Seeing a lot of nervousness among investors in Prashant Jain's schemes over his bets on PSUs & this is just too damn funny. When you are investing in an active scheme, you're betting on the manager and his ability, period! If your manager is making you nervous, it probably means
he's taking some big active bets away from the benchmark, THAT'S WHAT ACTIVE MANAGEMENT IS. If you don't want this, then you should pick some closet index funds and pay ~2%. They'll happily hug the benchmarks. Moreover, if you are so wise and to have an opinion about stocks,
go pick stocks, what the hell are you doing in a mutual fund? Let the man do his job and evaluate the performance after some time. What's the right time period? There's no easy answer. If he gets it right, you can frame a picture of PJ in your hall or better yet, name a kid
After him. If not, there are 2000 fricking mutual fund schemes, pick another and move on with your life. Better yet, you can have an enlightenment now moment and choose index funds.
I started my investment journey with DSP TOP100 FUND, a fund that hadn't beaten it's benchmark
I started my investment journey with DSP TOP100 FUND, a fund that hadn't beaten it's benchmark
In 10 years. This was before I knew nothing about MFs. But as I started learning, I realized what a dumbass I was and what a racket I was investing in. I learnt a lesson and I paid ~1.3% for the privilege of underperforming the index. Learnt a lesson and moved on.
So, stop moaning and let your manager do his job. I also see a lot of people commenting on the managers failed stock picks like Manpasand, Noida Toll etc ex-post. This is stupid, every manager will get some picks wrong, horribly wrong even! That's what active management is.
Again, if you guys were so smart enough to have opinions on stocks - pick stocks. If you were wise enough to know a bad stock bet in advance, maybe you should start managing a fund. Of course as an investor in a fund, you're entitled to moan all you want, but what's
the point? Isn't watching Tik-Tok videos or reading The Intelligent Investor after getting drunk more worthwhile?
I like very very few active managers, but i have immense respect for them because managing big pools of money is hard business. Stop harassing them and shut up.
I like very very few active managers, but i have immense respect for them because managing big pools of money is hard business. Stop harassing them and shut up.
If you don't like active management and all the thrills, chills, and the adrenaline rush and the personality cults, or the human element and the unpredictability of it, you know what to do!
