Gullible Sheep Will Be Fleeced Again And Again
Even when they had mediocre returns and no strong case to invest in their funds, Mutual fund and other investment companies were able to suck in billions to invest with creative presentation tactics. Fortunately now they have everything in their advantage. You ask for historical returns ranging from last 15 years and they will be able to provide you anything ranging from 25 % to 125 % ! Even more in some cases. And that is also without manipulation or misrepresentation! Simply because general tide has lifted all boats. Even a monkey picking the stocks could have produced consistent double digit returns for last decade. So now they can shamelessly advertise to get you addicted to SIP or any other MF investment plan.
That money is eventually supporting the market. Every month many thousand crore pours into the equities via such investment vehicles. Any colleague you ask and he will just tell you how he has made millions by investing in XYZ Mutual Fund ! Any media investment guru you listen to will advice to invest more during each 5/10/15 % drop. Well that will help the market to reach unsustainable heights. Dips will keep on getting shallower and after losing the patience, people will keep on investing at unimaginable valuations. Such foolishness is destined to get punished if not today then tomorrow. Once again, most investors will fulfill their destiny by losing money and will vow never to invest again ! ( until next bubble height of course ;) )
... Cont.. Part 3...