Do not jump into Mutual Funds without any expert guidance
There are some good Mutual Fund Schemes. There are too many players and some of these special funds do offer dividends that are more than 12 percent. However, in any equity linked scheme, it should be noted that the long-term capital gains is now taxed at 10% and there is also the cess that comes to three or four percent.Hence, only if the returns are very attractive, and the cumulative amount is three times the initial investment ( this happens after at least seven years in the best of Funds), there is nothing wrong in paying the tax and enjoying the money, which is still very attractive. Yet, one needs to be very careful and it is always advisable to read many reports that are often published by professionals.
Never ever depend on advise of some friends, who might know very little and give you a very wrong picture. Mutual Funds are risky investments and in some cases, the erosion of the capital amount has happened as well. One needs to be very careful with such investments.
