Financial Planning

In recent past we have seen many NFO's because some infra themes were not there so one needs to add one. but in past 1 year so many big and some small fund houses/ mutual funds have started business of asset gathering, everyone are in league of becoming the 1st prize winner, they are in race.  some of them feel NFOs are growth engines to build their assets and profits. What happens when you have more and more schemes? what happen in recent time - all people associated with mutual funds get more incentives as new offer comes in, fund houses can spare more money as fund sizes are small initially. some of the fund houses / mutual funds have similar schemes in their portfolio but they are still not merging it because everyone earns more on small funds. in this race of earning or making company big, who suffers is investor. So what should investor do? 

The first common reaction in seeing market 800 points down in red is, oh my god! it is the end of the world - It feels like it’s going to go down further, I should have waited some more time to make an investment. ask yourself (how much money is in equities of your total net worth ?) So let us understand what share market (sensex) is:- When you buy Equities- you buy a SHARE/ Partnership / Holding / Business by investing in particular stock / company / equity mutual funds (equity mutual funds consist of around 20-40 stocks in one particular fund) Let us understand that equities are for appreciation, it takes time to build businesses, it may not give you 8%-9% yearly returns like your FD’s / PPF or Post office money, but it gives you inflation adjusted returns in long term as the businesses grows / makes profits – it reflects in balance sheet of the company & stock prices goes up or down.