What has happened to mutual fund managers?

POSTED BY BecharaInvestor ON February 7, 2014 9:38 am COMMENTS (21)

Most of the mutual funds have given returns of 2-3% and TV continues showing the bull run this year.

Mera savings account jyada deta hai isse to!

21 replies on this article “What has happened to mutual fund managers?”

  1. anil says:

    The only advantage mutual fund manager has over us is that he has access to quality research data. I also just started investing in stock market , have earned around 30% returns within 9 months.

    You haven’t indicated how long you have remained invested ?.

  2. rahul123 says:

    Dear Becharainvestor,

    Nobody is expert in stock market! Only money (result) speaks for itself…

    If you earn money you are expert, if you don’t you are a loser.

    MF managers are human being and i think they don’t have superiority over any other investor. Why to trust somebody to manage your money (and for which you need to pay some fee). Manage it your self!

    Read about financial disasters, history, observe market carefully, you will be more equipped to take decision

    Thanks,
    Rahul

  3. BecharaInvestor says:

    Ashalanshu i can understand your sarcasm and possibly frustration on someone criticizing equity route but do you agree that mutual fund managers have not done a good job this year.

    Divya.Advisor thanks I could google out the financial express story and guess what the fund i invested was on that list. Most pundits were recommending that fund one-one half year back. So called large cap equity fund.

    Muthu which funds did you invest in?

    1. rahul123 says:

      Dear Becharainvestor,

      Please do through research before investing, have faith in the fund in which you invest for “some time”. Decide this time horizon for your self (as per your risk)….and don’t follow anybody blindly.

      Thanks,
      Rahul

    2. ashalanshu says:

      Dear Becharainvestor, am i frustrated? Absolutely not. I posted that reply to satisfy your own belief. I do not know in which funds you invested in. I do not know the performance of your funds. But I do know that no matter what happens to market, your fund manager should perform to you – That’s your belief. I simply answered for that belief.

      Am I going to suggest you to stay in Eq. funds. No. Certainly not. Why should I suggest you to do it? It’s your own money and you should better judge, what is good for you. If you feel it was and it’s better to park money in SB account rather then wasting in an Eq. fund, you are welcome to do it.

      By the way, who said that CY 2013 was a bull year for Eq. 🙂

      Thanks

      Ashal

    3. Muthu Krishnan V says:

      right now I invest only in Quantum long term equity fund (qltef). It suits my purpose and appetite. I am looking to invest in foreign currency funds in future to guard myself, have to research further.

    4. Muthu Krishnan V says:

      i too had invested in hdfc top 200 and equity but stopped couple of years back 🙂

  4. ashalanshu says:

    Dear Becharainvestor, please pull out all the money from Eq. and do not invest a single penny in Eq. from here on wards. Put all the money into SB account account to earning a moth watering guaranteed 4% return.

    Thanks

    Ashal

  5. divya.advisor says:

    I understand that BecharaInvestor 🙂 Funds have not done that well, I had read a financial express story earlier. Stay invested in good funds long time your assets will recover. For guaranteed returns consider PPF or debt funds or even LIC of India policies.
    Why get taxed heavily on interest income on s/b or FD account!

  6. Muthu Krishnan V says:

    I have obtained 7.83% annualized returns on my investments over the past 3.5 years in qltef. If NAV goes up 6%, my returns will be 12% which is my long-term target. This is definitely better than savings account or FD.

    1. rahul123 says:

      I agree, patience will pay, but instead of “long term” decide the time horizon (or target return)…periodic profit/loss booking is good.

      Thanks,
      Rahul

      1. Muthu Krishnan V says:

        yes right, i invest with a target return in mind, X amount when i am 40 and Y amount when i am 50. when market falls, I invest more according to what my excel file says and when market raised, I invest less. In future, if my actual amount is above the target required at that point of time, I will move some money to debt funds. Hope it works out.

    2. Muthu Krishnan V says:

      Today the annualized returns are 9.68%, the returns will be close to 8.5% after accounting for exit loads and taxes if i redeem them today. as i have another 15-20 years to go, hopefully a number of bad years in between will boost my returns further as i do plan to keep investing continuously.

      1. Muthu Krishnan V says:

        well, today my returns after taxes and exit loads are a little over 12%, long term rate of return on target :). if these levels stay until the end of the month, my investments for next month in equity will reduce (sort of profit booking). I will stay in for at-least the next 10 years as my target needs are for childrens marriage, education and retirement which are atleast 15 years away.

        so, BecharaInvestor you are seeing a live example of gaining while remaining patient. In exactly a month, my overall returns increased from 7% CAGR to my target level of 12% CAGR.

        invest patiently and regularly in a SIP and invest more if possible when the markets are at a low and everybody (read TV commentators) are giving sell calls and running away. You will obtain the fruits of your patience.

        any comments/queries?

        1. ashalanshu says:

          Dear Muthu, thanks for the live update.

          Thanks

          Ashal

        2. Muthu Krishnan V says:

          returns kissing 24% CAGR, mutual fund managers have done an excellent job.

  7. rahul123 says:

    I would be very interested in this topic :p

    Knowing the reply of market supporter would be fun 🙂

    1. Ashish Garg says:

      Hi Rahul123,

      I am sure you must be waiting for someone to say “LONG TERM” perspective. I think I somewhat agree to dear Becharainvestor here, most of the funds have not given good returns and don’t understand what the reason is.

      Whatever funds I have invested in are around 3-5% returns in last one year with investment done through SIP mode.

      Ashish

      1. rahul123 says:

        Dear Ashish,

        Please don’t take it personally 🙂

        Decide your investment horizon and mf (after through research and then remain invested, judge the fund on various parameters ), this is much better than blindly saying long term.

        e.g. I am investing in L&T finance for next 3 years (already have 500 @ 74, planning to accumulate another 500 over next 6 months)…that is my investment horizon, i will get out of it after 3 year (will not wait for “long term” to get good result – even though the returns are negative) and will not repent on this decision.

        Periodic profit/loss booking is important than remaining invested for so called “long term”.

        Thanks,
        Rahul

        1. Ashish Garg says:

          Hi Rahul123,

          Nothing personal ! Even I am doing what you just stated in your response. I have made about 12-15% on my direct equity investment in say 6-8 months and I am more than satisfied with that. Not even looking at sticking to 5-6 years, except for a few bluechip stocks.

          Whereas I have a few MF and keeping them and adding 1K-10K every month whenever I see market is down.

          Ashish

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