Fund managers betting on own schemes! Is it a good sign?( 13:00, 25-Aug-16)
As a prospective mutual fund investor, you are studying the performance and portfolios of various schemes to identify the best picks. You know what to look for, the performance charts and the stock weightages. They are imprinted on your mind. Do you also know of one more measure by which you can gauge the commitment of a fund manager to his scheme? That is, how much 'skin in the game' does the fund manager have. If a fund manager is bullish about his own funds, he would have invested some of his own money in his schemes. While this will not help you understand the performance, it helps you measure the seriousness of a fund manager to his portfolio. According to the new scheme information documents (SIDs) on websites of fund houses, the results are out and the verdict is in.
The redoubtable Prashant Jain of HDFC Mutual Fund heads the list of fund managers who are bullish on their own funds. He has an estimated Rs 107 crore invested in different schemes of the fund house with the biggest bets in HDFC Equity Fund (Rs 34.23 crore), HDFC Infrastructure Fund (Rs 33 crore), HDFC Prudence Fund (Rs 21.6 crore) and HDFC Top 200 (Rs 18.7 crore).
Sankaran Naren, CIO of ICICI Prudential Mutual Fund, has over Rs 20 crore invested in the ICICI Pru Dynamic Fund.