Biking these days is an upcoming passion in India and to be honest, the entire youth in the country is gripped by this fever. Sitting over a cup of coffee last night, we were discussing about youth going crazy for bikes, rather the latest ones which they term as the “RUNNING POWERFUL MACHINES".... One of my colleagues seemed to be saddened by the fact, His son, who is turning 18 in a couple of days, is demanding a brand new bike, which will cost this old chap a good fortune. Are we ready for the expenses ahead, was the first question striking my mind, nevertheless this discussion seemed to be leading nowhere. Just to lighten the situation, this fellow convincingly tried to crack a joke, which had a point. Talking about the Indian girls, enjoying pillion rides, his view was pretty logical. This forced me to think, how Indian girls, though apprehensive to sit cross legged, go on for a joy ride, least bothered about the driving skills, freaking out with full fun and pleasure. Contrary to this, the guy rather seems to be busy in driving, trying to convince her about his excellent driving skills, sometimes fast, at times rash as well, but in no ways of any harm to her, after all she is his responsibility..
I spent that night pondering upon quite a few essential facts. Considering the same scenario, I tried to assume myself in the shoes of an investor and my Fund Manager to be the fellow riding the bike. This is when I realised I am the same girl, relaxed and carefree, sitting behind my fund manager, I trust him blindly as I am here, just to enjoy, I know in any case, he is there for me. I am here, just to relish the fruits of his caliber.. If I am investing, my sole motive will be a handsome appreciation, a steady relationship with a long term perspective, just like the same couple in their courtship period.
A deep thought upon all this, forced me to think of yet another situation. What if the girl ever starts pin pointing about his driving, though she will not dictate him, but yes, in turn, she expects allot. Expectations are not just confined to a good return but a steady long term relationship. Investors need to follow the practice of investing money with fund managers on the basis of merit, which is anyways reflected by their past performances. No doubt, Individuals have there own preferences for investments, but in the same fashion, I strongly believe, if we compare funds on a one to one basis, merit takes it all.. As per a common practice, while picking equity funds, not only investors, but even advisors, look up towards the portfolio of short listed funds. And this is when they fail to understand, instead of poking their nose to check the composition of the same, its better for an investor to rather rely on the fund manager.
It is imperative to understand the basic reason for investment through Mutual Funds, needless to say, Indian Investors do not have an expertise in the subject related to stocks, and this is when the role of a decisive and an efficient fund manager comes into action.. If an investor was aware himself, and had all the knowledge in this world related to this subject, OH! He could have invested on his own. Am afraid this is not the case, and that is why he needs someone to guide him towards the much needed growth..
Further, a stock may be bad for me but equally good for someone else.. If a fund manager selects a particular stock, definitely he has put in lot of effort and expertise, has used allot of skill and logic, and for sure that logic is better known to him. We, as investors, need to realize and accept that instead of snooping so much into the portfolio of our invested funds; it is rather ethical to leave this vital decision to his competency and expertise in this regard.. Just like the same fellow riding the bike, he can view things from the front and rear, in any case if he takes a sudden left or right to avoid potholes, we shouldn't start worrying, he certainly is responsible enough to take care of our safety. One needs to invest with a clear mind and sheer confidence on the fund manager, the same way a girl relies the fellow, going on a date even in late evenings..
A comparative look at the past returns-based performance is more than enough, a deep study into the fund's returns, vis-à-vis its benchmark's or the peer's performance, is sufficient enough to give you a fair idea about the fund's worth..
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