Mutual Fund Story
indices than there are funds that are outperforming the benchmark indices. Investors looking at mutual funds for investments need to avoid the underperforming funds, as getting stuck up in an underperforming fund involves a huge opportunity cost in a bull market scenario that we are in right now.
An equity fund may underperform its benchmark due to various reasons such as poor stock selection, higher management fees, asset bloating, over-diversification and higher cash-on-hand. Investor have to look at all these aspects carefully while selecting a mutual fund that is right to invest in. While looking for investing opportunities in mutual funds, it will be extremely handy for investors to know well in advance which funds are to be avoided. Avoiding investing in wrong equity mutual fund schemes is as advantageous as choosing the right equity mutual fund to invest in.