Importance of Fund Manager

When it comes to mutual fund investing there are several parameters we focus on to identify winners. Investors seldom research ‘fund manager’ and his or her ability to beat the markets consistently. In the western markets, fund managers get a celebrity status, especially those who have shown an uncanny ability to beat the markets and create huge amount of wealth on a consistent basis. While analysing a fund manager’s performance can prove to be beneficial, how does the exit of a fund manager impact the performance of the fund?
 

Our cover story extensively talks about a fund manager’s exit and its impact on the fund performance. I am sure readers will get a fresh perspective and some interesting insights on the subject. I hope that going forward, while selecting the fund for investments, enough weightage is given to the quality of a fund manager.
 

Investing in debt-oriented mutual fund has become interesting after the rise in interest rates. With heavy movement in interest rates there is always a possibility of some volatility in the pricing of debt instruments. How best to create an all-weather debt portfolio? Find this out in our special story in this issue. Meanwhile, we have been discussing the merits of goal-based investing for quite some time now.
 

Going forward, for those who have a long-term investment horizon of over five years, increasing allocation to Mid-Cap funds can be a good idea. With the kind of companies that are available in the mid-cap space, which are professionally picked by fund managers, beating the markets will not be difficult. Remain invested amidst volatility and accumulate wealth using mutual funds. Systematic investment is the key to beat market volatility.
 

Yogesh Supekar
   Executive Editor