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Star Manager | Portfolio Yoga

Portfolio Yoga

Building Wealth | Building Relationships

Tagged: Star Manager

Selection Bias in Mutual Fund 0

Commentary / Mutual Fund

Selection Bias in Mutual Fund

When we are told that Mutual Funds beat Benchmark & hence generate Alpha, we are given the list of funds that have achieved that landmark. What we aren’t shown is the list of funds that have under-performed (who wants to highlight losers anyway) as also how 2 similar funds managed by a single fund house can have returns that are...