Where should you invest? Stocks or MFs?

Where should you invest? Stocks or MFs?
News from Rediff:

The global financial sector is in turmoil, the Indian markets are volatile. Rupee is going down against the dollar.

The investors are at a loss, they are groping for a solution.

At this juncture, is it safe to invest in mutual funds? If so, which funds to invest in? How to evaluate the best mutual fund?

There is the eternal dilemma — hold, buy or sell.

And if one opts for ‘buy’, then which stocks to invest in? Which are the sectors that are likely to remain less volatile?

In an hour-long chat on rediff.com on Wednesday, stock market and investment expert Vinay Mahajan offered some valuable investment tips.

Here is the transcript:

Vinay Mahajan says, Hello Friends, Welcome to the Chat Session… Regards, Vinay Mahajan


jack asked, hi for a long term view which is better to invest mutual fund or stock with a view for 10 years.
Vinay Mahajan answers,  at 2012-06-27 16:05:24Hi Jack, I think you are referring to equity mutual fund. From the long term perspective equity as an asset class outperforms all other asset classes. With respect to you choice it depends on your knowledge level to direct invest in equities otherwise mutual fund is the better route for investing.


SANJAYA asked, Sir how do i choose…………… continues on Rediff

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A Dividend Investing History And Tips For Today’s Market
News from Seeking Alpha:

A piece by Morgan Stanley (MS) yesterday entitled: “Global Equity Strategy: Our Top Global Dividend Ideas” (MS client log-in required) could prove especially valuable to Seeking Alpha’s dedicated income investors. Given Morgan Stanley’s expectation of weak equity market returns in the developed world, their analysts contend that dividends will be an even greater proportion of total equity returns in subsequent periods. The logarithmically scaled graph below shows that the nominal compounded annual growth rate (CAGR) of investor returns from dividends in the United States since 1901 has been 4.9%, or over half of the total nominal CAGR of domestic equity investments of 9.5%.

Over the last generation, dividends have been relatively less important to total returns of equity holdings than they have been historically. In the 1980s, falling discount rates from a disinflationary environment favored price gains over dividend yields. In the 1990s, outsized gains in growth and technology stocks driven by a record economic expansion and the ushering in of the…………… continues on Seeking Alpha

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