Thursday, January 17, 2008

Performance by default

Sunil Jain in BS –
“Though the country’s tax collections are rising by leaps and bounds, a recent paper in the Economic & Political Weekly suggests this may have more to do with the growth in the economy than with the efficiency of tax administration.”
He quotes some statistics to buttress his pov.

I can’t agree more. I would even draw a parallel. Haven’t you noticed the same thing with performance of our fund managers in Mutual Funds? Don’t they do the same thing? When markets are near their peaks, all of them brag their chests. NAVs of their various funds are high by default than by design – reducing them to just being punters. But then that’s what you and I do. Why pay commissions and entry/exit loads to these pumpkins?

No comments: