Hi members, In case anyone is considering investing in Standard Chartered Mutual Funds, you should know this about its Classic Equity Fund: 1. When sensex falls, this falls even more 2. When sensex rises, this hardly rises 3. When sensex was at 12612 (10-5-06), the fund NAV was 15.62 4. Now that sensex is at 12381(28-9-06) the fund NAV is 12.19, plus you may add approx 1.5 dividend they declared on 22-8-06 5. The sensex needs just 1.8% gain to reach its previous high level, 6. But the fund NAV needs nearly 14% to do the same, this is even after subtracting 1.5 from NAV for dividend given. Imagine the difference!! 7. On an annual basis, the fund is one of the worst performers in its segment. While the highest return by segment leader was 58% annualised, the Stanchart Classic Equity guys have given us 21.8%. 8.
Something fishy goes on there. I think the fund guys make more money going after specific stocks to help out unscrupulous companies/brokers rather than bother about the bonus they would other wise get if the fund did well. 9. Its NAV movement is totally out of sync with the market. 10. Suckers, like me, who have invested in this fund have been taken for a ride. I know some guys may say if I am not happy I should quit, market risks etc. are there in funds, I should not track on short term basis, and all that. I have seen such responses on the forum before but I have put up specifics.
If the fund manager is stupid enough not to know which stocks to invest in, if he always ends up holding the wrong stocks, if the market and other funds do opposite of what our guys does, THEN WE ALL HAVE TO THINK IF OUR MONEY IS IN SAFE AND HONEST HANDS. AMEN.