Dear All,

Please find below a good article as reproduced by Mr. Rajesh Krishnamoorthy, Ifast. The article is on the stock pick by fund managers and its performance, the comparison is on a international basis for your reading.

Your Mutual Fund May Be Too Lazy

It is well documented that on average active mutual fund tends to underperform the market. However, there is now a further issue with mutual funds according to the recent research of Antti Petajisto formerly of Yale University and now at Blackrock.

The problem is this. The point of owning a mutual fund is paying a team of analysts to pick stocks on your behalf, but according to this research, a significant group of mutual funds are no more than “closet indexers”, closer to following the market than trying to beat it. This matters because not only are you paying a high fee, you aren’t getting what you might expect. It’s a little like paying a premium for Gucci loafers and then discovering that the shoes you received are remarkably similar to a pair from Target.

Personal Finance (Photo credit: 401(K) 2013)

The average mutual fund in the study had a fee of 1.29% a year, whereas a passive ETF that tracks US stock can currently be held for as little as 0.05% a year. For example, the Vanguard S&P 500 tracker with ticker VOO costs 0.05%. So the average active fund costs 25 times more than the passive ETF (though costs have fallen in a few cases since the study). That’s a pretty steep price premium. To put that in perspective bear in mind that a Porsche 911 is ‘only’ 5 times the cost of a Toyota Camry, or flying first class is normally 3-6x the cost of an economy seat. However kicker here is that this, and other data, suggests that performance of passive ETFs is superior, precisely because of their lower fees. Unlike with cars, flights or shoes, in finance the fees you pay matter a great deal since they eat into your savings.

If you find that result surprising, take note that even Morningstar has come to the same conclusion, finding low fees to be a superior indicator of performance than their very own star rating system. Basically, even before this issue, active funds tend to underperform the index by -0.41% a year on average after costs, so you tend to end up behind with active funds based on the data, even before dealing with the potential risk and excessive fees of owning a closet tracker.

The active fund issue is this. For the 180 funds that are identified as closet indexers which is about 16% of all US equity funds studied , the active share is 59% and the average fee is 1.04%. This means that you are actually paying 1.76% for the proportion of the portfolio that is actively managed. This is because the remaining 41% of the fund is almost certainly no better than a tracker, and you could own a tracker for 0.05%. In essence many active funds aren’t picking enough stocks in large enough proportions to deviate from their benchmark in a meaningful way. As a result their performance is very likely to resemble that of the index, which is not the point of owning an active fund.

Lazy Afternoon Drifter (Photo credit: carterse)

So we now have two problems. Active funds underperform the index, and several of them appear to be expensive index trackers.  The Growth Fund of America AGTHX is one example according the research, it is an extremely large fund with over $140 billion in assets per recent reports. However it’s active share is relatively low at under 60% as of 2009, and hence the fees charged are relatively high given how much of the fund tracks the index based on Petajisto’s research. This is perhaps not surprising, as the fund with $140 billion in assets has such significant market impact that it is extremely challenging to be sufficiently agile to move into and out of stocks without adversely impacting their price. Nonetheless, it appears you save money and obtain a similar result with a passive ETF, or if you really want an active fund despite the prospect of underperformance, on average, then you should look elsewhere.

So we have one more problem for expensive active funds. Academics have found that performance has on average been poor in multiple prior studies, but now it appears a reasonable proportion of them have been investing as overpriced index trackers all along.

The views expressed represent the opinion of the author and are not intended to reflect those of FutureAdvisor or serve as a forecast, a guarantee of future results, investment recommendations or an offer to buy or sell securities.

regards

How to have a Recession proof home!

Couple of days back, my 10 year old son used the word ‘Recession’. When I asked him if he understands the meaning, he confidently explained ‘We know it is recession, when people start losing their jobs’!

Hearing this from a Vth grader was my moment of realization! It made me realize that the word ‘recession’ is no longer confined to the books on Economics or business news papers. In fact, in past few years this word has appeared and been used so often in our lives that even kids can explain it. No part of the world, be it Asia, Europe or America, seems to have remained untouched from the effects of ‘Recession’.

So, what is recession?

What is Recession and what’s our role in it as an individual?

Recession is known by many words, like, Downturn, Slump, Slowdown or Economic decline. It is generally identified by two or more consecutive quarters of negative GDP growth. In simple words, recession is temporary economic decline during which trade and industrial activities are reduced.  It is marked by declines in productivity and investment and high unemployment.

As an individual we have very limited role to play in the country’s economy. Economic cycles and fluctuations are beyond an individual’s control. We only get to face the consequences of these cycles. High unemployment means many people ‘losing their jobs’ and thereby losing their income. It is one extreme effect of recession and is quite capable of upsetting our lives. There by it is important that we know if we are hit by recession? And most importantly what can we do to safeguard ourselves against it?

Here are some indicators of recession and suggestions to prepare for the battle against being hit by the recession.

1. When your company stops hiring:

When HR says ‘Let’s put them on hold’ for the resumes you were planning to hire…it means they know something you still don’t know! It may mean Recession is here and your company is facing dwindling revenue and falling profits. Therefore it is not interested in expansion at the moment so you must brace up yourself for lesser than expected bonus and salary raise.

For the individuals whose house run on the salary they bring home, bonus is very coveted. Bonus is often used to plan some big annual/one time expenditure like vacations, down payment for a house purchase, prepayment of loans, marriage, college fees. Getting less than expected bonus may disrupt our entire planning. To avoid such situation, focus on Goal based Regular Savings!

If your goal is near, do not depend fully upon ‘mere expectations’ of getting good bonus! Rather liquidate and consolidate your prior investments and keep the cash ready.

2. When you see lesser footfall in malls and restaurants:

Lately you see No waiting lines to get the seats in your favorite restaurant and the amazing dress you saw last week in sale is still there…are you wondering where are all the people gone? The reason may not be the sudden reluctance to entertain themselves or buy new things but the reluctance to ‘part with the money’ in the Recession hit economy.

Before you are also forced to cut down your expenditure haphazardly it is better to categorize your discretionary and non discretionary expenses. ‘Prepare a budget’ and ask everyone in the family (including kids) to suggest cost cutting measures. It will keep everyone ready for hard time called recession.

3. When your boss become unreasonably demanding:

If your boss is suddenly asking you to take up more responsibilities without hinting any promotion or salary raise then it may be the time to become alert! It may mean that company is planning to squeeze more work out of lesser number of employees ie possibility of job cuts.

Even though you are not given the pink slip yet…it will be wise to prepare yourself for any such situation. It is advisable to ‘Create an emergency fund, buy more medical insurance besides the one from your company, get income protection insurance and also home loan insurance’. If you have any loan, you can increase the tenure and keep EMIs to the minimum; this will put lesser burden on your current finances. Also start looking for back-up job options or explore alternative career options before even before it becomes absolutely necessary.

4. When your investments give you negative surprises:

If you were planning to liquidate your investments and were surprised to find out that you cannot even get back what you have invested, Do not panic! Like others you may have hit by looming Recession among other reasons. One big challenge of a recessionary economy is the ‘fewer buyers’ in the market. And everyone wants to run away selling whatever is left of their investments. Hence you may be offered less money for your investments than expected.

The fear of losing money is ‘real’ at such a time provided you ‘really’ need to sell/ liquidate your investments. According to IMF (International Monetary Fund), "Global recessions seem to occur over a cycle lasting between eight and 10 years." And if you look at the data for last 50 years it is visible that at the maximum any Recessionary period has lasted for NOT more than 18-20 months, ie. Not even 2 years.

As an individual you need to understand these economic cycles before taking any hasty decision, particularly if you have NO immediate need of money and were originally planning to stay invested for 5-10 years. Hence ‘It is important to evaluate if you really need to liquidate your investments’? In case you are doing it because everyone else is doing it then it may be the time to recheck the fundamentals on which you initially invested your money. If there is no real need then perhaps you can bear this notional loss since almost always the economy goes back into the recovery mode.

Also while investing, instead of ‘waiting to get the best returns’ on your investment, you should pre-decide on how much money you need for your goals. This will help you calculate returns you should get from your investments. It is advisable to keep consolidating your investments whenever you reach the desired amount. Rest is the Bonus!!

Finally:

The needs and aspirations of your family are defined, derived and fulfilled by not only what do you earn but also by how much do you save and how do you spend it. You may love to plan about how to “earn’ more money but it is equally desirable to plan about ‘how to nurture and use this money’. And in recent times it also depends on ‘how you keep your home recession proof’!

5 Questions About PPF

The Public Provident Fund, or PPF, is predominantly a tax-saving instrument but wins on numerous aspects. While it has a definite lure for the risk-averse investor, it is a smart retirement vehicle that makes it a good consideration for any individual.

Here are 5 questions that are often asked of this instrument.

1)      Is the return assured?

The return is most certainly assured but flexible, not fixed. The account holder is promised a return every year, though the exact figure fluctuates annually and is decided by the Reserve Bank of India. Initially it was fixed and was as high as 12% per annum. Over the years it got lowered to 8% and crept up a bit again. The returns are reset every fiscal year and are benchmarked against the 10-year government bond yield. From April 1, 2012, the rate was 8.8% per annum but got lowered to 8.7% per annum from April 1, 2013. This year the interest rate was left unchanged.

2)     How often is it compounded?

The interest on the PPF account is compounded annually, as against the National Savings Certificate where it is compounded half yearly.

Though the interest is compounded annually, the calculation is done every month. It is based on the lowest balance in the account between the end of the 5^th and last day of the month. While the calculation is done every month, the money is credited to the account only at the end of the year.

If you are doing a lump sum investment into your PPF account, do it before April 5. That way you get the most benefit because your deposit will earn interest every single month. If you are investing in installments all through the year, it really does not make a significantly huge difference if you deposit the amount before or after the fifth day of the month. However, over the tenure of 15 years it would add up. So attempt to make the deposit before the 5^th of the month. If you deposit it later, you will miss the interest you could have earned that month.

3)     Who can open an account?

Only resident Indians are permitted to open a PPF account. Non-resident Indians are not eligible to open an account. However, a resident who becomes an NRI during the account’s tenure can continue prescribing to the PPF account though the money in this account is maintained strictly on a non-repatriation basis.

Only one account is permissible per individual. However, a guardian or parent can open an account for himself/herself as well as one for a minor.

Importantly, a PPF account cannot be held jointly though nominations are permissible. In fact, it is wise to do so. The nomination can be cancelled or updated by filing a fresh request.

4)     What is the tax break?

This is the only exempt-exempt-exempt, or EEE, scheme available in India. This indicates that it is exempt from tax all the way. When you deposit money in the account, you get a tax exemption under Section 80C. The interest earned is also tax free. On maturity, the lump sum (interest earned + principal invested) is not taxable.

The limit in a financial year is Rs 1 lakh under Section 80C. This is the limit whether you invest in your account and in any other PPF account where you are the guardian. The PPF limit is Rs 1 lakh for an individual, not per account basis.

5)     Is it risky?

There is no chance of someone running away with your money. Or later on being told that there is no way your money can be returned to you. The PPF is a sovereign-backed instrument which means it is backed by the government. This is the highest security an investment can have and, therefore, the safest.

Moreover, investments in a PPF account cannot be attached under any court order with respect to any debt or liability of the account holder.

how to calculate your networth thanks circle wealth advisors

Net worth is the amount by which assets exceed liabilities. It can be used to determine the financial worth of an individual or a business. Simply put, it means if you were put on sale, how much you would be worth in rupee terms. Finding out your Net worth is the first step to your future financial goals’ journey. Before you can reach a financial goal, you need to know where you currently stand.

Net worth is not only that starting step that directs you to set a financial plan to reach your goals, but helps you to protect your assets via insurance coverage by determining the worth of your assets.

How to calculate your net worth -

Formula: Net Worth = Total of all your assets – Total of all your liabilities

·         List down all your assets. This should include bank balances, bonds, Equity investments, MF investments, property, PPF/EPF etc. Make a conservative estimate of the assets’ value.

·         List down your liabilities. This includes all balance left in all loans like Home loans, credit card loans, personal loans, outstanding premiums etc.

·         Find the difference. The difference is your net worth. At the start of your career you might have a negative net worth due to education loans or any other outstanding loan. This is normal, but take steps to ensure that you aim towards reaching a positive net worth.

 Net Worth – Thumb Rule

There is also a thumb rule for how much should your minimum net worth be

Thumb rule: Ideal Net Worth = (Your Age x Gross Annual Income from all sources except inheritances)/10*;

            Example: If you're 30 and earn Rs 10 lakhs a year, ideally you should have a net worth equal to or more than Rs 30 lakhs.

Why is net worth important?

Net worth is a snapshot of everything you own and everything you owe. It is important to know your net worth as you are aware of your financial health. Net worth should be calculated at least once a year so that you know the trend your finances are following.

How to increase your net worth?

 

·         Reduce your Debts – You should pay off your debts as and when you can and avoid taking loans for consumption and personal loans.

·         Make smart investments – Asset allocation is very important. It is not a smart idea to leave your money lying idle in the bank. Invest in a variety of assets like Equity Funds, Debt etc. so that your asset size grows.

·         Reduce Expenses and Increase Savings – Keep a check on your expenses. You can list your daily expenses in various apps to start with.  

*Source - The Millionaire next door

Dear All,

Does a housing investment always gives a great return, do read below an article that came in Business Standard recently. Do share with your investors who ardently believe that Real Estate will always give great returns:

Does a housing investment pay at all?

You may not believe it but data show average real appreciation in residential property in urban India over 2007-14 was zero

It is widely believed that urban residential property in India is an excellent asset for large returns. But, is this borne out by data? Not really.

The NHB Residex (an index constructed by National Housing Bank based on "actual transaction prices") covers 26 cities all over India. The index stood at 100 in 2007 for each city. For January-March 2014, the all-India index was 178.69 (arrived at by taking a simple average of the index levels for the 26 cities). An increase from the base value of 100 in 2007 (on, say, 30-6-2007) to the recent value of 178.69 (on, say, 31-3-2014) translates to an average appreciation rate of 8.97 per cent annually.

This by itself is lower than the appreciation rates most people have in mind when they think of appreciation in the price of residential property in urban India. So, the public beliefs are not correct. However, there is even more to the story. There has been an average annual inflation rate of about 9.25 per cent since 2007-08 (this is based on the data used for computing real capital gains for income tax purposes). Inflation eats into whatever returns there are.

An 8.97 per cent nominal appreciation alongside a 9.25 per cent inflation rate implies the real appreciation rate over the period 2007-14 is a negative 0.28 per cent annually. Let us simplify and say the real appreciation has been zero. This is the basic story according to NHB data. This contradicts widely held beliefs in India.

A weighted average across 26 cities instead of a simple average can increase the computed appreciation rate but not enough to change the basic story.

There are considerable regional variations. Chennai has witnessed real appreciation of about 11 per cent annually, whereas Kochi has seen real depreciation at an average rate of about 11.5 per cent every year since 2007! Delhi and Mumbai have seen average real appreciation of 1.47 per cent and 3.8 per cent, respectively.

The NHB data is consistent with a recent International Monetary Fund report. It showed an international comparison of real appreciation in real estate in 52 countries for 2013, fourth quarter or latest (annual per cent change). There are 18 countries which had witnessed depreciation in real terms. And, guess what? India showed the maximum depreciation in real terms, at about eight per cent! (http://www.imf.org/external/research/housing/index.htm).

The NHB data shows there has been hardly any real appreciation in urban residential property in India in the past seven years or so. We do not know anything about real appreciation in the earlier years from NHB data. Then, real appreciation might have been high. This can explain why people historically believe residential property is a good asset for investment purposes. This can also explain why absolute prices, as distinct from appreciation rates in prices, are high at present in parts of India.

Further, NHB data covers change in the price of residential property and not a change in price of land. It appears that appreciation in the latter case is more but, again, nothing definite can be said on the basis of published NHB data.

Finally, the average appreciation can be higher for new projects than in the case of property in older developments. It is the newer projects which are more in the news and so, there is a perception of more appreciation than there really is.

Financial savings of households dropped from 11.6 per cent of gross domestic product in 2007-08 to a poor eight per cent in 2011-12 (chart 1.11 in the Financial Stability Report of the Reserve Bank, June, 2013). This has been an important reason for the economic slowdown in India. One important reason for the large non-financial savings is a considerable investment in real estate. This is, in turn, due to expectations of high appreciation. Now, it turns out that this expectation is somewhat different from the reality in the past seven years. There is need for greater awareness, so that investors (and their financiers) are not disappointed later.

Low real appreciation is not good news for investors but it can be great news for new actual users, who are much more in numbers. Over time, housing can become more and more affordable if the recent trend continues. This can gradually obviate the need for the government to provide a stimulus for the sector in one form or another. There will also be less need for special schemes to provide affordable housing. Good, as such schemes come at a high cost to the public exchequer and usually involve red tape and corruption. The size of the market can anyway expand if prices are low. There can be a higher growth rate in real estate development, construction, employment and possibly even revenue for the government.

Real estate prices have a white money and black money component. It may be argued that official data pay attention to the former and this results in underestimation. This is right insofar as absolute prices are concerned but not quite valid where appreciation is concerned. Since it is the appreciation which is the focus here, the NHB data on changes in the index may be used.

http://www.business-standard.com/article/pf/does-a-housing-investment-pay-at-all-114072901342_1.html#.U9hbP8Tjy2I.facebook

regards

Dear All,

Please find below a good article as published in Advisorkhoj for your reading:

What are the market benchmark indices of various mutual funds

Jul 31, 2014 by Dwaipayan Bose

How do you know if your mutual funds are performing well? We have investment objectives in our financial plans. Implicit in our plan are expectations on investment returns. Your equity fund may have given 25% return in the last one year, which by itself seems like a good return. But has your fund performed well? The answer is no, because in the last one year Nifty has given return of over 35%. To evaluate the performance of mutual funds, we need to compare the returns with benchmark indices. There are three kinds of benchmark indices for the evaluation of the performance of mutual funds:-

• Market benchmark indices (e.g. Nifty, Sensex, CNX 500, CNX Midcap etc)


• Category average returns


• Special benchmark indices constructed by mutual fund rating firms (e.g. CRISIL AMFI benchmark index)

You should look at both market benchmark indices and category average returns when evaluating the performance of your mutual fund. Your mutual fund return may beat the market benchmark index but may still be lower than category average, which means that you have better investment options. On the other hand your mutual return may beat category average, but still be lower than the market benchmark. There may be funds in the same category, which have beaten the market benchmark and therefore present better investment opportunity for you. In addition to comparing the performance of your fund with the market benchmark and the category, you should also look at special benchmark indices constructed by the mutual fund rating firms, if possible. In this article, we will focus only the market benchmark indices of various mutual fund categories.

Large Cap Funds

The benchmark indices of large cap funds are CNX Nifty and BSE Sensex. The fund itself may have a different benchmark in its scheme information document, but you should consider using Nifty or Sensex as the single benchmark index for all your funds in this category. Nifty is a better benchmark index than the Sensex because the Nifty basket of stocks is bigger than that of the Sensex. If the portfolio has significant holding in stocks which are not in the Nifty or Sensex basket (e.g. Top 100 or Top 200 funds) then you can use the BSE 100 as a benchmark index. The chart below shows the 1 year, 2 years and 3 years returns of Nifty and Sensex.

Diversified Equity Funds

Diversified equity funds comprise of both large cap and midcap stocks, and stocks across various sectors. How will you know, if your fund is a diversified equity fund? Unfortunately it is not easy to know because virtually every equity fund, whether it is essentially a large cap fund or small and midcap or a multi-cap fund, describes itself as a diversified equity scheme. Also, the mutual fund category definitions and nomenclatures are not consistent across different mutual fund research firms. You can use the CRISIL category definitions or the definitions of any research firm, but make sure you understand the category definition, whatever the nomenclature is. For diversified equity funds as defined by CRISIL (some research firms also call it multi cap funds), we should use a CNX 500 or the S&P BSE 500 index as the market benchmark index. The chart below shows the 1 year, 2 years and 3 years returns of CNX 500 and BSE 500 index.

Small and Midcap Funds

The market benchmark index for small and midcap funds is the CNX Midcap Index or the S&P BSE Midcap index. The chart below shows the 1 year, 2 years and 3 years returns of CNX Midcap and BSE Midcap index.

Equity Linked Savings Schemes (ELSS)

Equity linked savings schemes are tax saving mutual funds. Apart from the tax saving eligibility underSection 80C of the Income Tax, ELSS funds are essentially diversified equity funds with a lock in period of 3 years. Like diversified equity funds, the market benchmark index of ELSS funds, should be the CNX 500 or the S&P BSE 500 index.

Liquid Funds and Ultra Short Term Debt Funds

The benchmark for liquid and ultra short term debt funds is the savings bank interest rate. For the last few years the savings bank interest rate has been around 4%.

Fixed Maturity Plans and Debt Funds

The benchmark returns for Fixed Maturity Plans (FMPs) and Debt Funds are the 1 year, 2 years and 3 years Bank Fixed Deposit interest rates. You can either use the interest rates that you are getting on your own fixed deposits or you can get fixed deposit rates for various maturities on the bank websites. The table below shows the FD interest rates offered by ICICI Bank for different maturities (over 1 year).

Balanced Funds and Monthly Income Plans

Balanced Funds and Monthly Income Plans (MIPs) are hybrid debt and equity schemes. You can construct a hybrid benchmark using CNX 500 for the equity portion and Bank FD interest rate for the debt portion. You should weight the benchmark return using the asset allocation (equity and debt) percentages of your hybrid fund, to calculate the weighted average benchmark return.

Arbitrage Funds

Arbitrage funds are, by definition, risk free investments. Since these funds are used for short term risk free investments, you should use the savings bank interest rate as the benchmark. Investors should note that the returns of arbitrage funds are contingent on arbitrage opportunities in the stock market. Arbitrage opportunities increase when the market volatility is higher and decrease when the volatility is lower. Therefore arbitrage fund investors should also track the volatility or VIX index.

Conclusion

In this article, we have discussed the market benchmark indices for various categories of mutual funds. You should always compare the performance of your funds with the benchmark indices. A good fund manager should be able to beat the benchmark indices on a consistent basis.

( Mutual Fund investments are subject to market risks, read all scheme related documents carefully.)

Dear All,

Please find below a good article as appeared in Morning Star for your reading:

A contrarian view on diversification

Diversification is often treated as an unalloyed good. It's not. The more I learn, the more I appreciate that Warren Buffett said something as perfect as can be about the subject: "Diversification is protection against ignorance."

Diversification is a volatility-control strategy that requires little knowledge on your part. As long as 1) two assets aren't perfectly correlated and 2) the expected return on one of the assets isn't too low, it follows as a matter of math that owning a combination of the two can be expected – not guaranteed – to provide a better volatility-adjusted pay-off than owning only one.

If you know little, diversification is a no-brainer. In fact, you want to diversify as much as possible. Moreover, you want to do it as cheaply as possible, as the benefits of diversification don't require expertise. There is a trade-off. If you know something – say, you can actually identify undervalued stocks – then at some point diversification hurts you by diluting your edge. An extreme example would be someone privy to news that's certain to send a stock's price rocketing. It would be crazy for him not to put a huge chunk of his wealth into the stock, assuming he's not breaking the law. The more you know, the more diversification hurts you.

Most investors understand that they should diversify a lot. However, some hurt themselves by behaving inconsistently: They diversify a lot while implicitly behaving as if they know a lot. A big subset of this group is investors who own lots of different expensive funds. Owning one expensive fund is a high-confidence bet on the manager. Well-done studies estimate that the percentage of truly skilled mutual fund managers is in the low single digits.

It would be strange if your process for assessing managers turns up lots and lots of skilled ones, because there aren't many in the first place. If you see skilled managers everywhere, chances are your process is broken or not discriminating enough. It would be even stranger if you bet on many of them. Doing so dooms you to getting index-fund-like results while paying hefty fees. It makes little sense to pay 1% or more of assets on an aggregate portfolio with hundreds of positions and market-like behaviour.

An exception is if you assemble a portfolio of extremely concentrated fund managers. Owning 10 funds with 10 stocks each put together will look like a moderately concentrated fund manager. This is a model some successful endowments, hedge funds, and mutual funds use.

Most investors should own diversified, low-cost funds. Those who believe they know something should concentrate to the extent that they're confident in their own abilities. A big danger is that humans are overconfident; many will concentrate when they should be diversified.

A young investor with lots of room to make mistakes and a passion for investing should consider forming a portfolio of "play money" with a handful of his best ideas. Over time, he can learn whether he knows what he's doing and either size up or down his bets. An advantage of a concentrated "skill" portfolio is it becomes quickly apparent if an investor knows what he's doing. This can prevent a lot of heartache down the road. An older investor near or in retirement just beginning to learn about investing cannot take the risk of self-exploration. He should stick to low-cost, highly diversified funds.

This article initially appeared on Morningstar UK and has been authored by Samuel Lee, a strategist on the passive funds research team. 

http://www.morningstar.in/posts/26871/a-contrarian-view-on-diversification.aspx?utm_campaign=bulletin&utm_medium=email&utm_source=morningstar