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Reader's corner: Does price-to-earnings ratio matter in an equity MF?

The P/E ratio of mutual funds can differ based on the investment styles of fund managers

Angel investors are looking before they leap as exits get tougher
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Ashwani Bhatia
Does price-to-earnings (P/E) ratio matter in an equity mutual fund? As an investor, should I be worried about a higher overall P/E in my schemes?

Price-to-earnings is one of the relative valuation metrics used to indicate the overall valuation of the fund. The P/E ratio of mutual funds can differ based on the investment styles of fund managers and should not be looked at as an indicator of future returns. Thus, a lower or higher P/E of a fund is not necessarily an indicator of expected returns being higher or lower. 

What exactly is side pocketing in a mutual fund? 

Side pocketing in