PrimeInvestor has been in the limelight – across social and print media – for an investment opinion (SELL call on several funds of a fund house) we published recently. I would like to clarify a few things about such calls.
Firstly, we issue such calls with only one thing in mind – the interests of our subscribers and their portfolios. Publicity resulting from such calls is the last thing on our minds – in fact, most of it is unwelcome, if I were to be honest about it. In this case, media attention came unsolicited.
Secondly, our aim in mutual fund calls is not just to tell you the good funds to invest in, through Prime Funds and our Buy calls. It is also to help you manage your portfolio well, and that makes it just as important to issue Sell or Hold calls.
Such actions are often mistaken for short-term portfolio churn. It is not so. When either the performance of a fund is steadily poor or the risks associated with the fund or AMC is unknown, we firmly believe it’s best to move to other options than remain with a fund only for the sake of being long-term. With mutual funds, there are always alternatives for any fund. Our philosophy of long-term is staying invested. Not necessarily being wedded to a scheme or an AMC.
And, that is why, even as we issued our recent SELL call, our subscribers would have options to reinvest the money from exiting these funds – from the curated Prime Funds list or from the several funds, across categories, that we have a BUY call on.
We try to form our opinions based on an objective assessment of the situation and the options that are available to investors. And sometimes, the information available to make the assessment will be limited.
So, in situations like the recent one, our opinion may come across as a sharp reaction. We’re not saying that risk is bad – we have plenty of calls where risks are high and it’s perfectly fine to take risks to earn returns. But where the impact of an event is currently unclear but consequences grave if it does transpire, we believe it’s far better to protect wealth than run a risk in the name of returns. And tax outflow is a consequence of such risk containment. We do not do the ‘what if’ scenarios to see whether the risk mitigation makes up for the tax outflow. Such an approach cannot work especially when the consequence is a black hole that cannot be measured. As the lyrics from the Wild West song goes: “ ..the secret to survivin’ is knowin’ what to throw away and knowin’ what to keep”.
Our job is to grow AND protect your wealth. Like a game of chess, you have to play both offence and defence at the same time to win the game. You can be rest assured that, on your behalf and in the interest of your wealth, we at PrimeInvestor will remain vigilant on both sides of the game.
31 thoughts on “A short note about our recent call”
PI has been the best financial investment I have made. It is my go to place for investments and guidance. It is not easy to take firm stand in situations like these. I am happy that PI took a stand in the interest of investors. This raises the credibility bar too in my mind. Thank you for your advice. Keep up the great efforts Team PI !!!
Thank you! Vidya
Your immediate response and this clarification really helps. At the end it is upto us investors to take your inputs, chew on and make the right call. Better to be safe than sorry. Appreciate the call you made here.
🙏 thanks, Vidya
I have not followed the reactions in the media to this call. But I have been a subscriber to this platform from the start and a few years in the earlier avatar. I have interacted with some of this leadership team. Your diligence and communicating the right things for the investor stands out in every conversation and every response to a query. Very precise communication and great choice of words. You don’t go after visibility. My investment inputs starts and ends with Prime Investor for a DIY investor. Thanks for what you stand for and please keep doing what you are doing.
Many thanks for your kind words and appreciation. Regards, Vidya
Hello Team PI
Such bold calls are bound to raise eyebrows at a time when every monthly MF data is highlighted in the media. I am happy to see this clarification about your stance, As a distributor of funds, its also our responsibility as well to grow and Protect our client’s wealth.
Wishing the team all the best, Rachna Koppikar, Growyournest.com
Many thanks for your kind words. Thanks, Vidya
Thanks for the quick advice to investors. It is timely.
We have seen debacles, including of reputed fund houses like Franklin and Axis.
It is for the investors to take an independent call whether to continue or exit, depending upon their risk appeite.
In a way, your prompt and bold response will put the other players in the mutual fund industry on guard. Players would realise there are active investor research body like yours.
If investor trust is broken, it takes lot of time for the fund houses to resurrect.
I know you would have faced lof ot flak. Compliments for your bold self less action.
Ramamoorthy
Many thanks for your kind words. Keeps us going 🙂 regards, Vidya
Followed the call and exited. It was not a confused decision when the call came from PrimeInvestor team, because there are many alternatives and further actions and options is expected in next quarterly review, which is nearby. Thank You PrimeInvestor Team.
Thank you sir. regards, Vidya
Thanks for timely advice and clarity.
Thanks 🙏 Rgds Vidya
I am glad to see that PI is being more active and taking quick calls. I appreciate the recent decision to recommend an agri-business stock and the change of stance on Quant funds in a swift and timely manner. Being a long time PI subscriber this was one of my concerns earlier that decisions were not quick enough.
Thanks to entire PI team for all you guys do!
Glad to know 🙂 thanks, Vidya
We appreciate such swift advise rather being status quo for sometime.
Thanks and looking forward for your unbiased and such straightforward solutions.
Many thanks 🙏 Vidya
I also voice same appreciation for team PI being promptly unambiguous advise.
Looking forward such alert in future also..
Regards,
ASHOKE MAITY
Thank you sir 🙏 regards, Vidya
I followed the call and quit. I believe it depends on the type on investor some conservative, some more risk taking and some are seasoned who go with their institution.
‘Its common to receive different feedback. But since your buy calls made me profit I didn’t think twice on your sell call also.
I am of the opinion to change funds when it is called for tax is something you would end up pay but in the long run you will make money only if its re-invested.
Thanks and look forward for such timely advise well that’s why we have subscribed to primeinvestor.
Thank you for sharing your thoughts! Vidya
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