8 Replies to “I am going to Invest in Mutual Fund are there any particular question I should aks the Mutual Fund agent?”

  1. If it were me…I wouldn’t use an agent. It defeats the purpose of investing. Cut out the middle man. Go to ‘American Century’, on the web.

    http://www.americancentury.com/funds/index.jsp

    This is where I started, due to the advice of a finance author that spoke at a college near my home several years ago. The mutual funds are no-load (commision free), and have performed well for years.

    An agent may have his own agenda to push. He may get kickbacks for reaching certain goals. He may steer you towards funds that are right for HIM, not you. If you don’t use American Century, find a different no-load fund that performs well, and use that company.

    Good luck.


  2. Firstly i need a good agent who is not joint only with one company bcoz, only the person who joint many companies can give u right details.
    then ask him about the companies in which the particular mutual fund invisting. then check it urself on the company site. like if u want to know about icici mutual funds, u can check on icici website.
    At last u have to find a right time to invest. like there would b no news of market fall or any sector related to ur fund.

    then invest man bcoz todays investments help in future. bye good luck


  3. if it is the NFO(new fund offer) then ask about the fund managers past performance in other funds.

    if it is existing then see the performance track of the fund for the past 1 month. and ask about the sector in which the fund is investing and see the future of that sector


  4. There are a number of questions that you should ask.

    1. What is the expense ratio of the fund? In the U S the average is about 1.5%. The better funds have expenses of about 0.75% or lower.

    2. What is the 1 year, 3 year, 5 year and 10 year performance of the fund? What is important is consistancy and long term growth. If the 5 year and 10 year performance is less than 8% annually, perhaps the fund should be avoided. Also if the fund does not have a track record it should definitely be avoided.

    3. What is the perfomance each year over the past 10 years? What you want to know is how well the fund does each year and during a bear market how well it holds up. Some can loose 30% or more of their value during a bear market.

    4. How long has current fund manager been with the fund. If less than 5 years, that manager has an unproven track record.

    5. What is the investment objective of the fund? Is it a large cap growth fund, a balanced fund, a small cap fund, a value fund, an international fund, a sector fund, etc. Understand what the fund invests in and make sure that is what you want to invest in. This is perhaps the most important point of all.


  5. Dear Friend

    You should check before choosing a MF agent whether your agent is well versed in this field, whether He has all the information.

    The Mutual Fund Industry has many different schemes to offer as of now. Apart from this, there are many technical details which MF agent should be aware of, like entry loads and exit loads, lock in periods etc.

    And there are many more details which he should know.
    Also apart from the information, He should be able to provide you after sales service.

    There are hardly any hidden charges in the MF industry, so donot worry on that count.

    What matters is that you should thoroughly check all the plans on offer and then choose a plan according to your need.

    I am based at Nashik, I am AMFI certified agent, you can contact me via my email, give me your exact requirements and I shall give you unbiased advice.

    my email id : [email protected]
    cell No : 9421174000

    Happy investing


  6. select the best stared fund from valuereserch.com n then open a ac in HSBC or Std charted and goto there mutual fund adviser and tel them u want to buy these funds ,that it ur job is done they charge u some money but is negligible n it is safe


  7. Hello,

    If you must go through an agent, you should at least the following questions:

    1. What percentage is the sales charge?
    2. Is the sales charge upon purchase, sale or charged each year?
    3. What is the mutual fund’s total expense ratio?
    4. Does the expense ratio include a 12b-1 fee,
    5. What has the mutual fund’s performance been relative to its peers over the past 5 years.
    6. Did the mutual fund achieve the solid performance with sector or country selection or security selection
    7. How has the mutual fund fund performed during a down market
    8. How would you describe the mutual fund’s volatility,
    9. How long has the portfolio manager being managing the fund.
    10. What is the portfolio manager’s overall experience and educational credentials
    11. How many analysts support the mutual fund?
    12. What are their credentials
    13. If you have a taxable account, it the mutual fund tax efficient?
    14. How is the fund diversified?

    I hope this helps.

    Michael A. Weiss, CFA
    The Editor
    The Mutual Fund Investor
    http://www.mutualfundinvestor.net


  8. if u believe on my words pls dont invest in mutual fund .
    as you know mutual fumd means- collection of fund from people & then invest in stocks.
    it has seen in most cases – mostly CEOs of MF are corrupt in nature they invest in stock to artificial hike in share price. in place of them they r pleased with bribe.
    that’s why they will give u less profit then direct stock invest ment in bull run
    but they will fall sharply in bearish mkt





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