Good time to invest in Mutual Fund

Personal finance
1

My mutual fund portfolio is in loss and a few mutual funds with just about +1% XIRR. It can be attributed to bad market as I started investing last year when markets were high. I have invested in good funds:

  • Canara Robeco Emerging Equities
  • DSP BlackRock Focus Fund
  • HDFC Mid-Cap Opportunities Fund
  • Invesco India Contra Fund
  • L&T Infrastructure Fund
  • L&T Midcap Fund
  • Motilal Oswal Multicap 35 Fund
  • SBI Blue Chip Fund
  • SBI Magnum Multi Cap Fund
  • Tata Equity P/E Fund

Besides these I invest in bank FD’s and deposits to not put all my money at risk.

Should I reconsider my portfolio or keep investing in these?

2

@lightonhill

you are doing just fine.

Don’t worry so much about draw downs or losses.

no one can time the markets , i repeat NO ONE CAN TIME THE MARKETS. There is no such thing as “i invested when markets were at high”. As if someone can know when the markets are at low or high at any given time. if anyone knew that , he would be the richest investors of all time.

Where are market headed?
Volatility is going lower these days , which is good, but can’t say if market will make highs as interest rates are rising,trade wars and 2019 elections are closing in.

Don’t expect any returns this year and the next.

FD’s make loss. keep money in FD only if you need guaranteed monthly income.

Keep investing.

2 Likes
3

Any expectation of returns should be after your investment has completed 5 years and if you need the money before that then you have put in a wrong place.
Please use Morning star and find out how much common stocks you have across the funds and eliminate the funds which you feel are not doing well or have performed below their category average.

Ask a Fee-only Financial planner for advice on the combination of stocks and bonds/Fixed income products which you need to have considering your financial position and risk tolerance along with goals you have in mind to accomplish in life with the money invested.

4

@trader_dude has provided the perfect answer, completely agree with him.

Mutual funds investments are like running marathon, its a wealth creation process. One should not worry too much about the short term performance, however a regular monitoring of the fund is required, so that you don’t get stuck with bad funds.

Let’s analyse how each of these funds have performed using the Mutual Funds bot. (all values are based on Monthly closing values, as of 1st June 2018)

Canara Robeco Emerging Equities fund seems to stuck in a range, neither up nor down.

The Average NAV of the Fund for the Past 10 months is 97.73
Current NAV of the FUND is 96.96, which did not deviate much. So its safe to stay invested.

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DSP BlackRock Focus Fund is having a tough period this year.

The Average NAV of the Fund for the Past 10 months is 23.24
Current NAV of the FUND is 23.24. which did not deviate much. So its safe to stay invested.
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HDFC Mid-Cap Opportunities Fund seems to be the worst performer.

The Average NAV of the Fund for the Past 10 months is 33.95, corrected badly from recent sell off in Mid caps. Need to keep an eye on this fund, to see if the performance improves.

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Invesco India Contra Fund seems to be the winner, performing well. As they say, its wise to ride the winners, You can add more funds to this fund considering its better performance.

The Average NAV of the Fund for the Past 10 months is 48.62
Current NAV of the FUND is 50.14, which indicates bullishness.
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L&T Infrastructure Fund and L&T Midcap Fund seems to be moving inline with the markets, facing significant corrections.

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SBI Blue Chip Fund and SBI Magnum Multi Cap Fund looks to be in safer position when compared to other funds.

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Tata Equity P/E Fund looks stable for now.

The Average NAV of the Fund for the Past 10 months is 137.62, which did not deviate much from current levels.

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out of all funds, Invesco India Contra Fund seems to be the best one.

1 Like
5

Thanks for great reply :slight_smile:

6

Even for a novice/risk averse investor, I would say dont put everything in mutual funds.

A risk averse investor should themselves also invest part of their amount in bluest of blue chips e.g. the top 10 or 20 stocks. And this year has made it pretty clear which are those top 20 stocks.

Why I say so is because these foolish mutual funds put money in ICICI, SBI type of craps so your money is most probably rotting unless you have 5 year plus timeframe.

In the meanwhile, the TCSs, MRFs, Infys make new highs.

7

I visited Morning Star. Is this feature available under MF tools?

8

Yes
It’s called X Ray