OUR BOOKS

16 personal finance principles every investor should know how to be your own financial planner in 10 steps 11 principles to achieve financial freedom
ASK A QUESTION

Hello Everyone,

We all know that a Mutual Fund Manager invests in one or more selected companies. Can the manager change the Investment portfolio of a particular MF? If yes, How frequently?

To be more clear.., suppose a Fund Manager of a Mutual Fund ‘A’ invests 100% of amount available in 5 companies namely: ‘SBI’ -10%, ‘ONGC’ -25%, ‘CIL’ -25%, ‘Infosys’ -20%, and ‘HDFC’-20% respectively.

Q1) Can the percentage of allotment be changed at any time by a Manager?

Q2) Can the Number of compaines under Investment protfolio of the fund be altered anytime by the Manager?

 

-Purna

Want FREE HELP in buying right health insurance policy for you ? Get Free Help Now


1 Answers

{ }

1 Ramesh January 7, 2011 at 5:13 pm

The investment manager, usually, do not change the mandate of the fund (a fund which has a mandate of investing in top 200 companies of BSE will not venture into the lower 300 companies of the BSE-500).

The manager and his team are responsible for maintaining the portfolio of the MF. They can choose to do it in any way they see it good. The frequency depends on their style. Some do it sparingly while others do it very frequently.

The percentages canbe actively changed by the manager, or that can change by the way the markets behave.

The number of companies canbe altered anytime. Exception, DSP focus 25 will usually keep 25 stocks only as per the mandate. Kotak 30 usually kept 30-35 stocks, but recently it has diversified more and renamed to kotak 50.

Hope this resolves your queries.
Ramesh

Reply

Hey Stranger Please Login or Register to answer.

JAGOINVESTOR FORUM STATISTICS

  • 10186
    Forum Users
  • 9127
    Questions Asked
  • 38667
    Answers Provided