Depressing Facts

CreditViolet · #1 8th August 2007, 07:54 AM

Quote:

The idea that a part-time amateur with an Internet connection and an e*Trade account should expect to out-trade a full-time hedge-fund manager with a $20 million annual research budget, a Rolodex full of industry and management contacts, and years of professional experience is, sadly, preposterous. It is, however, common.

http://www.wallstreetselfdefensemanu...ick_facts.html

uasish · #2 8th August 2007, 08:14 AM

Jesse ,
What do you personally experienced in a long haul is more imp to me than what is printed & written.

Asish

oxusmorouz · #3 8th August 2007, 08:56 AM

Quote:

The idea that a part-time amateur with an Internet connection and an e*Trade account should expect to out-trade a full-time hedge-fund manager with a $20 million annual research budget, a Rolodex full of industry and management contacts, and years of professional experience is, sadly, preposterous. It is, however, common.

eh...maybe our Indian traders are being protected by the SEBI and the RBI?

Most mutual fund managers in India (supposedly) have little clue as to what they are doing...so the handicap is reduced here, isn't it?

CreditViolet · #4 8th August 2007, 08:57 AM

Quote:

Originally Posted by uasish

What do you personally experienced in a long haul is more imp to me than what is printed & written.

I actually found the article very interesting, relevant and may I say cheeky

The preface to Stridsmans book has similar comment, will post that as well later.

CreditViolet · #5 8th August 2007, 09:05 AM

Quote:

Originally Posted by oxusmorouz

eh...maybe our Indian traders are being protected by the SEBI and the RBI?

Most mutual fund managers in India (supposedly) are supposed to have little clue as to what they are doing...so the handicap is reduced here, isn't it?

Hey dont knock our MF brethern, MF cluelessness is a global phenomena

rajaram.dilipkumar · #6 8th August 2007, 01:50 PM

Quote:

Originally Posted by oxusmorouz

eh...maybe our Indian traders are being protected by the SEBI and the RBI?

Most mutual fund managers in India (supposedly) have little clue as to what they are doing...so the handicap is reduced here, isn't it?

U are right.......MF industry facts

1. 3-5% knocked off due to commission paid to sell the funds .
2. 5% is the average operational expenses . so till now 10% knocked off.
3. Adjusted for inflation (5%) and opportunity costs the funds will have to give a return inexcess of 20% to start making money for the unit holders.
4. Apart from that internal approvals are required to buy and sell making timing(entry and exit) the market extremely difficult.
5. Most funds dont hedge so in a correcting market the funds outperform the market on the downside.
To compound the problem for the average investor there are so many MFs available in the market that it is easier to pick quality stocks rather than invest in MFs.

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