Mutual funds: Where my money is actually going
My investments are currently been managed by a financial advisor. Yes, I am not sure of myself regarding investments given my abysmal record of financial decisions. However, a part of me thinks I can be of use in the domain of personal finance.
Anyway, I was curious as to how diversified my investments are — do all fund managers invest in more or less same companies? So, I collated the portfolios of all funds my advisor has invested in and calculated the percentage of invested sum company wise — India.
We find that the top 10 companies account for ~46% of investment.
Now here’s the irony. I don’t have an account in HDFC/ ICICI / Bank of Baroda. I don’t fancy mass recruiting and creativity-killing companies like Infosys/ Wipro. Reliance’s value system is diametrically opposite t0 mine, and I prefer Hyundai cars over Maruti Suzuki’s. Yet, I am promoting these companies!
Isn’t it same for other aspects of our life? We do things which we are not passionate about. Perhaps, we need to get ourselves ‘educated’ how to sail through this life investing in our lives ourselves and not depend on external agents.