2. Delay in @KotakMF#FMPs repayments to Investors & giving time to Borrowers to repay
Disclaimer: Not justifying their actions/inactions/investments etc.
Hugely negative reactions by Media/Investors/MFDs - vociferously blaming respective AMCs, filing Court cases, knocking on doors of the regulator and beyond
Did not make an effort to understand actions of the #AMCs which were done to protect #InvestorInterests
What were choices with AMCs:
1. Winding up by FT/ Delay by Kotak or,
2. Sell underlying collateral at huge discounts, pay what is recovered to #Investors & raise their hands as this is part of #CreditRisk
Post recategorizations of schemes, most erstwhile Multi Cap Schemes were converted to Flexi Cap schemes where Fund Managers can decide what Allocation to which Market cap bias.
Thanks to that, there are very few Multi Caps available now which allocates min 25% each to Large, Mid and Small Caps and balance 25% that can be at the discretion of the Fund Manager.
What is the benefit of Multi Caps?
1. It takes away Fund Manager bias of going overweight or underweight in any market Cap bias
Many have asked me about spate of IPOs and NFOs launches and my thoughts. Should they invest or not?
Another question: why are AMCs launching NFOs at expensive valuations?
My thoughts on this subject:
If you had bought 5kg of sugar from a grocer & you order another 2kgs next day, will the grocer not sell you more? They are in the business of selling you day to day groceries.
What and how much you need is your choice as a customer. You cannot blame the grocer for selling
Put differently:
Which medicine(scheme) needed for which patient(Investor) is job of a Doctor(MFD) or patient(DIY Investor). It is not job of Pharma Companies(AMCs).
Just because Pharma Cos repackage the medicines, does not mean patients should increase their dose