1,000 was invested per month in some Post office or bank recurring deposit for 15 years, amount accumulated would be Rs.4,20,000 (Considering a flat 10% rate over the past 15 years). Clearly a huge difference of Rs.5,21,493.

Note: Interest accumulated is tax free in Mutual Funds whereas it’s taxable in Recurring deposit.

Things to be kept in mind before investing in Mutual Funds:

# Set a goal 1^st and then invest. Goal can be you retirement, child higher education etc.

# Invest a small amount but invest systematically & regularly. Do not track the market. Eventually the market will come up

# Invest in a combination of large caps & mid cap funds

Remember, it’s not about timing in the market. It’s all about how much time you invest in the market.

*Returns from mid cap are much higher than large cap during the past few years. One should choose the funds according to the risk appetite.

Disclaimer: "Omiga Wealth Solutionz" is into distribution of Mutual Funds"