Mutual fund managers, with their skills and expertise, are expected to pick top-quality stocks that will deliver superior returns. Yet, time and again, we find most mutual fund (MF) schemes picking from a common set of stocks. Therefore, while there may be some good-quality stocks in the schemes’ portfolios, these may also contain stocks that can be a drag on the portfolio performance. Through our research and unique stock-picking formula, we have experimented with picking top stocks from the top equity schemes to create a portfolio that is expected to outperform the average equity scheme. We started our study in 2013, and have handsomely outperformed not only the benchmark, but majority of equity schemes in each and every year. This time, we pick 20 stocks. Which are these? Turn to our Cover Story to find out.
Even top MF schemes have a high proportion of stocks in their portfolio that are picked by other schemes. Yet, there are a few schemes that have identified stocks ignored by most other schemes and succeeded. Read our analysis on stocks that are common to MF scheme portfolios.
On the topic of investing, for those looking to make money in equities, R Balakrishnan outlines a few simple steps one should follow. As with all equity investments, time and patience are important. Most investors get impatient, especially when they start losing money temporarily.
In his New Year email to bank officers, the RBI governor, Dr Raghuram Rajan, has pointed out several issues that ail the system. Sucheta, in Different Strokes, writes that though he has correctly identified all the shortcomings, will this lead to the much needed change?
In Crosshairs, Sucheta writes on how RBI should consult its own regulated entities with on-ground experience first when looking for innovative ways to lend to the MSME (micro, small and medium enterprises) segment. She writes how one finance company is able to drive loan growth and keep loan defaults low, through the use of financial modelling. As always, do write to us to with your views and suggestions.