Strange it may sound, but in spite of all the hulla gulla, jazzy marketing, more than half of the mutual funds perform far worse than how the BSE performs. And whats worse is that its almost impossible to find out which fund is good and which one is not. If you give me a stock, I can find out whether it is undervalued/overvalued etc. but these analysis does not seem to work for mutual funds… for almost all of them are traded at the NAV (net assets value). (except some wonderful closed ended funds like Morgan Stanley Growth fund which is now trading at a discount of 10% from the NAV)
I think its high time that these mutual funds should stop concentrating on collecting funds, creating new funds and jazzy advertisements and start concentrating on creating wealth… because end of the day this is what matters.