To a parent trying to get a child to study productively, the most irritating thing is the child’s propensity to pay less attention to the subjects and theparts of the syllabus that matter more. Perhaps, as investors, we are also guilty of the same lopsided focus. At a broader level, I often come across investors who are obsessed with their equity-fund performance and yet when you look at their entire asset base,equity will be a few per cent because much of it is in fixed income and property!
Even when it comes to mutual fund investing, one of the problems that most of us create for ourselves is that we think that choosing a fund is the most important part. In fact, not just the most important, but the part that must be done first. The entire activity of mutual fund investing gets reduced to choosing funds. Unfortunately, this sets us up for failure, and if it does get success, then that success is accidental and we don’t actually know why and how we succeeded. It’s just luck.
This odd obsession with the irrelevant parts of investing leads us to give undue attention to the parts of our investments that can play only a small or an irrelevant role.
Esta historia es de la edición January 2022 de Mutual Fund Insight.
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Esta historia es de la edición January 2022 de Mutual Fund Insight.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
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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