Skin in the game matters: Samir Arora suggests investors to question fund managers on personal exposure
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Underscoring the importance of transparency and fairplay on the part of fund managers and brokers, Samir Arora, founder and fund manager at Helios Capital Management, has advised investors to ask the right questions before making a money move. Arora urged investors to ask asset management companies (AMCs) or their fund managers when did they last invest in their fund/strategy and what percentage of their net worth is invested in the schemes they are recommending. “You should ask an AMC or its fund managers when did they last invest in their fund/strategy, how much % of their net worth is invested in whatever they/he is recommending etc.,” Arora said in a tweet. The same applies to the fund managers as well. “Similarly you can ask a wealth manager who recommends (say) a new fund/strategy etc.- what is his personal exposure,” the tweet said further. For traders, the same principle applies, he added. “You can also ask a broker- how much of h...