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Hello there!! You are just a few steps away from taking control of your future.

Fund Carnage Shows Peril Of Ignoring Liquidity

A recent Bloomberg article indicates what we have been discussing with you over that past few weeks.

Fund Carnage Shows Peril Of Ignoring Liquidity

Indian retail investors won’t easily forgive their fund managers, nor will they quickly forget this wealth destruction. Out of 416 open-ended, onshore equity funds, 401 have lost money this year. Tech funds, the only ones to have performed decently, have been helped by Asia’s worst-performing currency of 2018, writes Andy Mukherjee.

  • Fund managers who’d hoped for private-equity type returns by discovering jewels buried in the haystacks of public markets were essentially souping up performance by forgoing liquidity
  • Now that the markets are punishing them for that recklessness, the search for the elusive alpha is over — in infrastructure; power; banking and finance; small-, mid- and micro-cap shares; transport and logistics; value stocks; state-owned firms; business cycles; and every other fad
  • With fund asset values collapsing, what happens if investors get up and leave?