History throws up conflicting examples. On the one hand, you have the legendary Peter Lynch's US-based Magellan Fund that bought a whopping 1,400 stocks and yet gunned out over 29 per cent annualised returns over a 13-year period, which prompted even the great man to once remark: "No wonder, I'd gotten a reputation for never having met a share I didn't like."
And on the other end is the riches-to-rags story of Morgan Stanley Growth Fund, famous for being the first foreign fund that launched in India and infamous for holding about 300 stocks in its portfolio at one point before exiting the country in tears.
With the past throwing up such a fractured mandate, we decided to look at present-day funds in India and whether such bloated funds have generated alpha.
Finding fatty funds
First and foremost, we went looking for actively-managed diversified equity funds in India.
Diese Geschichte stammt aus der August 2023-Ausgabe von Mutual Fund Insight.
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Diese Geschichte stammt aus der August 2023-Ausgabe von Mutual Fund Insight.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent? Anmelden
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'Since Sahi Hai drive launch, industry has grown over twofold'
The AMC’s marketing and corporate communication head also lauds MFCentral and MF Utility
'Earlier, not many knew of mutual funds; now SIP is a verb'
The CMO also explains how 4G, fintechs have elevated mutual funds’ reach
'MFCentral is the most impressive of online platforms'
Shah says though passive funds are growing, there’s a long road ahead
'Fintechs are driving mass financial inclusion'
Shah also lauds the pace at which distributors have embraced technology
'A Maldives tour guide knew of the Mutual Fund Sahi Hai drive'
Interaction with Edelweiss’s senior VP and head of products and marketing
'More distributors will come to MFCentral, MF Utility'
Goyal feels they can grow their business five times, 10 times with tech
'The size of passive funds has grown 36 per cent in a year'
Parija explains how mutual funds have gained traction
Tomorrow, and tomorrow, and tomorrow...
There are a total of about 1.1 lakh crores of rupees invested in India’s mutual funds and the number of investors is now about 12 crore