Most people invest in 10-12 fund houses thinking that they are diversifying well. Actually when you meet many fund houses, you realize that each one of them has a different agenda at different points in time.

For example Hdfc Mutual fund today MUST be having an agenda to show a high aum (normally they are more worried about shareholder profitability -note not unit holder). This is obvious because they need an IPO soon.

Which are the mutual funds which are under some listing pressure? Reliance (already done, so the pressure must be less, but the sponsor may be under pressure to sell – is that obvious?), Icici (it will list soon I presume), UTI (listing is round the corner), Birla, ….you are seeing all the big names, right?

Some mutual funds are under pressure to improve their Profit and Loss account – and there is no media story on how the schemes rank on the basis of expenses. Some mutual funds keep changing their charges – most times in a debt fund to allow a big investor to get the benefit of a lower charge for the period that he wants to be in that fund. Shit scary.

No journalist that I know is capable of spotting this. Not people who have large databases – like ValueReseach or Morningstar want to do articles on such shit happenings.

I would like all mf investors to read the following article and visit that blog on a consistent basis. Watch this space every 15 days. I have decided to put a link to almost all his articles. He/she does a lot of painful research…do read on 


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  1. really informative blog! thanks for sharing.

    most of the investors who invest in mutual funds, have the believe that the time and resource spent on doing market research can be minimized.

    Seems like it is not a case any more.

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