How many times have you heard your distributor, financial adviser or fund house say “Invest in this scheme, it is a consistent performer”? Consider this: till the end of September 2016, ICICI Prudential Multicap Fund (formerly ICICI Prudential Top 200 fund) had given top-quintile performances in the past 1-, 3-, 5- and 7-year periods compared to its peers.
However, between 2005 and 2015, it finished in the top quintiles in only 3 out of 11 calendar years. We’re not saying it’s a good or bad fund. But, if numbers can be polished, they can surely be massaged well enough to give a picture that may not be entirely accurate. So, what really is a consistent performer?
