Re: Why To Stay Invested Even When The Markets Start Falling ?
The stretegy of selling MFs at high NAV before mkt 'starts falling' & again repurchasing these whent NAV reaches its 'lowest' sounds theoretically interesting, but the fudamental on which its placed it totally unpredictable. i.e only issue is that nobody can predict
which side the mkt is heading & to what
extent it may go. You already know this answer, but i fear its the only answer
Your smart move may bite the dust if your calculations/speculation goes wrong. Any type of trading in volatile mkt is a wrong advice.
And remember, we are trading in mutual funds not stocks. We are paying huge ammount to "
Fund Manager" to scratch his head in bull n bear run as well. So, in downslide, its fund managers skill to buy/hold/sell the stocks to deliver returns comes into picture. He is the person who decides what stocks to buy or sell. Collective aim is to give risk free returns.
No doubt NAV is also dependent on stock's performence, but every MF/Stock will be red in bear phase. Good funds register lesser losses during fall but loss is still there.
So in stocks/MFs, whosoever may time the market (thats mere by chance)feels himself a
smart player
MFs due to large no of stocks in there folio are still less risky c.f stocks.
keep writing!
mr india
Hello,
Ok some support to my thinking, the question after all does not look stupid
I would like to hear views from other members as well !! The idea is to come to some sort of conclusion wherein each and every member of this forum will benefit.
I also think our finance minister PC is not doing too good for many small investors by 'virtually' locking each fund for atleast one year (selling before one year invites TAX). What you say ??
Thanks
Jeet