Couple of days ago the news break out in the Indian Mutual fund industry that L&T takes over the Fidelity mutual fund. 
How the market will react , I do not have any clue over it . Has the consolidation phase begun in the MF in India , another surprising factor is the ( Asset under management) Aum that L&T Mutual fund has is Rs. 4700 crores. The Aum of Fidelity is Rs. 2300 crs in debt and Rs. 5600 crs in equity. Will be writing more on this space because fidelity was more favorite for the retail investors over L&T..
In between recalled some of the styles of the fund managers had their own papal fashions which is called as investment styles,
- Style : Index Fund
- Meaning : The fund manager invests to match some index like S&P 500
- Reference : The fund manager has give up trying to beat the market.
- Style : Active Management
- Meaning : The Fund manager picks up stock that willdo better than the market
- Reference : The triumph of hope over experience. You the investor are paying for the experiment.
- Style : Momentum investing:
- Meaning : The Fund manager chases what ever is going up
- Reference : The lemming or crowd theory of investing; the investment equivalent of a finish proverb: ‘shit must be good, millions of files can’t be wrong’.
- Style: Value investing
- Meaning: The fund manager invests in under valued gems that he has uncovered through research.
- Reference : Pure luck or you hope that fund manager has inside information.
- Style : Yield enhancement
- Meaning: The fund manager invests to generate above market income
- Reference : You are talking on a whole lot of risk. You will be lucky to get your money back intact.
- Style: Portfolio insurance
- Meaning: The fund manager guarantee that your investments at least 90% of it is safe
- Reference: Hang on wasn’t the return of Principal the least that you are entitled to?
- Style: Structured investment
- Meaning: The fund manager will specifically design to fit your exact risk and return parameters using sophisticated investment tools and financial products.
- Reference: A pure con job to charge you more fees
- Style: Alternative investment
- Meaning: The fund manager will invest in hitherto unknown assets weather derivatives catastrophe bond art stamp etc
- Reference : You are at an investment pioneer good luck !
