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Aim: Invest in medium and large sized high growth companies with competitive advantages and financial strength Performance Driver: Why Invest? Flipside: The fund's few contrarian bets may impact short-term performance Invest if: You are looking for tax deductions on investments with equity exposure but low risk tolerance |
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A manager may be the difference between the best and worst funds. Here's how you can find the right one Does a mutual fund manager make a difference to your investment? The answer may not be as easy as you think, since most best-performing mutual funds have moved away from individualistic fund management to process-driven methods, limiting the scope of an individual's role in investment decisions. In fact, many fund managers would speak at length about how the "system" their fund house has in place makes their task of picking stocks easy even though it restricts their freedom. Still, the question is important, especially after recent reports that the Securities and Exchange Board of India ( Sebi ) may ask fund managers to disclose to investors their track record of managing money. Let us take a look at the universe of large-cap funds over the past five years. According to Value Research, an independent mutual fund tracking firm, the topper in the category is DSP...