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Saturday, April 11, 2009

DOs and DONTs - Investing in Mutual Funds

DO'S
  • Read the offer document carefully before investing.
  • Note that investments in Mutual Funds may be risky.
  • Mention your bank account number in the application form.
  • Invest in a scheme depending upon your investment objective and risk appetite.
  • Note that Net Asset Value of a scheme is subject to change depending upon market conditions.
  • Insist for a copy of the offer document/key information memorandum before investing.
  • Note that past performance of a scheme is not indicative of future performance. Past performance of a scheme may or may not be sustained in future.
  • Keep track of the Net Asset Value of a scheme, where you have invested, on a regular basis.
  • Ensure that you receive an account statement for the money that you have invested.
  • Update yourself on the performance of the scheme on a regular basis.

DON'TS

  • Do not invest in a scheme just because somebody is offering you a commission or other incentive, gifts etc.
  • Do not get carried away by the name of the scheme/Mutual Fund.
  • Do not fall prey to promises of unrealistic returns.
  • Do not forget to take note of risks involved in the investment.
  • Do not hesitate to approach concerned persons and then the appropriate authorities for any problem.
  • Do not deal with any agent/broker dealer who is not registered with Association of Mutual Funds in India (AMFI).

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Disclaimer - All investments in Mutual Funds and securities are subject to market risks and uncertainty of dividend distributions and the NAV of schemes may go up or down depending upon factors and forces affecting securities markets generally. The past performance of the schemes is not necessarily indicative of the future performance and may not necessarily provide a basis for comparison with other investments. Investors are advised to go through the respective offer documents before making any investment decisions. Prospective client(s) are advised to go through all comparable products in offer before taking any investment decisions. Mutual Funds and securities investments are subject to market risks and there is no assurance or guarantee that the objectives of the fund will be achieved. Information gathered & material used in this document is believed to be from reliable sources. Decisions based on the information provided on this newsletter/document are for your own account and risk.


In the preparation of the material contained in this document, Varun Vaid has used information that is publicly available, including information developed in-house. Some of the material used in the document may have been obtained from members/persons other than the Varun Vaid and which may have been made available to Varun Vaid. Information gathered & material used in this document is believed to be from reliable sources. Varun Vaid however does not warrant the accuracy, reasonableness and/or completeness of any information. For data reference to any third party in this material no such party will assume any liability for the same. Varun Vaid does not in any way through this material solicit any offer for purchase, sale or any financial transaction/commodities/products of any financial instrument dealt in this material. All recipients of this material should before dealing and or transacting in any of the products referred to in this material make their own investigation, seek appropriate professional advice.


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