Analysis of Equity Funds in 'Bear' Market

[Vicky78]

Re: Is the time ripe to purchase units?

Yes you could purchase now as the markets have crashed. More units can be accumulated with the same amount of money as compared to earlier when the NAV was 59.

However a Sip would be a better option as it is almost impossible to predict where the market is heading. Almost every analyst and global research firm were taken by suprise during this sharp fall. SIP would average the cost and provide a better option than timing the market.

Happy Investing

 

[mrindia]

Re: Is the time ripe to purchase units?

You are right, Reufra!
NAV counts if you have opted for dividend option. Coz dividend is declared on number of units you have, if you manage to purchase more units, you will get more ammount as dividend. The stretegy of top-up purchases in such folio when NAV falls carries good result.

 

[ekams]

Re:

Dear Friends
I Too Agree That The Investors Should Take The Decision.i Decided To Redeem On 18th- Jan .i Had Good Profit.but My Broker Said Dont Redeem.in This Conflict T Lost One Day.i Decided To Redeem What Ever May Be The Trend .with Some Loss In Profit I Redeemed.now All Those Funds Are In Deep Down After 18th .so Now Im Planning To Invest Back.
Regards
Ekams

 

[reufra]

Re: Is the time ripe to purchase units?

Thanks for your comments mrindia & vicky.While i am seriously thinking to buy more units,the market is again picking up.The NAV value has gone up to 60 again and i hope it would countinue going up in the comming days.I would wait for some more days and see how it goes.

Meanwhile SBI Magnum Tax gain is yet to declare the divident for this year and probably they would do it in FEB/MAR.After that the NAV value would come down automatically.Besides i also heard that,normally before or after the budget the NAV would come time?.Considering all this i am thinking to wait for some more time.What do you say?

 

[mrindia]

Re: Is the time ripe to purchase units?

Thanks for your comments mrindia & vicky.While i am seriously thinking to buy more units,the market is again picking up.The NAV value has gone up to 60 again and i hope it would countinue going up in the comming days.I would wait for some more days and see how it goes.

Meanwhile SBI Magnum Tax gain is yet to declare the divident for this year and probably they would do it in FEB/MAR.After that the NAV value would come down automatically.Besides i also heard that,normally before or after the budget the NAV would come time?.Considering all this i am thinking to wait for some more time.What do you say?

If you have large sum to invest, pick up funds daily.......if u can!!!
Mkt is so unpredictable these days.

 

[surfingminds]

Re: Why To Stay Invested Even When The Markets Start Falling ?

so many times do i listen to this advice :
Long term investors need not worry or panic keep a hold. Don't listen to what they say sometimes i feel its just to load the stuff which is over valued.

here what it matters is even as a long term what value you enter into the script. If you were funamentally correct and entered at good technical point you must be having good portfolio which will l pay you 20% per anum not more than that.

but you can adopt a regular churning policy to regulary get into good performing stocks or MF>
But really to answer your question what to do in market crash.
Some times I feel shed half of your investment and reenter again into good stocks or same holdings as they will be much cheaper.

 

[Vicky78]

Re: Why To Stay Invested Even When The Markets Start Falling ?

Selling half the investment and reentering... well that something the fund manager is supposed to do. That would be a good strategy for stocks but may or may not work out for mutual funds. It is very much possible that money lost in timing the market could be greater than higher purchase premium paid through SIP in a rising market.

if we continue to invest through SIP in a falling market, over the long term (5-10 years) the results could be ripe. it is always better to stay invested in a falling or a bear market.

The only time staying invested would be an issue is if you are near your goal... say if you are a year away from retirement or your kid is going to college then if the market falls 20% then it would be a big problem. So it is important to regularly book profits in a rising market and put it into a debt funds a year or so before the goal

 

[mayurkotlikar]

Re: Why To Stay Invested Even When The Markets Start Falling ?

Also, when you see the NAV was once 18 (8 Rupee more than what you put in and a very good return in my opinion), when it got to 12, I guess it is also a good idea to buy.

Because you have seen things getting good when market goes bullish

BTW, did you observed that during the bull run, some funds were giving returns better than Sensex, but when market crashed, same funds lost more than market!!

 

[life2007]

Ok Friends !

I guess the worst period is over !! Now we should expect some sort of stability in market. I am not a fortune teller, but I guess we had enough downs since Jan 21 The bears had their full, I think the bulls should take on from here.

There is a saying that there is no big deal in going with the wind, what matters the most is how you take up the challenge while going against the wind. All tall claims of several MFs in 'bull' time have shown their true character in last 15 days.

Let us start something on analaysing who had the steepest fall enough to break the backbone and who had a fall but escaped with some minor bruises. I am totally new regarding sharpe ratio and risk grade terms, may be some experts like Vicky can give us an idea. Persons looking to build a new portfolio will benefit the most, while others can think to churn their portfolios at appropriate time.

To begin with, Please advise on what do you think about the below funds.

DSMPL Equity ( Vicky's favourite
Birla Sunlife Equity
SBI Magnum Contra
SBI Tax Gain 93
Birla Sunlife Tax Releif 96
HDFC Prudence
Franklin Prima Plus
Oh ! how can we forget the Tiger ? DSMPL TIGER. Has it been one off late?


Thanks & Regards

Jeet

 

[Vicky78]

Re: Analysis of MFs in 'Bear' Market !!

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,so did Magnum Contra.

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.