Tuesday, September 22, 2015

EVALUATE Mutual FUND MANAGER

 


Returns alone are not an indicator of a fund manager's worth. For sustained good performance, he needs to display skills and qualities that can make him stand out. Here are some attributes based on which investors should evaluate a fund manager:
 
INVESTMENT STYLE

How does the manager handle his portfolio? Is he fully invested at all times or does he take aggressive cash calls? Does he take contrarian picks or does he mostly mirror the index? A manager should be true to his philosophy. A fund manager who sticks to his core philosophy even in adversity will deliver sustained performance.

INVESTING TIME HORIZON

Who would you prefer: a manager who churns the portfolio frequently or one who stays invested for the long term? Go for the latter, as holding a stock for a longer period shows conviction in decision-making. It also allows him to exploit the potential of his picks. Frequent churning increases the transaction costs for the fund.

TRACK RECORD

The manager's track record is an indicator of his capability. Consistent good returns across different periods show he is adept at handling different market conditions. This is where experience comes handy. Managers with a longer stay draw can from their experience across previous market cycles and sniff out opportunities or dangers.

Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015

1.ICICI Prudential Tax Plan

2.Reliance Tax Saver (ELSS) Fund

3.HDFC TaxSaver

4.DSP BlackRock Tax Saver Fund

5.Religare Tax Plan

6.Franklin India TaxShield

7.Canara Robeco Equity Tax Saver

8.IDFC Tax Advantage (ELSS) Fund

9.Axis Tax Saver Fund

10.BNP Paribas Long Term Equity Fund

You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds

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For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

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