# Equity Mutual Fund Sahi NAHI Hai?
**URL:** https://tradingqna.com/t/equity-mutual-fund-sahi-nahi-hai/199205
**Category:** General
**Created:** [October 31, 2026, 10:35am UTC](https://tradingqna.com/t/equity-mutual-fund-sahi-nahi-hai/199205 "2026-10-31T10:35:31Z")
**Posts on this page:** 3
**Page:** 1
### Author:  [@VijayNair](https://tradingqna.com/u/VijayNair)
#### Post date: [October 31, 2026, 10:35am UTC](https://tradingqna.com/t/equity-mutual-fund-sahi-nahi-hai/199205/1 "2026-10-31T10:35:31Z")
Considering the risks and sporadic returns, are Equity MF not suitable for 90% of India, maybe even 95% of Indians ?!?
This video makes some good points about the topic. I know many don’t like him, but some of his points are noteworthy…
[ ](https://www.youtube.com/watch?v=sFhFM6-2Avw)
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### Author:  [@neha1101](https://tradingqna.com/u/neha1101)
#### Post date: [October 31, 2026, 1:31pm UTC](https://tradingqna.com/t/equity-mutual-fund-sahi-nahi-hai/199205/2 "2026-10-31T13:31:38Z")
Impressed by his views.
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### Author:  [@VenturingSage](https://tradingqna.com/u/VenturingSage)
#### Post date: [October 31, 2026, 2:14pm UTC](https://tradingqna.com/t/equity-mutual-fund-sahi-nahi-hai/199205/3 "2026-10-31T14:14:12Z")
Thanks for sharing the video. I summarized it using AI in case someone wants to quicky go through the ideas shared. I hope you don’t mind!
1. **High skill requirement** : Successful equity investing requires an extraordinary level of skill, knowledge, and time commitment that average retail investors generally do not possess.
2. **Mutual fund limitations** : As mutual funds grow larger in size, their performance increasingly mirrors the broader market, delivering sporadic and inconsistent returns rather than guaranteed long-term gains.
3. **Necessity of “staying power”** : Equities are better suited for wealthy investors because retail investors in developing countries lack the financial staying power to survive multi-year market downturns.
4. **Prevalence of financial repression** : Government policies in India repress traditional saver choices like gold and fixed income, pushing household savings into the riskiest asset class—equities.
5. **Negative real returns on fixed income** : The lived experience of household inflation in India is significantly higher than official headlines, leaving fixed-income instruments with negative real rates of return.
6. **Gold functions as an active asset** : Contrary to claims that physical gold sits idle in vaults, it serves as an active, circulating asset and a reliable store of value for Indian families.
7. **Zero capital gains tax for foreign dollars** : To address foreign exchange shortages, India should roll out a **0% capital gains tax rate for foreign capital** to attract essential dollar inflows.
8. **Forex drain from equities and gold** : Foreign capital exits through mutual funds and domestic gold imports both create massive dollar outflows from the Indian economy.
9. **Current account deficit as the core issue** : India’s balance-of-payments challenges stem from structural current account deficits, which cannot be solved without underlying trade and economic policy changes.
10. **Flawed REER currency framework** : Evaluating the Indian Rupee using the **Real Effective Exchange Rate (REER)** framework is flawed because exchange rates are driven primarily by capital account flows rather than trade flows.