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Ramalingam

Ramalingam Kalirajan  |11181 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 01, 2024

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more
Asked by Anonymous - Jan 09, 2024Hindi
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I am absolutely confused with multiple mutual funds launched by endless FUNDS. What is going on, i think this not a healthy investment scene for small and medium investors. Just like other professionals like law, medical, private education it seems that Mutual funds are working for the benefit of Advisors, Broking Housing and big bags. It seems All of them are flourishing on insider trading and virtually fleecing their retail clients by passing on reverse recommendations. Is no Regulation required for saving the small investors from this free for all.Regulation.

Ans: It's understandable to feel overwhelmed by the vast array of mutual funds available in the market. The investment landscape can indeed seem complex, especially for small and medium investors navigating their way through various options.

Regulation is crucial in ensuring fairness and transparency in the financial markets, particularly to protect retail investors from potential exploitation. Regulatory bodies like the Securities and Exchange Board of India (SEBI) play a vital role in overseeing mutual funds and enforcing compliance with regulatory standards.

However, despite regulations, it's essential for investors to remain vigilant and informed about their investment decisions. Educating oneself about the fundamentals of investing, understanding different types of mutual funds, and seeking advice from trustworthy sources can help mitigate risks associated with investing.

While there may be instances of misconduct or unethical practices in the industry, many financial advisors and professionals genuinely strive to serve their clients' best interests. Choosing a reputable advisor or financial planner who operates with integrity and transparency can significantly enhance the investment experience for retail investors.

As investors, it's crucial to advocate for greater transparency, accountability, and investor protection measures within the financial industry. By staying informed, engaging with regulatory authorities, and holding financial institutions accountable, we can contribute to creating a more equitable and secure investment environment for all.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Reetika

Reetika Sharma  |628 Answers  |Ask -

Financial Planner, MF and Insurance Expert - Answered on Oct 11, 2025

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Why mutual fund experts always mis-guide people saying mutual funds are liquid. if market is down and your invested amount is 5%, 10% down the funds are not liquid anymore you can not liquidate your money with loss, its time consuming to sell out your real estate to raise emergency funds but you can still get loan on property in 2 days. Do certified financial planners get more perks from the banks if one invest in mutual funds? recently what i am observing is 90% of CFA's are like they do not know other means of investments but only mutual funds. they reject everything and suggest only mutual funds, SIP
Ans: Hi Dushyant,

Mutual Funds are more liquid than real estate - no doubt.
Selling funds in loss is similar to selling real estate in loss.
Loan against mutual funds - similar to loan against property.

- Investing in mutual funds without proper emergency fund in place - very bad idea.
- Investing in high risk funds without proper risk test, again a bad approach.
- Investing in equity funds for short term - again bad approach for new investors or who want to double their money.

People these days start investing thinking to double their money in a fortnight and end in trapping themselves in a vicous cycle of negative returns. Any investment without a professional's help is not a positive approach to go with.
If you have any investment potential, work with a qualified CFP to start from scratch and follow a guided plan.

No CFP gets any perk from bank. It is an individuals choice that leaves him with 10% down investment.

Let me know if you need more help.

Best Regards,
Reetika Sharma, Certified Financial Planner
https://www.instagram.com/cfpreetika/

..Read more

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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