They have a herd mentality.I think the basic fault is with how results are gauged-they are forced to outperform on a qoq basis thereby having to do a lot of trading.Also they are unwilling to downgrade companies which are their clients in other businesses.The best fund would be a asset class diversified one which is not available in India.As Marc Faber said a stock broker is always bullish on stocks(it may be down now but the long term growth story...what is long term depends on how screwed up things are).The pay structure based on yearly bonuses also encourage short term outlooks.There is also excessive qoq number crunching.Without perspective numbers are meaningless but the focus on each q makes them myopic.My point is unless these factors are changed this will continue.But this is unlikely since investors chase short term out performance.In the end all ye suckers out there,there is no easy way out-dust that copy of security analysis and do your own due diligence.If you don't recognize the reference you shouldn't be investing.