COMPOUNDING IS SUITABLE FOR FIXED RATE OF INTEREST ,SAY F.D . BUT, M F IS DIFFERENT. IT IS SHARES INVESTMENTS.ACCORDING TO THE VALUE SHARES NAV OF UNITS WILL INCREASE OR DECREASE
Mutual funds will compound if one or more companies in the fund pay dividends. If not, then there's no compounding There's something called bonus shares, not sure how that works
@@danielpaul3480 there is no compounding, but definitely it has the effect of compounding. I had invested 4 lakhs in 2018, if I had continued to hold it till date, I could have easily made 15 or 16 lakhs. So it is almost three times growth in 6 years. I sold in haste, but still I made around 11 percent post tax.
yes there is no compounding, people presume that NAV will only increase gradually, that increase in NAV gives the wrong perception of compounding, its all marketing gimmick☹☹
@@JustChill76 I am not against of mutual funds, however we must agree that there is no compounding here. To make it simple, if there is a compounding in mutual funds the number of stocks should increase in some intervals which will never happen here.
The last bid is wrong 😑 info. If you put 10k month for one year it’s 120k. With 15% growth on this will be just over 8k assuming the compounding is happening every month! And if you invested all 120k at once with a 15% interest it will be 18k more
Mutual fund compounding won’t give much returns even in long term as they project and that is the truth….its all marketing strategy to sell the products
I am very sad to know that many don't know what is compounding which is studied in 7th standard. That's why I keep telling financial literacy is hardly anything in India.
@@padmanabanbalasubramanian1386 if you agree that there are rate fluctuations in market, prices go up and down, then it only matters at what price you buy and what price you sell
@@padmanabanbalasubramanian1386 Imagin a situation, NAV is 100 and it increases by 100 every year for five years (first year 100, second year 200, third year 300) and then decreases by 100 every year for the next five years (6th year 400, 7th year 300, 8th year 200) and then when you sell it in the 9th year, you would not have made any profit despite investing for 9 years (given you have bought for same amount every year for 9 years). Do the math and see. Its only at what price you buy and you sell.
@@padmanabanbalasubramanian1386 Imagine a situation, NAV is 100 and it increases by 100 every year for next 4 years (1st year 100, 2nd year 200, 3rd year 300, 4th year 400, 5th year 500) and then next 4 years decreases by 100 each year (6th year 400, 7th year 300, 8th year 200) and then when you sell it in the 9th year @100 (given you have invested same amount and bought same quantity all these years), you will end up making loss after investing 9 years. So it is only what price you buy and what price you sell.
@@rajmohanmasanam5897 Have you ever invested in MF? If you invested in MF in a diversified fund for 3 plus years you will make a good return. It clearly shows you wanted to argue, am not interested and I am not asking to invest. Enjoy putting money in FD
@@padmanabanbalasubramanian1386 Cleara pesa i am not a MF Distributor. Compounding effect pathi neenga konjam cleara pesi irukkalam as a mf distributor. At first commentsku tension aga koodatu. Neenga cleara solli tharuveenganu thaan unga videos watch panren
MF investors will get negative or zero returns due to LTCG tax increase and avg inflation in India. MF help corporates, FIIs and government only. MF investors will get alwa only. Stop SIP and invest in real estate and gold only
I have invested through sip and lumpsum from 2017 to 2020 and stopped.. Total invested 54000 in reliance small capp fund.. Now its name changed as nippon small capp... Now value is 245000 🎉
@@senmega1 super bro I'm also already started to invest in MF sip but I still don't have trust Im invest in parag Parikh elss in not sure it is good fund I think u have invested during corona period that y u got good return
HUDCO / NCC / NBCC / SIEMENS / HAL / COLGATE / KRITI INDUSTRIES / DEE DEVELOPMENT ENGINEERS / ISGEC / BL KASHYAP - top 10 shares in the Indian market that are SAFE
All questions super ❤❤❤
He's a mutual fund broker,not a financial advisor
Mutual funds are highly subjective to Market risks
There is compounding in mutual fund, not for the investors, but for the brokers and distributors
MF is win-win-win. Compounding happens to everyone. If you don't understand something take time and read before simply commenting just like that.
@@padmanabanbalasubramanian1386 completely agree. For long term investors MF is really good.
People should take health insurance ,term insurance instead of going mutual funds , mutual funds risk for normal people whoever not aware 😢
COMPOUNDING IS SUITABLE FOR FIXED RATE OF INTEREST ,SAY F.D . BUT, M F IS DIFFERENT. IT IS SHARES INVESTMENTS.ACCORDING TO THE VALUE SHARES NAV OF UNITS WILL INCREASE OR DECREASE
Mutual funds will compound if one or more companies in the fund pay dividends. If not, then there's no compounding
There's something called bonus shares, not sure how that works
@@danielpaul3480 there is no compounding, but definitely it has the effect of compounding.
I had invested 4 lakhs in 2018, if I had continued to hold it till date, I could have easily made 15 or 16 lakhs. So it is almost three times growth in 6 years.
I sold in haste, but still I made around 11 percent post tax.
Since Long time having this question. So there is no compounding in mutual funds like FD. Only we can say it's NAV increasing.
Nagarajji compounding is definitely there. But the only problem is one does not know exactly when to enter and exit.
Broooooo🤯🤯🤯🤯🤯 nav increasing - this word gave me a new point of view on mutual funds..
yes there is no compounding, people presume that NAV will only increase gradually, that increase in NAV gives the wrong perception of compounding, its all marketing gimmick☹☹
@@JustChill76 I am not against of mutual funds, however we must agree that there is no compounding here. To make it simple, if there is a compounding in mutual funds the number of stocks should increase in some intervals which will never happen here.
@@nagarajanmm868 NAV increasing itself is compounding
The last bid is wrong 😑 info. If you put 10k month for one year it’s 120k. With 15% growth on this will be just over 8k assuming the compounding is happening every month! And if you invested all 120k at once with a 15% interest it will be 18k more
Equitas FD 8.5% normal person...
Mutual fund compounding won’t give much returns even in long term as they project and that is the truth….its all marketing strategy to sell the products
Have you ever invested in MF. Simply commenting and doing nothing will always keep one poor.
@@padmanabanbalasubramanian1386 man do math you will understand
@@padmanabanbalasubramanian1386 completely agree.
I think one should first invest in MF, atleast in Nifty 50 Index Fund and then see for themselves
you keep on repeating about simple intrest.. compounding means every gain should feed back to principal
FD la yeh 7.25 percent interest kudukran ..for senior 8.50.. yearly interest repo rate increase agum..aduve podum😂mf lam no guarantee
Ujjivan Small Finance Bank 8.25% for 1 year and Jana Small Finance Bank 8.45% for 1 year .... Normal citizens
Repo rate increases aaguma😂😂😂😂
@@fredrickcastro2487 namma tn nidhi amaichar kita special ah recommend pani repo rate ah increase pani kudupaar pola😂😂
8.50% aah... omg...india varalaatril mudhal murayaaga...Pls pls yendha bank nu sollunga naanum poi podren😃😂 ungalku punniyamaa pogum...
@@RG24108 Ujjivan Small Finance Bank 8.25% for 1 year and Jana Small Finance Bank 8.45% for 1 year .... Normal citizens - check their websites
He also says inflation is more than 8% but it’s not right.
Clear explanation sir..👌how to contact you for taking advisory...
Sir 1% exit load is way too big in the long run.
why people keep saying there is compounding benefit in mutual fund, total BS, you are only presuming that NAV will gradually increase
I am very sad to know that many don't know what is compounding which is studied in 7th standard. That's why I keep telling financial literacy is hardly anything in India.
@@padmanabanbalasubramanian1386 if you agree that there are rate fluctuations in market, prices go up and down, then it only matters at what price you buy and what price you sell
@@padmanabanbalasubramanian1386 Imagin a situation, NAV is 100 and it increases by 100 every year for five years (first year 100, second year 200, third year 300) and then decreases by 100 every year for the next five years (6th year 400, 7th year 300, 8th year 200) and then when you sell it in the 9th year, you would not have made any profit despite investing for 9 years (given you have bought for same amount every year for 9 years). Do the math and see. Its only at what price you buy and you sell.
@@padmanabanbalasubramanian1386 Imagine a situation, NAV is 100 and it increases by 100 every year for next 4 years (1st year 100, 2nd year 200, 3rd year 300, 4th year 400, 5th year 500) and then next 4 years decreases by 100 each year (6th year 400, 7th year 300, 8th year 200) and then when you sell it in the 9th year @100 (given you have invested same amount and bought same quantity all these years), you will end up making loss after investing 9 years. So it is only what price you buy and what price you sell.
@@rajmohanmasanam5897 Have you ever invested in MF? If you invested in MF in a diversified fund for 3 plus years you will make a good return. It clearly shows you wanted to argue, am not interested and I am not asking to invest. Enjoy putting money in FD
Sir romba confuse panrar
No he is speaking clearly, but the interviewer is not asking the right questions
Neenga vanthu kojal clearah pesavum
@@padmanabanbalasubramanian1386 Cleara pesa i am not a MF Distributor. Compounding effect pathi neenga konjam cleara pesi irukkalam as a mf distributor. At first commentsku tension aga koodatu. Neenga cleara solli tharuveenganu thaan unga videos watch panren
there is no compounding benefit in MF, people presume that NAV will only increase gradually and that looks like compounding
@@rajmohanmasanam5897 No. U r wrong
Simply invest in Index Fund
Anyone got profit from mutual fund after 5 more years
Everyone speaking about investment only no one telling I got this much of return
@@nirmalraj2077 if I had stayed invested, I would have got 3 times of my investment. I sold in haste, but still I got 11 percent post tax
MF investors will get negative or zero returns due to LTCG tax increase and avg inflation in India. MF help corporates, FIIs and government only. MF investors will get alwa only. Stop SIP and invest in real estate and gold only
How ignorant you are! Good Luck
dei loose LTCG applies for real estate and gold also, and there is no indexation benefit hereafter
@@rajmohanmasanam5897 அருமை sir👌👌🤣🤣🤣
After 7 years also no guarantee returns..you may get negative returns..
Sir have you invested 7 years and seen negative return?
People who are commenting never invested in MF. Those who investing will not comment.
Anyone got profit from mutual fund after 5 more years
Everyone speaking about investment only no one telling I got this much of return
Those who invested are making money, those who comments like you are simply wasting your time
@@padmanabanbalasubramanian1386 correct 💯😂😂😂😂
I have invested through sip and lumpsum from 2017 to 2020 and stopped.. Total invested 54000 in reliance small capp fund.. Now its name changed as nippon small capp... Now value is 245000 🎉
@@senmega1 super
@@senmega1 super bro
I'm also already started to invest in MF sip but I still don't have trust Im invest in parag Parikh elss in not sure it is good fund
I think u have invested during corona period that y u got good return
7 years potalum we haven't get returns nu finance boosan rolling returns vachi theliva solran😂..ivaru ena na 10 years la returns kudukudam
Please share the link or video!
HUDCO / NCC / NBCC / SIEMENS / HAL / COLGATE / KRITI INDUSTRIES / DEE DEVELOPMENT ENGINEERS / ISGEC / BL KASHYAP - top 10 shares in the Indian market that are SAFE