Why

Mutual Fund investments

are not
APPROPRIATE
BEFORE YOU INVEST IN
MUTUAL FUNDS OR S.I.P
KNOW YOUR FACTS
UNDERSTAND
The Difference between
Mutual Funds and LIC
 CONTRACT VALUE
Assuming you start investing Es.5000/- monthly
Mutual fund LIC
• 5000 • 3,00,00,000
• or • or
• whatever is the • whatever is the
investment Sum Assured
amount amount
 Credibility of Fund
Mutual fund LIC
• Zero • Sum Assured
• or the • Or the
• present value • Future value
• Total fund Value as • Total fund Value as
on today is on date of maturity
considered today is considered today
 In case of death
Mutual fund LIC
• Your family • Your family
gets present gets Future
Value Value
• Which usually • Which usually
is in thousands is in lakhs or
or lakhs crores
 Fact of the matter
Mutual fund LIC
• You take risk • LIC takes all
and the your Risk and
company is you are
safe safe
 Whenever market collapses
Mutual fund LIC
• Your • Your
Investment Investment is
collapses unaffected
 Returns
Mutual fund LIC
• Has no • Has Sovereign
guarantee on guarantee on
returns returns
Banks understand it as
Mutual fund LIC
• Sales pitches • Real Facts and
and lies truth
 Government message
Mutual fund LIC
• Comes with a • Comes with an
warning every assurance
time you buy every time you
buy
 Earning potential
Mutual fund LIC
• Might possibly • Guaranteed to
give positive give positive
returns returns
 Legal standing
Mutual fund LIC
• You can’t even • You can
appeal against challenge
your loss of against it even if
money in the you get a penny
court of law less in the court
of law
 Under adverse conditions
Mutual fund LIC
• Wipes your • Protects your
wealth wealth
 WHEN MARKET FALLS
Mutual fund LIC
• YOU LOSE • LIC LOSES
MONEY BUT MONEY BUT
THE MTUAL YOUR
FUND INVESTMENT IS
COMPANY IS SAFE
SAFE
 For taking major loan
Mutual fund LIC
• Will not be • Will be
considered as a considered as a
collateral collateral
 MAIN PURPOSE
Mutual fund LIC
• BEST RETURNS • FAMILY
FROM MARKET PROTECTION
AT ANY COST
 WHOM SUITS WHAT
Mutual fund LIC
• BEST SUITED • BEST SUITED
FOR FOR MARRIED
UNMARRIED PEOPLE WITH
YOUNGSTERS FAMILY AND
WITHOUT ANY RESPONSIBILITIES
FAMILY OR
RESPONSIBILITIES
 Purpose of origin
Mutual fund LIC
• CAPITALISES • ADDRESSES
ON GREED OF THE BASIC
PEOPLE FOR NEED OF
RETURNS PEOPLE FOR
RETURNS
 Basic understanding
Mutual fund LIC
• The Investment • The Investment
grows sometimes only grows all the
and falls times and never
sometimes. falls anytime.
• When it falls it can • When market falls it
wipe out most of doesn’t effect a
the capital single penny of your
investment capital investment
 Purpose of origin
Mutual fund LIC

•ONLY •ONLY FACTS

STATISTICS AND NO
AND NO STATISTICS
FACTS
 Regulatory support
Mutual fund LIC
• AMFI – doesn’t • IRDA – does
protect the protect the
investor money investor money
for a single rupee for THE
if the market COMPLETE Sum
performs Assured amount
adversely even if the market
performs
adversely
 Statutory warning
Mutual fund LIC
• Mutual Funds • Zindegi ke
are subject to saath bhi
market risk • Zindegi ke baad
• Please read the bhi
offer document
carefully
 ROR vs. RAROR and AROR
Mutual fund LIC
• ROR- Rate of Return for • ROR- Rate of Return For
MF as they claim is 15- LIC is 6-8% depending on
20% which is an not a the term of the policy
fact which is a fact

• RAROR- Risk Adjusted • RAROR- Risk Adjusted

Rate of Return could be Rate of Return for LIC
2% to 4% would also be 6% to 8%
• AROR- Actual rate od • AROR- Actual rate od
return would be 3% in return would be 8% in
the long term the long term
 No one bothers to read the offer documents.
Once you read, you will never invest in a Mutual Fund
The following is the offered by ICICI Prudential Mutual Fund.
Disclaimer: In the preparation of the material contained in this document, the Asset
Management Company (AMC) has used information that is publicly available, including
information developed in-house. Some of the material used in the document may have
been obtained from members/persons other than the AMC and/or its affiliates and which
may have been made available to the AMC and/or to its affiliates. Information gathered
and material used in this document is believed to be from reliable sources. The AMC
however does not warrant the accuracy, reasonableness and / or completeness of any
information. We have included statements / opinions / recommendations in this
document, which contain words, or phrases such as “will”, “expect”, “should”, “believe” and
similar expressions or variations of such expressions that are “forward looking statements”.
Actual results may differ materially from those suggested by the forward looking
statements due to risk or uncertainties associated with our expectations with respect to,
but not limited to, exposure to market risks, general economic and political conditions in
India and other countries globally, which have an impact on our services and / or
investments, the monetary and interest policies of India, inflation, deflation, unanticipated
turbulence in interest rates, foreign exchange rates, equity prices or other rates or prices
etc. The AMC (including its affiliates), the Mutual Fund, the trust and any of its officers,
directors, personnel and employees, shall not be liable for any loss, damage of any
nature, including but not limited to direct, indirect, punitive, special, exemplary,
consequential, as also any loss of profit in any way arising from the use of this material in
any manner. The recipient alone shall be fully responsible/are liable for any decision
taken on this material.
All Mutual fund offer Documents are similar and shocking.. This only reiterated that they
don’t stand by a single statement they make in their presentations.