Stupendous #returns in various schemes of 6 wound up schemes including flows from segregated portfolios. I do not think anyone in their wildest dreams had thought of such an outcome a year back. #XIRR is the right way to gauge returns as payments were recd in different tranches.
Also, give credit where it is due. All this has happened only due to sale of the so called quote-unquote, #ILLIQUID, #LOWQUALITYDEBT. These were sold at huge premiums within a span of 12 months (6-8 months were wasted in court cases, voting for winding up etc).
These securities were sold seamlessly by another Fund House due to Court Order. This was possible only because underlying securities, structures, quality, etc was good to start with created by the #FundManager of @FTIIndia
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