Stories
FundsIndia CEO: Investors Must Shift from 'Which Fund?' to 'What Portfolio?'
- •Akshay Sapru, Group CEO of FundsIndia, highlights that Indian investors often confuse the number of schemes they hold with genuine diversification, urging them to view their portfolio holistically.
- •The rise in holding periods over five years is attributed to investors experiencing market cycles, the default SIP habit, and advisor nudging against performance-chasing.
- •While awareness of basic investment concepts has improved, investors are often more reactive on timing due to the volume of content, failing to connect knowledge to specific goals or risk profiles.
- •Investors tend to chase funds, sectors, or asset classes that have recently performed well, driven by visibility, the assumption of trend continuation, and social proof.
- •Genuine diversification involves spreading investments across styles, asset classes, and risk factors, not just holding many funds, as accumulation is often driven by FOMO rather than a strategic plan.
Key Questions Answered
Many investors accumulate multiple schemes driven by FOMO or recent performance, often keeping funds in the exact same category. Because these funds hold many of the same underlying stocks, an investor can hold ten different folios while remaining heavily concentrated in practice.
Recent performance is the most visible and easily comparable metric, whereas evaluating underlying risk and process is much more difficult. Additionally, human tendency assumes recent trends will continue, which is amplified by social proof, media coverage, and seeing others make money.
Among engaged investors seeking expert guidance, a visible shift toward goals and overall structure is occurring. However, for the majority of the population, trailing returns and asking 'which fund' remain the dominant lens, making goal-based investing an early-stage shift.
