As we step into a new financial year, I wish you a very happy and prosperous financial year. I
would like to inform the recent changes in the mutual fund industry.
Due to SEBI guidelines on scheme classification you will see changes in the names of some
funds you hold.
For the funds I’ve recommended, there has been no major changes in their fundamental
attributes and it is only change in names of the funds. So you need not worry about the same.
Expense ratio of funds going to brought down by 0.15% by SEBI. With TRI (Total return Index)
benchmarking and reclassification of schemes the landscape of the funds may undergo changes
in the future. I’m keenly watching the developments and would suggest suitable changes at an
appropriate time.
Though I send monthly portfolio updates, it is better to see it a once or twice in a year to avoid
emotional highs and lows.
As Graham said in the short run markets is a voting machine. But in the long run it is a weighing
machine. In the short run markets move on sentiments, liquidity, but in the long run it is only
strength in the earnings of corporates which will drive the markets.
Those of you investing with us since long time have been experiencing the importance of
following asset allocation through performance of portfolio.
Hence it is important to ignore short term noise in the markets, follow asset allocation and
invest for a very long term to get the real benefit of compounding and fulfill your investment
objectives.
Happy Investing…