#977 Why Your Mutual Fund Earns More Than You Do | Axis MF CIO | Govindraj Ethiraj | The Core Report

Description

Why does your mutual fund earn more than you do? In this episode of The Core Report Special Edition, financial journalist Govindraj Ethiraj speaks with R Sivakumar, Chief Investment Officer at Axis Mutual Fund, about why investor returns can lag mutual fund returns, how chasing past performance contributes to the gap and why SIPs have not eliminated it.R Sivakumar explains how investors can miss a fund’s strongest performance by entering after a rally and pulling back during weaker periods. Buying the best-performing mutual funds based on recent rankings may feel reassuring, but the timing of those investments can produce a very different outcome. He discusses why systematic investment plans help contain this behaviour without fully resolving it.The conversation explores why asset allocation should come before fund selection. R Sivakumar examines the balance between equity and debt, the case for global diversification and the distinction between overseas equity exposure and currency diversification. He also discusses private credit, private equity and real estate investment trusts, or REITs, including the additional risks behind potentially higher returns.Govindraj Ethiraj and R Sivakumar examine the Indian stock market outlook, corporate earnings and the changing opportunities across large-cap stocks, manufacturing and exports. Sivakumar explains why he sees scope for an earnings recovery and how private sector capital expenditure and globally competitive Indian companies could shape future investment themes.The Axis Mutual Fund CIO also discusses the pressures facing banking stocks, the influence of global investment flows and the challenge of navigating an expanding range of financial products. He identifies an advice gap between being able to buy an investment and understanding whether it belongs in your portfolio.At the heart of the conversation is a bigger question. If investors have more data and more choices than ever, why do mutual fund returns and investor returns still diverge? Sivakumar connects that