How does following an objective investment process help the fund manager, and in turn, you? Investment process at the asset manager’s level are over and above regulatory guidelines. How do these processes help and what can be some of the risks?
Are Gilt Funds the safest bet after the Franklin episode? Gilt funds invest primarily in Government securities (G-secs) issued by the RBI on behalf of the Government. Since it invests in bonds that are of highest credit quality, capital protection is more or less guaranteed.
Should you park your money in Arbitrage Funds? They are equity-oriented funds that capitalise on price differences that exist between the cash and derivative market for a share. As the name suggest, the fund manager resorts to arbitrage strategies to make money.
Do you need to focus on focused funds? Focused equity funds follow a similar investment philosophy by maintaining a tight portfolio of not more than 30 stocks. Their aim is to hit the bull’s eye with the right stocks (bought with high level of conviction) and earn a higher return.
