Who said performance is everything…well with no hidden meanings…I am talking about mutual funds..I have looked at many fund houses and wondered..what are they doing.

The bad, bad capital markets are still giving money to these fund houses, they have huge cash reserves and well they continue to live. One of the worst things that has also happened is name copying. Franklin Templeton has a successful scheme called ‘Bluechip’ – for whatever reasons, SBI came up with ‘SBI bluechip’. Taurus came up with ‘Taurus Discovery fund’…well you can say what is in a name. Well you will be right..these funds are in the bottom 20!

Megha Vora’s conclusion is WRONG..she says ‘which fund and when u invest is important’. That is obviously with hindsight bias she is saying that.

Here is the link…by the way did you ask why Hdfc is my favorite fund house?..hmmmm read on..I like consistency over brilliance. Any day prefer Ponting or Tendulkar or Dravid over Ganguly…:-)

http://www.moneylife.in/article/only-50-of-equity-funds-with-5-year-record-have-outperformed-their-benchmarks/14761.html

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  1. Too many funds launched in the past to gather AUM with little differentiation. I do not know whether fund managers have time to even look at some of their funds.

    Remember SBI’s One India Fund which would invest in all the regions of India. What a unique concept!

    Too many choices- Seller’s delight and buyer’s nightmare!

    I think you may add DSP also along with HDFC. A very consistent and quality fund house.

    The author of the Moneylife article needs to do some more homework. Moneylife is read by lot of people unlike wisewealthadvisors!

    UTI Mastershare was launched in October 1986 and annualized return since inception is 19.97%. A decent performance for last 25 years. (Source: Valueresearch). However I wonder how come the author says that Mastershare has given just 7% since inception!

  2. Following the success of DSP-ML TIGER fund, ING Vysya MF had introduced a funnily named LION fund !! Thankfully, other MFs didn’t follow up with monkey or crocodile funds.

  3. Subra ji,
    you are absolutely right. Consistency is the key. I wonder how some analysts and PFAs tout for long term investments and their choice of best MFs changes every year. On any given day I would chose HDFC Equity over any other fund due to it’s consitency and no restriction mandate. It’s no Tendulkar or Ponting but Jaques Kallis who does not overwhelm masses but peforms where it matters & excel in every field. A consitant performer to the core.

    P.S. – This world is cruel. Always the big guy gets the credit for everything. Tauras did not copy “Discovery” Name. In fact it was launched a decade earlier than the Big broter ICICI D was born.

  4. hi Pramod

    i did not know that…anyway Naren as a fund manager is good. I took a dig at names…but I have choosen a Milind Barve, Naren and Templeton as much for the process as the individual. I stand corrected about Taurus….

  5. Bharat Shah – The 5 year annualized return of UTI Mastershare is 11.14% vs. benchmark return of 9.28%.

    When the author says 7% annualized returns, under performing benchmark by 11%, it does not appear accurate.

    So what is mentioned in the article does not hold good either for since inception or for 5 years.

    I do not know where is the disconnect. Printer’s or Editor’s devil!

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