Q. Mutual funds may be a good option but why should I not invest in the stock market directly?
World moving towards specialisation of labour
Not everyone can do everything perfectly all the time
Good to let experts handle the nuances since this is what they do all the time
A professional fund manager comes with decades of training and practice which is the differentiator
Whatsapp groups may not be the best places to depend on, for investment decision-makingKuvera QuickTakes |Stock Selection within Mutual Funds
Q: What does an equity fund manager do, What sort of process does he/she follow in fund selection?
Every fund manager has a different style for creating a portfolio and selecting stocks
A fund manager is not interested in the volatility of a stock prices, but is interested in the core business
Is the business generating economic value?
The ability of the business to create economic value and whether the factors will continue to makes sense 4-5 years down the line
Businesses within this subset that can continue generating value
Compounding of value is of utmost importance
Compounding of value can only happen if the business is able to in-turn compound its business delivery value#KuveraInsights #mutualfundsahihai #Mutualfunds #Kuvera #Education #supermoneyapp
Disclaimer: These conversations are only for educational purposes. Mutual Fund investments are subject to markets risk. Please read the offer document before investing