I know that mutual funds disclose their portfolio periodically. How reliable is that information? Does any gov agency verifies/audits that information? Is it possible that they declare good quality assets and really having only crap? It has happened earlier with UTI and that came out as a biggest scam in 90s.
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I believe we should take it at face value now, don’t think we should worry about it but anyhow they disclose only 1 month old data, not of as that day. I believe it will be audited and they have some checks and balances in place.
@Bhuvan should know more on this.
They are accurate. AMCs are among the most heavily regulated entities by SEBI.
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The data they provide will be accurate, just like bhuvan said, this is one industry which is highly regulated. However, how many MF investors go through these report and see in details the stocks or bonds which they have invested in. How many ensure that a particular MF is following the objectives and practices which were defined in the prospectus. Even if you identify any anomaly, how can you as a small time investor address these things. In my view, investors are only bothered at the NAV and the returns that are getting.
When FT closed six of the funds, few of the website were defending saying investors should have known the risk (credit risk became vogue) as they were getting higher returns on these funds during the previous years.
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