Managing Portfolio Overlapping Can Add Value!

With equity markets recovering in July, MF investors with a focus on equity as an asset class are celebrating. Often it is seen that investors tend to invest more when the equity prices follow an uptrend.

It is easy to get overboard and invest in several equity funds at the same time leading to portfolio overlap. In our cover story, we have discussed in detail how best to manage the portfolio overlap and make your mutual fund portfolio more efficient. Do share with us your feedback on the cover story.

In our special story, we have discussed intensively the difference we experience in the investment returns realized by the investors and the investment returns claimed by the mutual fund companies. One of the ways the disparity between investor returns and fund returns can be explained is that investors prefer to stay out of the market during critical moments. The story also explains how emotional decision-making influences the returns we experience in mutual fund investing. We have shared some very interesting observations in the special story which can be an eye opener for investors.

Mutual fund investing is all about staying invested in the right asset class and accumulating wealth over some time. Investors must take a long-term view of the markets and remain focused on 'goal-based investing'. Goal-based investing will help you achieve not only short to mediumterm financial objectives, but will also assist in achieving the crucial long-term financial goals. Keep reading your favourite investment journal to get updates on best MF investing practices  

Yogesh Supekar
Executive Editor