The secret of our Index Beating MFs

One reply on “The secret of our Index Beating MFs”

None of the MF schemes stick strictly within their benchmark constituents.
Some of the mutual fund houses like Axis have multiple benchmarks in a single scheme.
In Birla Sun Life Infrastructure fund i found Kaveri seeds , can any one ask the fund manager the logic of including it as infra company?

I recently read SEBI chairman’s interview ,in which he too stated that majority of funds have been constantly outsmarted the index. I don’t know who made him chairman.
By common sense, investors have a natural disadvantage of 2%-2.5% as expense ratio to just break even with the index return.
I don’t know why MF Industry keep bragging that they have been beating the index.

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