Do you read monthly disclosure email from Mutual Fund House.

79Β°
Deal Cadet
N27

As mentioned in title and of your answer is yes then what are the important points to note down.Β 

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Pro DealBaba Pro DealBaba
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No

Deal Cadet Deal Cadet
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Same here.Β 

Cool Cool
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We'll basically the purpose of buying a MF is not to spend time in managing portfolio.

Deal Cadet Deal Cadet
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Btw it's not about managing portfolio

Deal Newbie Deal Newbie
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Usual things that I generally look for in AMC teams or specific AUMs is if;


β€Ž β€β€β€Žβ€β€β€Ž β€β€β€£β€Ž β€β€β€Žβ€β€β€Ž ‏‏are the retail investors somehow subsidising the corporate investors, instructional investors.
β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€do not know if it is as prevalent now or easy to monitor now, but AMCs often have incentive for the NAV to dip a couple of basis points around the time some quantum (say: 50 million plus) investments are to be made by institutional investors corporates/ PCGs.
β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€They do so to get a boost in the average AUMs, even if it is not in the best interests of the retail and small investors.

β€Ž β€β€β€Žβ€β€β€Ž β€β€β€£β€Ž β€β€β€Žβ€β€β€Ž ‏‏sudden or unexplained changes in the fund management team for a particular scheme/fund
β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€or the key fund managers leaving the AMC.


β€Ž β€β€β€Žβ€β€β€Ž β€β€β€£β€Ž β€β€β€Žβ€β€β€Ž ‏‏i personally am not a big fan of funds with a high churn ratio (frequently selling holding, like how day traders or short term traders do).

β€Ž β€β€β€Žβ€β€β€Ž β€β€β€£β€Ž β€β€β€Žβ€β€β€Ž ‏‏Asset allocation data for trailing 12-13 months is also something i like to monitor.

β€Ž β€β€β€Žβ€β€β€Ž β€β€β€£β€Ž β€β€β€Žβ€β€β€Ž exposure to ‏‏unsecured debt in any scheme and AMC as a whole
β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€and disclosures about roundtripping of funds.
(Many large corporates often did and do engage in shady practices to inflate the size of the balance sheet).
β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€So those things sometimes need financial forensic analysis.Maytas/Satyam, ILFS are not isolated incidents. https://www.reuters.com/article/idUSBOM525669.

Most PSU or semi PSU AMCs have infamy for their fund management teams often getting coerced by vested interests or sometimes the management teams themselves being in cahoots with such entities that raise funds via unsecured debt.
Post Mogul Post Mogul
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no
Deal Subedar Deal Subedar
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I'll let it sit there, promising myself to read them whenever I open email.

Eventually other emails come and pushes it down. I won't feel guilty about not reading them anymore smile.

I have read them sometimes. Very dry read indeed.

Deal Cadet Deal Cadet
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I just mark them read.Β 

Deal Newbie Deal Newbie
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No πŸ˜‚

I only invest in funds which I trust.Β 

Deal Cadet Deal Cadet
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Same here.Β 

Deal Subedar Deal Subedar
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You know what I actually read one today. Just a list a stocks and instruments they invest and what percentage they hold.

Deal Cadet Deal Cadet
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So after this post you thought to give it a try.Β 

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Deal's Advocate Deal's Advocate
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No

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