Investing in Mutual Funds - Invite Scrutiny ??

ackyash (Director) (42 Points)

15 July 2011  

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?