Very often many investors being convinced by the alluring sales pitches of mutual fund distributors / agents / relationship managers, invest in various mutual fund schemes. But are the sales pitches such as - "Double your money in just 3 years". "You will get more than 25% returns if you invest in this scheme just for 3 years." (which we believe aren't trustworthy), making you overlook in excitement which schemes are you investing in, the option opted for, the NAV, whether your name and bank account details are correctly mentioned in the account statement, or even reading it well?
"You must take personal responsibility. You cannot change the circumstances, the seasons, or the wind, but you can change yourself." - Jim Rohn.
So well said by the famous motivational speaker, author and American entrepreneur.
Remember, it is vital for you as investors to be responsible and cognisant about your investment in mutual fund schemes. Just like you are vigilant about checking your bank account statement or pass book for correct (and timely) entries it is imperative for you to check your mutual fund account statement as well and read it too, after having received it. Here are some important details in the account statement which you must check in your mutual fund account statement.
In case of any erroneous record as far as bank account details is concerned you need to cite this to the mutual fund distributor / agent / relationship manager (if you have routed your mutual fund investment through him), or fill in a change in bank mandate slip, attached to bottom of your mutual fund account statement, and forward the same to the mutual fund distributor / agent / relationship manager or to the fund house directly. In case you change your bank account details after having done your investment in a respective mutual fund scheme, it is necessary that you sign the change in bank account details slip (attached to the bottom part of the account statement) and submit to the agent or fund house directly. For change in PAN details too you may write to the mutual fund house directly, and attach a self-attested copy of your PAN card.
Say if all the aforementioned details are rightly mentioned and if you don't have a task of getting the discrepancy(s) corrected; it is also imperative that you don't merely file the mutual fund account statement thereafter, but also read the other below mentioned details.
Our experience reveals that many investors' very often get lured by the "Rs 10" proposition and jump into buy New Fund Offers (NFOs). But is this the way you invest in mutual fund schemes? It is noteworthy that not all NFOs have delivered appealing performance to investors. Hence, it is essential to judge the value addition criteria before one jump into the NFO bus.
The market value mentioned in your mutual fund account statement helps in assessing the value of your investments as on the date on which the mutual fund statement is generated. So, it will reveal whether from the date of investment, until the date of statement of account being generated whether wealth creation has occurred or wealth erosion.
PersonalFN is a Mumbai based personal finance firm offering Financial Planning and Mutual Fund Research services.
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