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HUSSAIN
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Joined: 15/Jan/2012
Location: Singapore
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Posts: 25
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   Topic: Mutual Fund Returns - Good Bad & the Ugly
Posted: 15/May/2012 at 8:44am |
Dear friends
See the returns of the mutual funds and indices for 3 and 5 years period.
Source:Valueresearchonline.com
Some of the best funds returns are mind blowing, even in this so called financial crisis & bear market period. It shows investing is not rocket science, u have to be a bit more discplined.
Regards
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basant
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Joined: 01/Jan/2006
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Posted: 15/May/2012 at 9:01am |
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Problem is how does an invetsor understand which fund will outperform upfront? Five years back Reliance Growth and Vision were the darlings of the industry which than faded away so the leadership changes and we keep thinking of our future on the basis of hindsight information. Personally I feel that Mutual Funds are mostly bull market creatures.
Edited by basant - 15/May/2012 at 9:02am
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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HUSSAIN
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Joined: 15/Jan/2012
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Posted: 15/May/2012 at 9:11am |
Originally posted by basant
Problem is how does an invetsor understand which fund will outperform upfront? Five years back Reliance Growth and Vision were the darlings of the industry which than faded away so the leadership changes and we keep thinking of our future on the basis of hindsight information. Personally I feel that Mutual Funds are mostly bull market creatures. |
Agree Basant ji
But for a common man, who is educated, he can start through this MF route at the start slowly, develope conviction through SIPs over a period of time and understand markets, gain some knowledge. Then he can decide depending up on this experince/returns, is this his game or not, rather burn fingers directly in stocks (mostly from tips) and never return to markets.
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Ravenrage
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Joined: 21/Jun/2010
Location: India
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Posted: 15/May/2012 at 10:24am |
Originally posted by basant
Problem is how does an invetsor understand which fund will outperform upfront? Five years back Reliance Growth and Vision were the darlings of the industry which than faded away so the leadership changes and we keep thinking of our future on the basis of hindsight information. Personally I feel that Mutual Funds are mostly bull market creatures. |
How much importance would you give to the fund manager ?
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Risk does not reside in price changes, but in miscalculations of intrinsic value .
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manish962
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Joined: 21/Feb/2010
Location: India
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Posted: 15/May/2012 at 10:27am |
Originally posted by rapidriser
To my above post I would like to add that I think Prashant Jain is one of the best MF managers in business and I have a lot of respect for his views, but the stark difference between his fund's performance since inception and last 5 years immediately reminded me of my friend's remarks.
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He is loaded with portfolio of 25,000+ crores. How is he going to outperform with such a huge portfolio? No doube he is one of the best MF manager but ever since the portfolo size zoomed, he is not able to perform.
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manish962
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Posted: 15/May/2012 at 11:16am |
Originally posted by Ravenrage
Originally posted by basant
Problem is how does an invetsor understand which fund will outperform upfront? Five years back Reliance Growth and Vision were the darlings of the industry which than faded away so the leadership changes and we keep thinking of our future on the basis of hindsight information. Personally I feel that Mutual Funds are mostly bull market creatures. |
How much importance would you give to the fund manager ? |
Equal weightage to the Fund Manager and the Fund house. Also need to consider the AUM of the fund - preferably should be between 1500 to 2500Cr. Higher than that the fund loses its outperformance as seen with HDFC Equity and HDFC Top 200.
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manish962
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Posted: 15/May/2012 at 11:18am |
Originally posted by basant
Problem is how does an invetsor understand which fund will outperform upfront? Five years back Reliance Growth and Vision were the darlings of the industry which than faded away so the leadership changes and we keep thinking of our future on the basis of hindsight information. Personally I feel that Mutual Funds are mostly bull market creatures. |
Yes indeed the MFs mostly ourperform during the bull run. But few good MFs have shown better performance during bear run(but only few).
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subu76
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Joined: 25/Feb/2008
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Posted: 16/May/2012 at 12:13pm |
Originally posted by HUSSAIN
Source:Valueresearchonline.com
Some of the best funds returns are mind blowing, even in this so called financial crisis & bear market period. It shows investing is not rocket science, u have to be a bit more discplined.
Regards |
Hey Hussain, thank you for the insightful post. My post is to make a debating point: To your statement above i'd like to point out that if we saw similar 2007 data we would find only Real estate/infra/commodity stories in the list of winners. 3-4 years back India had very limited FMCG focused funds.
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