Investing in Mutual Funds - Invite Scrutiny ??

By own experience and experience of others, if one invests in mutual funds - one is inviting scrutiny proceedings.

For example one may invest big amounts  say 50 lac or even 1 crore in a 6 month FD with a bank and will not invite scrutiny, but  invest and redeem 50 lacs in liquid fund  (within the same financial yr) and scrutiny is certain. Even if everything else is same in both the above cases. CASS seems to be dislike mutual funds and system seems to be setup to discourage Mutual fund investments. I have same really poorly performing equity based  MF schemes which need to be sold and transferred to better performing MF schemes. But I'm scared that If I sell and purchase MF units, I will needlessly be inviting trouble.

What do you feel?    

Replies (1)

investing in liquid funds 

its another mode of speculation ..liquid funds are inverse proportionate to sens*x, and the investor switch more than once of his mode of holding, so i personally feel that its modified version of hedge activity in relation to market movements, 

hence big corpus allocated to such liquid funds is to be treated at par with speculation. 

scurtiny is the way to ascertain the capacity of the assesee to hold and paly with big amounts and the perpose of such activities ............

 

views of other members are welcome.

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