Most retail investors hoping that Fund Managers, being professionals, will earn them a high return seek investment in MFs. More often than not, when a MF reports superior performance between two specific dates, sizable retail funds are pumped in. This is done with a belief that the performance will be repeated. Is this a right strategy? Vivekam ventured to check out!
We picked the first day of each month of the current year (till Nov 2018) and listed down the top ten funds on those days based on returns for past one year. No fund managed to be in the top ten on all occasions. Only one fund figured in the top ten, 8 out of 11 times, while majority of the funds just showed up once or twice. This illustrates that no mutual fund is consistent with performance and the chances are that the fund you selected, may not even be in the top ten the very next month. Also, an average investor invests in more than just one fund. So, even if he/she had a couple of top performing funds, the average return from a low performing fund from the fund folio will drag the overall return down.
The key to staying on top is consistency, which has been delivered by Vivekam. Vivekam’s Process Driven investment strategies have consistently beaten not only majority of the top mutual funds but also the benchmark index, Nifty. We took all data points of investment of all our clients and compared them with all MFs in the country having an AUM of more than 5,000 Crores. Then we tracked how they could have fared, if they were to go with the MF Schemes.
(Note: The returns shown above are Compounded Annual Growth Rates)
The returns shown are for the first ten months of the current year. As you can see in the table above, Vivekam’s investment product, BIO Growth was always among the top ten performers except, in the month of September. In fact, Vivekam was in top three in 9 out of 10 months and also beat Nifty by big margins in those months.
The time tested and process driven strategies used at our harbor, are tailor made for investors of all types and have consistently resulted in higher returns than most of the mutual funds and the index (Nifty). Individuals invested with us are more likely to find themselves in the top performers’ category, majority of the times.