Mutual fund: are we running the rat race?

The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.

Prajval Amin, MBA 2015-17, Vinod Gupta School of Management, IIT Kharagpur



Equity trading is both art and science of earning profits from the market. Mutual funds, in airframes analogy, are of auto pilot mode whereas trading is manual. To the minds of the experienced investors, mutual funds fare a little bit behind as compared to trading.

Whenever there is a mention of mutual funds, everyone would start fantasising the astronomical rate of returns from the Mutual Funds. However, there is much more than what it meets to the eye. It is only good only until a very small section of society is generating such kind of returns. When everyone starts getting such returns, there would be almost equal purchasing power and hence the disparity in purchasing powers will vanish.

Against what they are perceived by many nascent inverters, Mutual Funds aren’t simple jackpot boxes where you put money and start getting huge returns. There are many facets to it and unless being exposed to each, it is difficult to get a grasp over.

However bullish people might get on mutual funds, the age old equity trading leads the path as to how one can become rich!


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