As an investor, it helps to select funds that have Skin In the Game, i.e. they have a personal stake in the performance of their fund.
Fund managers who invest in the funds they manage bear the same tax and cost consequences as their investors. This results in a better conviction and also studies show that the fund delivers a better performance.
This is the next best thing after ensuring you don’t fall in the trap of NOT investing in direct plans of the chosen funds. Avoid regular plans if you wish to keep upto 40% or more of your corpus.
As far as i know, this information is available in the media mostly through disclosures of the fund managers. The mutual fund’s SID or Scheme Information Document is also supposed to disclose this if fund managers are investing in it.
There are many fund managers who are various times have disclosed their interest. Some of them are (list is dynamic, not complete and may change):
- Quantum AMC (about 5% holding today)
- Parag Parikh Mutual Fund (PPFAS) (about 10% holding)
- Prashant Jain of HDFC AMC
- S Naren of ICICI Prudential AMC
- Franklin Templeton
- Kotak AMC (has asked its employees to invest in own fund)
