Kuvera Insight

Kuvera Quick Takes| Mutual Funds v/s the Direct Stock Route

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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-making

    • Kuvera 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

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