SIFs should be satellite holdings, not the core of portfolios: Morningstar CEO Kunal Kapoor
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Morningstar CEO Kunal Kapoor said specialised investment funds should be small satellite holdings, not the core of a portfolio.
- ✓He warned that these funds bring extra costs and complexity.
- ✓Kapoor advised investors to prioritise simplicity and diversification, noting that recent returns often lead people to chase performance in volatile categories.
Story at a Glance
- Category
- BUSINESS
- Reported By
- The Economic Times
- Reading Speed
- 6 Minute(s)
- Market Focus
- India Economy
Specialised investment funds (SIFs) should usually be treated as small satellite holdings rather than the core of an investor’s portfolio, Morningstar CEO Kunal Kapoor said, cautioning that the flexibility offered by long-short strategies, derivatives and active asset allocation also brings greater complexity, costs and a wider range of outcomes.
With most SIFs only months old, early performance data offers limited insight into their long-term potential, Kapoor said. While the new category could expand India’s managed-investment market and intensify competition, investors should prioritise simplicity, diversification and cost discipline.
Edited excerpts from a chat:
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The Economic Times
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