In my initial days as a lay investor, when mutual funds were gaining in popularity, I had decided to invest in three mutual fund schemes. The total investment was about Rs 2.0 Lakhs. Those were the last and only investments I made in mutual funds. Soon after, I have chosen to invest in direct equity by doing rigorous research, back testing and building optimal portfolios with cutting edge mathematical modelling frameworks.
One main reason I chose to shift to mutual funds was the issue of "value and integrity conflict" in the way mutual funds invested my money. When I was looking through the portfolios holdings of the schemes, I noticed stocks of certain businesses which were considered "socially not responsible" (a polite word for businesses that prospered from unhealthy products and services such as cigarettes, liquor, gutka etc). As an individual I'm a tee-totaller and non-smoker. Watching my money deployed in these businesses was simply unacceptable, as it directly conflicted with my personal value system as an investor.
This accelerated my shift to direct equity where one has complete control of the sectors and firms to invest and avoid potential conflict to one's deeply held personal values.
You have a choice to address this dilemma, by considering direct equity investing (or) get real selective about funds that can assure you they make "socially responsible" investing decisions in their portfolio.
When stocks are professionally identified and a portfolio is built that also aligns with your personal and family values and life needs with the help of a professional investment adviser, one can expect to achieve value driven wealth creation.
To consider building "Value driven Wealth", welcome to get in touch