Analysis of Equity Funds in 'Bear' Market

[life2007]

Thanks Vicky for the Input

I have received 'first account statment' for all the funds I started investing on Jan 21 except DSMPL Equity. I guess it is a mistake that I had applied for SIP for 6 months whereas the minimum period is for 12 months. Now that I understand that it has been hammered, I hope they will reject it. I would then go for Franklin Prima.

Regards

Jeet

Originally Posted by Vicky78

DSP ML Equity got hammered during this correction.

Losing lesser that the average fund was Franklin Prima Plus. It held its ground as it had so many times in the past. The rest of the funds lost about 16% on an average, like most of the funds.

Funds like Magnum Contra should do well during a bear market (ex 2000-2001). During correction phases as these it behaves like almost any other fund.

[surfingminds]

I am in the process of my portfolio churning. This fall most of high growth funds in my folio lost 15-20 percent.

I want to increase my Equity diversified and some balance funds so started buying
HDFC Prudence- balance
Reliance Growth- high growth
JM Emerging Leader- small and mid caps.

I want to know from you guys which is your favaroite in the said categories. I am trying to compair

I have Reliance Vision and Reliance Growth now
I have HDFC Long term Equity and HDFC mid cap opportunities.
so it seems logical to buy DSPML Equity

Whats your view speically vicky as DSPML is his fav.

regards

[cool_archie]

I'd suggest take a look at Kotak Opportunities

[Vicky78]

Originally Posted by surfingminds

I am in the process of my portfolio churning. This fall most of high growth funds in my folio lost 15-20 percent.

I want to increase my Equity diversified and some balance funds so started buying
HDFC Prudence- balance
Reliance Growth- high growth
JM Emerging Leader- small and mid caps.

I want to know from you guys which is your favaroite in the said categories. I am trying to compair

I have Reliance Vision and Reliance Growth now
I have HDFC Long term Equity and HDFC mid cap opportunities.
so it seems logical to buy DSPML Equity

Whats your view speically vicky as DSPML is his fav.

regards

Considering the track record of DSP ML Equity, I am totally in favour of it.

[life2007]

Hello Friends !

There seems to be a strong 'Bear Phase' currently. As I am writing this, already the Sensex is down by 700 points.

This makes me wonder whether it would be wise to invest money in small Lumpsums say around 5K each fund for few months rather than SIP 0.5K or 1K per month spread over 1 or 2 years.???

If the above answer is affirmative, could we add lumpsums to the exisiting folio numbers. I started investing from Jan-08. So by this way, let the nominal SIP continue over couple of years, but at the same time a small lumpsum could also be invested in the same folios.

Please advise ? How many of you feel that this is a sensible situation. Yes! I understand, it is again timing of market.... but the difference in this case is that the SIPs are continuing at slow pace, but at the same time to accelerate capital appreciation, (possibly due to subconscious thought , that I have lost considerable time earlier) I was thinking of putting small lumpsums.

Thanks & Regards

Jeet

[mrindia]

Ya Jeet!
I also follow this strategy of putting small lumpsoms to existing SIP folios in bear run. But beware of catching a falling knife. When u feel its on the ground, hold it. Its totally one' assumption about the bottom of bear phase. Even then, few points up or down do not matter if u go by ur best assumption.
mr india

[life2007]

Thanks for this information.

I liked your 'poetic language' of falling knife. But again, we can never know when it will touch the ground and then hold it. That is why I said of putting small lumpsums spread over few months.

Again, since I am planning for more than 5 years investment (which I guess is good enough to be considered "long term"), even if the NAV goes bit below from here should not matter much. Because, my normal layman thinking and assumption states that Sensex will atleast reach where it was one day i.e above 21K. So if we invest while it is around 16-17K, we still tend to gain may be after some months or after some years. Check me if I am wrong... I am literally not a financial guy....neither had any money till last few months to even think about Shares and Mutual Funds

Thanks again

Jeet

Originally Posted by mrindia

Ya Jeet!
I also follow this strategy of putting small lumpsoms to existing SIP folios in bear run. But beware of catching a falling knife. When u feel its on the ground, hold it. Its totally one' assumption about the bottom of bear phase. Even then, few points up or down do not matter if u go by ur best assumption.
mr india

[surfingminds]

Originally Posted by life2007

Thanks for this information.

I liked your 'poetic language' of falling knife. But again, we can never know when it will touch the ground and then hold it. That is why I said of putting small lumpsums spread over few months.

Again, since I am planning for more than 5 years investment (which I guess is good enough to be considered "long term"), even if the NAV goes bit below from here should not matter much. Because, my normal layman thinking and assumption states that Sensex will atleast reach where it was one day i.e above 21K. So if we invest while it is around 16-17K, we still tend to gain may be after some months or after some years. Check me if I am wrong... I am literally not a financial guy....neither had any money till last few months to even think about Shares and Mutual Funds

Thanks again

Jeet

I think you caught up at the peak of market. Its tooo early to conclude that we are at bear phase for next 2 years. IF you are long term keep your long term 5-10 years. Same level 16 K was illogical for me in fact after 12K I consider the market in mania not following fundamentals then all the junta joined and pumped this level to 21 and then smart people got away when few dumps were still buying.

Don't worry there is no reason to believe that indian growth story will behave like market centiments. However we are exposed to more risk..

As you already selected good MF and SIP its the best appproach. however as you worry now if down trend goes for 2 years. lets seee you can consider lumpsum when you seel levels like 14 k and 12 k.

[life2007]

Hi !

Sorry for not being able to express clearly. I never wanted to convey that we are at bear phase for next 2 years. Gosh! Dont even think of Sensex going down to 14 to 12K. I think that is bit too pessismistic. Some statements from PC himself is encouraging.

But thank you for your suggestions

Regards

Jeet

Originally Posted by surfingminds

I think you caught up at the peak of market. Its tooo early to conclude that we are at bear phase for next 2 years. IF you are long term keep your long term 5-10 years. Same level 16 K was illogical for me in fact after 12K I consider the market in mania not following fundamentals then all the junta joined and pumped this level to 21 and then smart people got away when few dumps were still buying.

Don't worry there is no reason to believe that indian growth story will behave like market centiments. However we are exposed to more risk..

As you already selected good MF and SIP its the best appproach. however as you worry now if down trend goes for 2 years. lets seee you can consider lumpsum when you seel levels like 14 k and 12 k.

[surfingminds]

Originally Posted by life2007

Thanks for this information.

I liked your 'poetic language' of falling knife. But again, we can never know when it will touch the ground and then hold it. That is why I said of putting small lumpsums spread over few months.

Again, since I am planning for more than 5 years investment (which I guess is good enough to be considered "long term"), even if the NAV goes bit below from here should not matter much. Because, my normal layman thinking and assumption states that Sensex will atleast reach where it was one day i.e above 21K. So if we invest while it is around 16-17K, we still tend to gain may be after some months or after some years. Check me if I am wrong... I am literally not a financial guy....neither had any money till last few months to even think about Shares and Mutual Funds

Thanks again

Jeet

I think you caught up at the peak of market. Its tooo early to conclude that we are at bear phase for next 2 years. IF you are long term keep your long term 5-10 years. Same level 16 K was illogical for me in fact after 12K I consider the market in mania not following fundamentals then all the junta joined and pumped this level to 21 and then smart people got away when few dumps were still buying.

Don't worry there is no reason to believe that indian growth story will behave like market centiments. However we are exposed to more risk..

As you already selected good MF and SIP its the best appproach. however as you worry now if down trend goes for 2 years. lets seee you can consider lumpsum when you seel levels like 14 k and 12 k.