Another alleged sin is being massively overweight in technology. When the sector was performing, the overweight position did not attract complaints, as the investor was getting high returns. Today nearly all funds have realigned their weightages with the sector s current performance. If technology is still the future and if technology companies grow at a faster rate than the market as a whole, it is natural that they will command a larger part of the fund s portfolio. Change, if it is needed, is in the quality of distributorship and the accuracy of stated investment objectives.
Funds are still one of the most egalitarian and democratic of financial tools.
Mutual funds have not failed in any country where they work within a regulatory framework. Their future is bright.