Investors looking for the next source of alpha should resist the temptation to chase markets, sectors, or asset classes that have already generated strong returns and instead focus on areas currently out of favour, said Kalpen Parekh, Managing Director and CEO of DSP Mutual Fund, at the ET Alpha Wealth Summit on Thursday.
Speaking at the summit, Parekh cautioned that one of the most common investing mistakes is assuming that recent winners will continue to outperform. According to him, future alpha is often found where returns have been scarce, investor ownership is low, and market interest remains limited.
