Mutual Fund polymorphism

Multi-utility products drive you crazy

In the world full of duplicates and look-a-alike we tend to get visibly confused by the choices. Some of the large companies produce different products in different brand names. These brands were created to garner attention and business. The world’s luxury brands of car or perfumes have such tell-tale stories to showcase it. If you know that the Lexus is the luxury brand of Toyota then you will understand it better. Again the German carmaker Volkswagen group makes your Audi, Skoda, Porsche, Bugatti, Lamborghini, and VW Polo cars. If this is not enough they make the all famous Ducati bikes and the extremely successful commercial vehicle brand MAN and Scania. Brand-morphism isn’t it?

Mobile Mania

In the mobile stores, you will find the ever enchanting VIVO, OPPO and One plus all coming from the same smartphone company BBK electronics, the makers of Blu-ray players and speakers. Again a Brand-morphism at its best

So polymorphism is not just about Java, C++ or python but connected to a host of things in life that will take different forms. So we see polymorphism in the car and phone brand and why not in Mutual funds?

Mutual Fund avatar

There are different avatars by which mutual funds appear in front of you. Each of them takes the shape of the value characteristics that it builds into your portfolio. One calls it Tax savings, while others call it a large cap. One calls it savings fund while the erstwhile name is Monthly Income. You have a liquid fund and a money market fund with a dissecting difference. So when you can accept many brands of the same car manufacturer should we not embrace different schemes of the same fund house?

Value drivers are more important

Ultimately it’s people choice. However when in doubt reach out to your advisors as much as the auto consultant will guide you which care to drive.  All cars will take you to home, office, pubs, restaurant irrespective of its brand and fuel you pump in.

The Transporters

Choose the right vehicle (Investment) to run the right distance. You don’t take an auto to go from Delhi to Jaipur or from Dadar to FC Road in Pune. For a similar reason, you may pick a cab or bike to travel a distance of 10-20 KM than asking for a copter ride.

Mutual Fund choices are subject to subjective risk

So chose your car wisely by its merit and fuel it with pride to cherish it. Mutual funds too offer humungous choices to pick. So do your risk profile and match the schemes to your investment horizon. If you get your asset allocation right then you can be on auto-pilot mode for rest of your life

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