Have you ever been disappointed when you bought a diet drink, only to be frustrated that the ingredients are as unhealthy as the regular drink? One of the most comforting things about the most-loved consumer brands is their consistency of delivery. When you buy them, you get what you sign up for. Why should the same not be true of mutual funds, particularly given that investing is not about a single transaction but a long-term experience?
For years, mutual funds have enjoyed ambiguity around definitions and labels. What ‘mid-cap’ meant could be very different for two different fund houses; ‘infrastructure’ funds could carry banking exposure; and funds with conservative risk profiles could carry aggressive fixed-income risk.
