It was designed to make common men further poor by looting them. Irrespective of where sensex zooms , Mutual Fund companies always post negative trend. Hardly any company is transparent about the dividend being paid.
If you want to redeem your NAV by sending your signed papers, their response comes that your signature has not matched and this they do with various papers received from various claimanants and it matches immediately when Index goes down. To make it more clear , suppose You invested Rs.25000 at a sensex touching 20000 in year 2007. If Senxex is at again 20000 in year 2010 and you want to redeem your NAV which values Rs 25000 only by sending papers to come out of it. They claim your sign did not match. Immediately , you send again paper with signation again. By tomorrow if Sensex is at 19800 Mutual fund companies claim that NAV now values only Rs.18000. Net loss of Rs. 2000 in just 1 day. What is the point of investing in such Mutual Funds ? They are a big looters of 21 century. Earlier dacoits used to rob house by invading them and now they have don a new look and these decoits are Mutual Fund Cos. They blame market sentiment to be responsible for poor interest of Retailers in Mutual Fund masquerading the real reason that they have cheated Retail investors for years ever since their inception.
In India's dummy democracy, RBI has permitted Micro-finance Institutes to collect 52% interest from farmers and workers without sharing the risks and responsibilities.
