Stock selection is the most important parameter when it comes to long-term wealth creation. If you are invested in the right stocks, you will be rewarded while if the stock selection is poor then the possibility of erosion of capital remains high.
There are as many as 64 stocks in which fund managers have reduced stake consistently in the last four quarters. The fall in stake could also be related to booking of partial profits while for the rest, fund managers could be turning cautious.
More than 70 percent of the companies, or 48 out of 64 companies, have given negative returns to investors in the last year. Out of 48, there are 20 stocks that have fallen over 50 percent.
