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The Path to Profit. A section where Ajit Dayal writes about his daily experiences as he travels the length and breadth of South India, meeting existing and new investors and facing their questions. Read the latest on the Path to Profit below.

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  •   Breaking rules.
    Comments(0)

     Posted by Ajit Dayal on Thursday, September 17, 2009

    So we have just left Coimbatore and are back on the road - this time to Kodaikanal.

    Raju has had a good night’s sleep after his 27 hairpin bends and is now ready to make the172 kilometre journey.

    As we leave the city for the highway we come across a red light.

    Raju stops.

    The cars behind him begin chanting their horns.

    Raju goes through the red light.

    I don’t like it. “Please don’t go through red lights”, I say sternly.

    “But woh horn bajara tha”, says the smiling Raju

     

    Raju is driving the Quantum Path to Profit car – we stand for process, for discipline,for following rules.

    I explain that to Raju.

    He probably thinks the antibiotics have eaten my brains.

     

    But the research and portfolio team know better.

    Sure we will honk as we go down 27 hairpin bends – we will warn you of the dangers of investing in stock markets.

    But no breaking any of our research and investment disciplines as we build your portfolio.

    Raju has along way to go if he ever wishes to be a research analyst or portfolio manager at Quantum.

     

    To be fair, Raju probably thinks I have no hope of qualifying to drive.

     

    But as long as it is a Quantum car – or a Quantum mutual fund – processes, discipline, the rule of law and fairness will prevail.

    That is a promise from all of us.

     

    Eh, I am still working on Raju to sign that pledge. J

9 Responses to
  • Rajesh
    Updated on
    Sep 24, 2009
      I know that you will just ignore this message. But I would still like to try. I went to moneycontrol.com and listed the equity oriented mutual funds in the order of performance based on the last 3 years. I see that Quantum fund doesn't even figure in the top 20. If somebody's investment horizon is 3 years, what use is investing in Quantum fund, if doesn't stand even in  top 20. At the end of the day people invest to make best possible returns. Can you explain why you are not in the top 20? Also all your stock select, midcap select etc are just making money only to you and not for the subscribers. Is there any period in which there were no recommendations because the  markets have run up heavily and hence no investment opportunities exist. Every week you send some recommendations since a subscriber has paid money to receive them. I doubt if you will ever answer these questions
  • dsylexic
    Updated on
    Sep 24, 2009
      say what, arentcha trying to copy Bill's (bonner) style over here... not bad though.its a style that should be copied.it would be nice if you can dump on amartya sen or whoever is our pop guru in india,like bonner unloads on tom friedman
  • SD
    Updated on
    Sep 25, 2009
      hi ajit,  hope ur having fun on ur path to profit.......I have been following you since the old morgan stanley days...thru the media  then ofcourse equitymaster / personalfn and all....few comments with due respect...

    overall i must say ur intentions are honest.....but....but...

    1. performance of funds absolutely pathetic and i dont want to know abt the model which is scalable and alll......good for 5000 .....overall capability of your fund managers is quite suspect.....I have been a PMS investor with some really good value guys ( who arent swayed by mkt) and they have given amazing returns...the whole cycle of 2005 onwards....your funds of quantum arent some performers....average to the most....I may as well put money in a relaince fund which on all short-long-medium term plus size has performed.

    2. even in personal fn , see your own ads which depict gain so much % in so many months...and induce subscribers.....where's the ethics in that

    3.  overall I feel too much Bhashan is doled out....though it is my choice whether to read or not, I thought you would like a honest feedback. Your efforts in mumbai alone could fetch you good amounts in PMS. Why the compulsion to be in the public space?....Overall investor education and awareness is good to hear but objectives unclear.
  • upendrah
    Updated on
    Sep 26, 2009
      interesting to read.
  • Chandra
    Updated on
    Sep 29, 2009
      This is for Mr Rajesh.

    Firstly,I am neither an insider at Equitymaster or in anyway related to QMF.

    It is just that I happen to read almost all of Mr Ajit's blogs and read the many interesting comments posted by people like you.

    I think Ajit has mentioned his investment approach many times in his blogs and there is every reason to believe that it is being followed.

    To answer this particular question of yours,  I suggest you read all of "The Honest Truth" blogs starting from May of this year. Let me say that there have been lots of bloggers like you questioning on the returns front and I think Ajit has some answers. I am not sure if they answer you but take a look.

    I say this because I am tired of people being either critical of the returns or simply praise for the practices followed.

    I think the discussion needs to move to something more mature on mutual funds and the recent blog on capacity is an example of the same.

    BTW, the fund is the top20 if you consider the period from start of fund creation.


  • Rajesh
    Updated on
    Oct 05, 2009
      Hi Chandra,
    It is because of people like you that people preach and do not follow.
    I have stated my goal very clearly. In 3 years time I want the best possible returns. Does Quantum fund still qualify by being in top 20?
    If your mutual fund is not in the Top 5, I think you don't need to invest  in that mutual fund. 
    Also did you notice the difference in returns % between the 1st and  the 20th fund. It is half! 
    Try to open your eyes and see.
    What about equitymaster's stock select and midcap select? Do you know whom they are making money?Again it is equitymaster and not you or me. Look at my previous post's question. Is there a period, say 3 months, when they didn't recommend anything because of lack of opportunities?
    Don't get carried away blindly. Look at the things and separate out facts from stories.

    Regards
    Rajesh

  • Nikhil
    Updated on
    Oct 11, 2009
      Hi All,

    Absolutely agree with rajesh here.
    Perhaps all said and done, Mr. Ajit Dayal would do well to answer some of the queries raised for the benefit of all the followers.
    Lets make it a healthy discussion.
  • Johnzz
    Updated on
    Apr 01, 2010
      Hey Just a quick hello from as I'm new to the board. I've seen some interesting posts so far. To be honest I'm new to forums in general :)
  • Mikeharvey
    Updated on
    May 18, 2010
      Hi, from Toronto, CanadaJust a quick hello from as I'm new to the board. I've seen some interesting comments so far.To be honest I'm new to forums and computers in general :)Mike

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