If you read the articles on my blog there is malice towards all – if an investor is getting poor returns there is blame to be spread all around. Obviously there is conflict of interest, sales pressures, excessive loads, high fees, charges not being transparent, etc. However one thing the media surely does not want to say is tell the investor that he/she suffer from a lot of problems THAT ARE SELF CREATED.

After all the ‘reader’ is looking for an escape when the opens a magazine – blame SEBI, the mutual fund industry, the bank, the life insurance company, the agent, …so that the ‘reader-client’ is happy.

Also one secret of the mutual fund industry is there is a HUGE GAP between the fund returns and the investor returns. The investor gets much less returns even in good schemes – because of the clients’ overconfidence, market timing, over-diversification, chasing winners of the last quarter, etc.

Unfortunately not enough research is available in India about IPO investing, chasing quarterly returns, etc. There is no scheme-wise monthly collection figures available anywhere. However when the markets are down (obviously the best time to put your money to work) NFOs will not work…and vice-versa. This hurts. Here is a good research report from Morningstar -obviously with American Data – but principles remain the same….Read on….

http://investment-fiduciary.com/2009/07/30/how-investors-lost-money-evidence-from-mutual-fund-flows/

interesting work – frankly do not think any Indian company is creating such work with Indian data – and give it away for free.

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  1. no..it was on for a few hours sometime back..and did not have any comment. To me no comment means it has not been enough for long. So I do repeat it. Also my observation is only the front page gets read. Also this is a very imp post – and not enough investors are able to appreciate the diff between investment returns and investor returns. Hopefully people like Sucheta should take up doing such research. Nobody who is seeking ads as a revenue source can afford to do pure research. It has to be somebody who is interested in doing it or the regulator. I do not see the regulator interested in such esoteric stuff…so I hope to push ..all of you to demand such research 🙂 then maybe somebody will do it. Morningstar India perhaps ? L O L

  2. Hi Subra,

    Your observation is correct. The gems are hidden in the archived posts at the right side of the page.

    Regards,

    Vincent

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