Mutual fund investors often rely on benchmark returns, ratings and research recommendations to assess whether a scheme deserves a place in their portfolio. But what should investors make of a fund that has consistently lagged its benchmark over multiple periods, even as research platforms continue to rate it highly?
Two investors who reached out to ETMutualFunds flagged that Parag Parikh ELSS Tax Saver Fund has underperformed its benchmark over the one-, two- and three-year periods, raising concerns about its investment strategy and whether they should continue to consider the scheme. The concerns come even as research platform PrimeInvestor has assigned the fund a five-star rating and a Buy recommendation.
