Although even if there is an overlap, even if the funds are managed by the same manager, the reason for investing in same stocks could be different.
If we take the example of ITC, a fund based on a system will only buy it after it has started moving or looks like it will move, on the other hand, a fund based on pure fundamentals may have got chosen for the business and not for the price alone, so the system fund may exit after the up move is over and is consolidating, and the fundamentals fund may remain invested for longer periods.
And if all of this is explained in the funds’ documents, then investors will have the clarity.
Here is an explanation of such a system.
| Subscribe To Our Free Newsletter |
