- What about multi-cap and flexi-cap? I hear that the new mandate says that multi-cap has to 25% each in large, mid, and small caps. And how do they categorize funds which go outside India to the likes of GOOG, or AAPL for the 35% chunk of investments (PPFAS fund, for example). And flexi-cap is still entirely flexi, I presume.
- As for people labeling themselves - I think it makes life simpler. Each category is already quite complex as it is. Even traditional P/B type value investors need to spend ages understanding what works and what does not. Figuring out that 12_1 momentum works, but 24_1 momentum doesn't work takes years of research. So, if someone wants to play in a smaller field, I presume they want to go deeper in that field - or they want to stick to that field for investing, and spend the rest of their time watching movies or doing something else that they care about.
A few counterpoints.
- Equity large cap since 2017: https://www.valueresearchonline.com/funds/selector/category/100/equity-large-cap/?end-type=1&plan-type=direct&exclude=suspended-plans&tab=returns-long-term - sort by 3 year returns, and you see Canara Robero and Axis Bluechip large caps beating the Indices by around 3%. But man, the rest of it down is all index funds. What the royal F happened there!!
- What about multi-cap and flexi-cap? I hear that the new mandate says that multi-cap has to 25% each in large, mid, and small caps. And how do they categorize funds which go outside India to the likes of GOOG, or AAPL for the 35% chunk of investments (PPFAS fund, for example). And flexi-cap is still entirely flexi, I presume.
- As for people labeling themselves - I think it makes life simpler. Each category is already quite complex as it is. Even traditional P/B type value investors need to spend ages understanding what works and what does not. Figuring out that 12_1 momentum works, but 24_1 momentum doesn't work takes years of research. So, if someone wants to play in a smaller field, I presume they want to go deeper in that field - or they want to stick to that field for investing, and spend the rest of their time watching movies or doing something else that they care about.
Great rant btw.