THE FUNNY MUTUAL FUND SHOW

The Funny Mutual Fund Show

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Welcome to the first Funny Mutual Fund Show.

The Mumbai Monsoon is on full steam. It is pelting like crazy and its driving everyone crazy too. No one’s spared. Not even me.

As I watch the rains, my Funnybone came up checking on me and I got chatting.

So, here are snippets from this chat I had with my Funnybone.

Here we go!

Me: Funnybone, how balanced is Tata Balanced Fund?

Funnybone: (shaking her head) This Balanced Fund has put entire Tata Mutual Fund into complete imbalance.

Me: Oh! How?

Funnybone: See, it is a hybrid fund and yet the size of the equity portion in this Balanced fund is much larger than the combined AUM of all other equity funds of Tata MF.

Me: Really! Why do they even need the other funds?

Funnybone: Exactly! Don’t you see all the executives quitting?

Me: Oh yeah! BTW, where is TATA MF going?

Funnybone: It’s going down with the NANO.

Ouch!

—

Me: Funnybone, I see that HDFC Prudence has expense ratio of 0.97%, while HDFC Balanced fund has that of only 0.87%. Two similar funds by nature even performance. Yet, why is Prudence more expensive than Balanced, that too within the same fund house?

Funnybone: You must be really stupid to ask that! Who is the fund manager for Prudence?

Me: Prashant Jain

Funnybone: Who is the manager of Balanced fund?

Me: Chirag Setalvad

Funnybone: Who has got the higher salary?

Me: Prashant Jain:

Funnybone: You still don’t get it? (looking at me with hopelessness)

Me: Oh, so that extra 0.1% is to pay for Prashant Jain’s big salary.

(Irony alert: Prudence has the more expensive fund manager.)

—

Me: ICICI MF raced ahead of HDFC to be no. 1 in terms of size. Apart from that, what is ICICI MF’s claim to fame, Funnybone?

Funnybone: Oh several! Begin with the count of schemes. (pun intended)

But it gets the unique recognition of being an international killer.

Me: International Killer? Why?

Funnybone: Just look at its international funds. Is any of them alive?

Head spins

—

Me: Why are Index Funds not so popular?

Funnybone: That’s easy. The investor has no one to blame in an index fund.

—

Me: What is Edelweiss MF’s speciality?

Funnybone: Enough now. Go and do some work, will you?

Did she tell me or the fund house? I am left wondering.

 

So that was our Funny Mutual Fund Show for today.

Hope you enjoyed it! We will be back soon.

Did you like this? Then send your questions to me and I will get my Funnybone to answer them.

After all, what’s life without some fun?

15 thoughts on “The Funny Mutual Fund Show”

  1. I am 31 years old. I want to build a corpus of Rs 1 crore in 15-17 years. I am going to invest Rs 20,000 every month in following mutual funds:

    ELSS (20%)
    BSL Tax Relief ’96 -3K
    DSP BlackRock Tax Saver -2K

    Debit (10%)
    PPF -2K

    Large Cap (35%)
    BIRLA SUN LIFE FRONTLINE EQUITY FUND -3K
    Kotak Select Focus Fund -2K
    SBI Bluechip -2K

    Mid Cap (10%)
    Mirae Asset Emerging Bluechip Fund -2K

    Small Cap (20%)
    FRANKLIN INDIA SMALLER COMPANIES FUND -2K
    Ralience small cap -2K

    How is my portfolio? Do I need to drop/add funds from/to this portfolio? Please guide me

    • Iranna

      Why extra money for small caps? why only 10% to Debt? Why only 10% for mid caps? Why 35% for large caps?

      Also,you would appreciate that your ELSS also has some large cap, mid or small cap exposure.

      Is your selection based on past returns ONLY?

      Think about these.

      • Thank you for your response sir.
        1. I don’t think I am putting extra for small cap because it less than large cap. And in future I am planning to increase Mid cap and Debit.
        2. PPF has more flexibility to increase or decrease the investment every month. From last two month I am investing 6K and 5K respectively.
        3. I am keeping Mid cap space for future investment, in case I got better income(salary). 
        4. In large caps we can expect less volatile.
        5. My selection is not only based on past returns but it’s one of the parameter I considered. I gone through the objectives, expense, portfolio of the funds to make sure less overlapping, assets, launch date and finally ratings and recommendations from popular blogs and websites.
        For example, I wanted to invest in Franklin India Prima Fund but there is too much portfolio overlapping with Franklin India Smaller Companies Fund. So I didn’t pick that fund.

          • I think all are equally good funds as per my research. But since you asked to trim down the list, below 3 funds I would exclude from list. 1. BIRLA SUN LIFE FRONTLINE EQUITY FUND, 2. DSP BlackRock Tax Saver Fund, 3. FRANKLIN INDIA SMALLER COMPANIES FUND.

  3. Wonderfully simplistic way of conveying the facts embedded within the fund. The humour is the bonus. Awaiting the next one

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