2 Comments

    • Dear Prof George.

      I don’t track individual mutual funds much. As a rule, I always dis-regard new and untested Mutual Funds. In fact there is nothing to like in a new Mutual fund. The fund itself is new, you don’t know which companies they will invest in, how good the fund manager will be etc.

      Somehow market always creates a hype around ‘new fund offerings’ as if it is a great opportunity. The fact is you never know whether they will be good or not.

      An analogy will be a new person joining Indian cricket team. You don’t know how well this guy is going to perform for the country. If I were to choose someone to bat for my life, I would choose Sachin or Dravid rather than the new guy. You get the idea?

      If you choose to go via the mutual fund route, always choose a fund which has atleast 3 or more years of operational track record. Some good funds have been long term wealth creators (e.g HDFC equity) for past several years. Personally I like Parag Parikh Mutual Fund (http://www.amc.ppfas.com/#axzz3jAWk13SQ) based on what I read about their philosophy and portfolio construction and track record. I have not invested in this fund nor I am making any recommendations, but if I were to look at investing via a mutual fund, I will consider this. Please make your own decision.

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