Re-categorisation of mutual funds under SEBI’s directive has implications on the way funds will manage investors’ money. This has an impact on our portfolio construction and fund selection algorithm.
Warren Buffett has a lot to teach, but his lessons are far more apt for the fund managers managing the money of lakhs of investors like us. Whether it’s about choosing fundamentally good businesses or about choosing businesses one understands, his lessons are incredibly important for those whose job it is to choose companies to invest in.
Over the past 20 years or so, we have seen that the top equity mutual funds have consistently done better than the market benchmarks. Better managed diversified equity funds have delivered an annualised return that is about 3-4% better than the Nifty. This gets reflected in the return delivered by Scripbox portfolio recommendations.