I had taken 3 MF before the start of this current rally . . .and the returns that I have got from the 3 are very different. I had just taken the MF's for the heck of it as my portfolio allocation demanded that I needed to have some proportion of the assets parked in MF's. . .
I took 1 Debt Fund & 2 Equity Funds. The 3 have given very different returns.
Debt -1.39%
Equity MF A: 10.45%
Equity MF B: 6.47%
and my returns from actual investment in equity are in excess of 50% during the same period. . .
Well so whats the point in here? The main thing to notice here is the difference in returns between A & B, since both are equity MF's. If within one month the difference in returns are as high as 4%, then it makes sense to pick MF with caution and perhaps as much research as picking up stocks. . .Also this scores home a point that investing in direct equities carries a much higher beta than investing in MF's. Hence if the market goes up then your portfolio will definitely outperform the market and vice versa. . .also another point is that Debt MF do not necessarily always give positive returns in the short term, hence if for a very short term the monies need to be parked then debt MF might give some surprises. . .
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