Happy to talk about good investing principles in mutual funds
President at Dsp Blackrock Mutual Fund
Over 20 years, I have seen investors who succeed and those who don’t - behaviours that help earn good returns and vice versa - questions that matter vs what we ask that doesn’t matter in becoming better investors
Is there any way to know about the latest portfolio(stocks) of the mutual fund? Not quarter by quarter
Hey I want to know what are the stealth methods used by Mutual funds and its managers to rip off investors. I mean things like hidden charges, Sales tactics etc.
Welcome Mr president! I have heard alot about DSP black. Both as a brand of whiskey & a mutual fund institution!! 
Performance wise DSP black mutual fund is on the rocks, as the name says it. Past performance has been great too.
My question is more about insider happenings in a mutual fund company.
1st- Please guide us how do you manage huge corpus & responsibility of trust for lacs of investors who have invested through your mutual fund company.
2nd- Being a fund manager is not an easy job & working on the top of those fund managers is something much BIGGER a responsibility.
What role do you play & how do you manage your team with regards to profitability? Do you have strict targets to make some 20 - 30% returns every month for your company from your team?
Yes 20 - 30% per month or maybe even much more. Because I heard mutual fund groups make much BIG money for themselves than their investors.
3rd - Do you as a company only operate by investing the money in different stocks, or do you also make money through frequent intraday/ swing trading ?( index, stocks, F&O)
4th - Do domestic institutions including mutual funds groups have access to insider news / insider trading?
For eg- Govt of india came up with recapitalization of PSU Banks. Don’t you think that many DIIs like LIC, govt institutions, PSU’s & some pvt institutions would have secretly taken long positions in banking shares being aware of all this well before govt of india broke out the news through finance minister Arun Jaitley.
5th - There are many shares like just dial, infibeam, earlier suzlon, & many more which gives suspicious moves on account of rumors, etc. Do you believe that promoters of these companies are playing big game behind the screens & many mutual funds companies are seen taking trades in such cases.
For eg, recent rumor of just dial getting merged with Google , resulted in huge upmove in the stock price & studying the bulk deals data, HDFC mutual fund group was too in the list who bought this stock that day.
6th - Do you have secret softwares, programs, technical indicators which are beyond the reach of retail traders & especially the automated programs which can perform endless trades , scalping etc all day & yield big profits everyday.
7th- There are many small caps/ mid caps hidden gems which double, triple & multiply in few months. Do mutual funds companies approach owners , management of such companies for exploring such opportunities & vice versa for mutual benefit?
8th- How can one become a fund manager & what’s an average salary range of a fund manager alongwith commission on profit making?
I would request you to answer all of these above listed queries in an open manner sharing maximum knowledge & experience.
Thanks
Yes of course
We publish our portfolios every month in our factsheets
Visit www.dspblackrock.com and look for factsheet
How important is timing of mutual fund investments? Is it not beneficial to invest when the markets are down ?
Timing matters - if you can buy something cheaper than before it’s always good
However there is no proven data that shows any magic formula to learn timing
How low is the lowest or which price point is the highest is all known in hindsight
A closer proxy to timing is asset allocation and disciplined rebalancing
Rebalancing every year reduces asset class which has moved up and increases exposure to asset class which has fallen down
Lastly - some thumb of rule - in panic markets when all headlines are negative and valuations too low; invest aggressively in Equity and in euphoric markets when valuations are very stretched; choose a dynamic asset allocation or balanced fund to invest
This will protect from sharp market corrections
mF industry is highly competitive and thanks to SEBI probably over regulated in favour of investors and rightly so
All charges are published in monthly factsheets so you know the fees and the overall costs involved - would urge you to look at them
Charges vary from 0.1 pc to 1.5 pc for debt funds at large and around 2 to 2.5 pc for most relevant mid to large schemes
Our fees have a cap and are governed by a sebi formula linked to size of the schemes hence there is no discretion unlike in other asset classes
mF costs in India are lower than rest of the world
Exit loads is what you should watch for and largely they are kept to control investor behaviour of not trading too often
My friends who have moved abroad often complain that investing in funds abroad is far more expensive than in India
What you should worry about is investing when MFs promote a lot of past performance during market highs
When markets are high performance looks more rosy and it may lead you to take greedy and irresponsible short term bets in funds which most often leads to disappointment
I firmly believe having a good honest advisor will help you overcome any hidden concepts which may go against your well being
Considering present scenario when markets have been trading at all time high range, I do see many analysts on Business channels promoting DSP Black rock with regards to past performance.
So you mean to say its better to stay away from DSP Black Rock fund at present moment.
Say if a fund had good returns on last 1,2,3,4,5 years,
how to evauate will it continue to returns or if the fund will get saturated?
Hello, @kalpenparekh thanks for the AMA.
Considering how India Inc is positioned now and for the next decade, what do you think is the yearly growth rate I need to factor in when I use the SIP calculator, please state both the conservative and best case number
What’s the highest return that a mutual fund can give and exactly how risky are those funds that give a very high payout
https://www.linkedin.com/pulse/when-my-sip-became-lump-sum-dsp-blackrock-mutual-fund/
This link will answer some of your queries
Equity markets don’t have a fixed return hence expecting that is unscientific
I can give you a number like 15/20 Pc but it’s not compliant at the same time there is no guarantee of achieving that return
Very simple thumb rule - equity funds should deliver 2 to 3 times of post tax FD returns over holding periods of 7 years and above
Anything less than that time horizon, returns are random
For eg there are years of 100 Pc returns and years of -50% also
The role of a good fund is to beat its benchmark consistently
So the way to analyse is in its history since inception how often has the fund beaten its benchmark on a rolling 3 years basis
If a fund Beas its benchmark 70 Pc of times, its a good score and you must invest
A small trivia - warren Buffett has underperformed his benchmark 33 Pc of times yet over so many decades has delivered 8 Pc excess returns over his benchmark for really long periods of times
Don’t worry about analysts view on our funds
Few like us and few don’t !!
You should invest in our funds if you believe we have consistently beaten our benchmarks over last one to decades
We have funds with 20 years track record with consistent alpha over its benchmark
Alpha ranges from 3 Pc to 9 Pc depending on strategy / market cap and when funds were launched
As of today - we recommend funds which can move across debt and equity - hence our equity savings fund and our Balanced fund to protect you from very sharp volatility
Hi,
This is my first question in this forum.
I want to know is there any comparison present anywhere between ‘empanelled AMCs and mutual funds’ which initial investment 500/1000/5000 Rs & sort by ‘Risk Factor’ or ‘NAV’ or ‘Expenses Ratio’ or ‘Exit Load’ or ‘Last dividend payout’?
Thanks,
@kalpenparekh, thank you for the AMA:) I do have a couple of questions:
When will the temporary suspension get revoked for DSPBR micro-cap funds for lumpsum investments?
And is this different from DSPBR small and mid-cap investments since the fund manager is the same and the portfolios are almost the same too?
Thanks in advance!