Sixty out of 154 MF schemes have underperformed

Friends,

Sixty out of 154 MF schemes have underperformed their benchmarks by over 30% or so in a year that saw the BSE Sensex gain over 40% according to ‘value research’. During 2006 , 85% funds legged behind the leading indices. India has 3.4 million MF investors and just 3 to 4% of total household savings find way in to MFs. The record of the funds under ULIPs of Insurance Companies is better as there size is big and they don’t remain under threat of redemption. They are also able to take longer term view of the market compared to MFs . Insurance companies are more prudent too, for they can not start new schemes after some of the existing have been spoilt as is done by MF industry.

Hari Om

Krishna Kumar Khandelwal