A lot of us think mutual fund managers always know the best stocks to buy, after all, they study the market every day, right? But what if their “favourite” stocks don’t always perform better than the market?
Between 2015 and 2024, top fund managers in India picked their go-to stocks, hoping for high returns. Some of those picks really worked, but others didn’t do as well as expected, many even underperformed compared to the overall market (like the BSE 500 TRI).
So now investors are asking: should we still trust mutual fund managers’ stock picks, or is it smarter to invest in index funds or regular diversified mutual funds instead?
Honestly, it’s a mixed bag. Mutual fund managers do have solid research teams and access to insider-level insights but that doesn’t always guarantee better returns.
Reports says when they looked at the top mutual fund managers’ “favourite stocks” from 2015 to 2024, the results weren’t as magical as most people expect. Some portfolios delivered great long-term returns, especially those holding consistent compounders like HDFC Bank, Infosys, and ICICI Bank but a large number of their picks failed to outperform the BSE 500 TRI benchmark.
The main reason? Even fund managers can’t predict market cycles, global shocks, or how investor sentiment will shift. Many times, the “favourite” stocks got overbought and then underperformed once the hype faded.
So, if you’re an investor, the takeaway is simple:
Don’t blindly copy mutual fund managers’ stock picks.
Use them as a learning reference, not a guaranteed profit signal.
Focus on consistent SIPs in diversified mutual funds or index funds they usually give steadier returns with lower risk.
At the end of the day, even fund managers are humans playing the same game just with more data. So, instead of chasing their picks, it’s smarter to build your own disciplined strategy and stay invested for the long term.
