Father
of index funds, astute investor, a campaigner of investor interests - Mr. John. C.
Bogle was all that and much more.
A trailblazer in the
global mutual fund industry John. C. Bogle revolutionised investing for the
common man. By popularising index funds, he provided ordinary investors with a
low cost alternative to participate in equity markets. His relentless focus to
reduce costs saw him structuring Vanguard as a mutual company (where unit
holders are shareholders of the company). Competitive forces meant that his
actions led to lower fees in the entire US MF industry. A strong believer in
safeguarding investor interests, he was an outspoken critic of unethical
practices in the industry.
While, Jack is no
longer with us, his mantra of ‘common sense investing’ and ‘buy and hold
strategy’ will guide millions of investors going forward too.
An avid follower of Mr. John Bogle, Mr. Prashant Jain, CIO, HDFC Mutual Fund said that he has tremendous
respect for him. In fact, reading John Bogle’s book helped him develop a deeper
understanding in his initial days. Jain said, “John’s message is simple yet
powerful. He taught us beating index is not easy and odds are always against
you. These learnings helped us understand that you have to take a balanced
approach and respect the index to generate alpha.”
Mr. Vetri Subramaniam,
Group President, Head of Equity, UTI Mutual Fund fondly recollects John’s powerful
investing mantras.
Mr. Vetri Subramaniam said, “He was a strong believer of ‘revision to
mean’.
He extended this philosophy to both asset class returns and
sectoral returns, a principle, which resonates with value investing.”
Mr. Vetri Subramaniam salutes John’s
entrepreneurial spirit, which disrupted the asset management industry and made
passive funds popular among masses.
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