I am from Indonesia, interested to buy Dubai mutual fund. Where can I buy?
the message board for Dubai English speaking community
upandhi wrote:I say avoid mutual funds. Why? It's a complicated product. The firm knows all the ins and outs and you know nothing. Easy for them to manipulate things in their favor without your having a clue. Even if you are on top of things and wish to challenge their practices, what are you going to do? Get help from a UAE consumer protection agency--they don't exist. Hire a lawyer--do you really have enough money for that?
I'll give an example. When you are ready to cash in your account, you submit the application to do so. What happens? You wait weeks, even up to a month before receiving your payment. In the meantime the market is on a slide. Your mutual fund company just sits on your investment waiting as long as possible to cash it in for you, thus minimizing the payout they have to make to you. Stocks as we all know are fickle and can go up and down two or three percent in a day. When an account is cashed in can make a difference of thousands of dollars in the matter of a single day. You can lose thousands of dollars just like that, after patiently investing thousands of dollars over years.
The problem with mutual funds is you have no control over what happens with your money. No control whatsoever. Stock investing is all about timing, but all you as a mutual fund investor are allowed to do is submit applications and wait weeks for any action to be taken. This is ludicrous from the perspective of investing in stocks.