Does big size of a MF have an impact on its performance? – HDFC top 200 and HDFC equity

POSTED BY Jassi ON July 2, 2013 10:56 am COMMENTS (5)

Just read an article:

http://www.business-standard.com/article/markets/hdfc-mutual-fund-equity-schemes-disappoint-investors-113070100835_1.html

Does big size of a MF have an impact on its performance? – HDFC top 200 and HDFC equity in question here…..

Want to get your views here….

I am personally investing in HDFC equity and Quantum LTE.

Rgds,

Jassi

5 replies on this article “Does big size of a MF have an impact on its performance? – HDFC top 200 and HDFC equity”

  1. Dear Jassi, as of now I’m sailing with HT200, ‘ll decide it’s fate after few months (this may take 2-3 years to decide :))

    Thanks

    Ashal

  2. bharat shah says:

    i think that in the article itself Shri Jain replied, between the lines, for the concern of big size that (in a sense) the size seems big if seen alone, but in context of total capitalization of the market , even of active portion, it is not that big.

  3. Kuntal says:

    Hi Jassi,
    While theoretically having a very large corpus can affect performance, but if the fund manager can manouvere his corpus in a way that it can consistently give above average performance, there is no need to worry. eg HDFC top 200, HDFC equity, IDFC premier equity are largest large-mid, multi, mid-small cap funds respectively; but they are consistent performers. So as of now, you should have no reason to worry.
    Tks,
    Kuntal.

  4. Dear Jassi, I’m investing my own money in HT200. should I say more?

    thanks

    Ashal

    1. Jassi says:

      Thanks Ashal. Yes, I am aware of that (from other posts).

      However, read many a times that big size can give performance problems. Just wanted to know if there are any acute reasons to worry with big sized mutual funds….

      I do trust Prashant Jain given the returns that these funds have delivered….but that’s history 🙂

      I have just purchased a book today – Common Sense on Mutual Funds: New Imperatives for the Intelligent Investor – John Bogle…….don’t know if I can get some clues here 🙂

      Rgds,
      Jassi

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