Mint50 | Three funds make their way into Mint5010 min read 21 Oct 2012, 09:49 PM IST
We see funds going out due to change in management and sale of fund house
Though we recommend equity- and many debt-oriented investments for the long run, a portfolio needs a review twice a year. Mint50, our curated list of 50 investment-worthy funds, is no exception. We do a thorough audit twice a year. Funds that we want to replace will have one of the following three attributes. First, an obvious, and long-term, dip in performance. Second, a change in fund management. Third, a change in the fund manager. However, we are also continuously on the lookout for better alternatives that merit mention and investment. The first one is obvious enough but the next two need qualifying. When a fund house is sold or when the fund manager changes, typically, if the fund has been doing well, the new fund manager continues with the old portfolio and its (good) effects usually continue for six to eight months. It’s only then that the new fund manager begins to stamp their personality on the fund by making subtle changes. Add another six months to a year to really judge the new fund manager’s portfolio. In the meantime we remove these funds from Mint50. We’ll bring them back if the new manager keeps the performance going.