I have invested lump-sum of Rs 6,10,000 in mutual fund on 30th October 2017. I brought 1) IDFC Infrastructure Fund - Direct Plan - Rs 100000,2) Aditya Birla Sun Life Pure Value Fund - Direct Plan - Rs 100000, 3)BNP Paribas Multi Cap Fund - Direct Plan - Rs 100000, 4)L&T Emerging Businesses Fund - Direct Plan - Rs 100000, 5)Principal Hybrid Equity Fund - Direct Plan - Rs 110000, 6)ICICI Prudential Equity & Debt Fund - Direct Plan - Rs 100000. Its been a year and my P&L is (-56,797). Its looks like I’m not the guy for mutual investment. Please give suggestion when to leave from the above mutual fund or give advice to proceed further?
The primary mistake you did is to invest all the money you had at one go.What happened is you have invested when the market is peaking and subsequently in 2018 it slowly started giving negative returns.Best way would be to split your investments and invest them via Systematic investement plans.
1 Like
It doesnt matter which fund u bought
Anyone who added mutual funds in second half of 2017 did one of the biggest mistakes in stock market (I also did that mistake btw I am not trying to mock here and I also did lumpsum 
)
Since you seem to be concerned I assume this 6 lacs is the max capital you can allot to mutual funds, so you have to exit partially and be ready to add at lower levels later once all the macros subside and election season volatility subsides
How much you exit and how you exit step by step you have to decide by keeping close eye on market.
Mostly i would say exit 30-50% right now, and then check how market behaves. One should always be exposed to that extent to a bad market where you are not in panic.
1 Like
Thanks!
Thanks Newbie420!
Thanks trader_dude!!!
That’s the real question, its time to sit tight and watch or its the right time to come out with these funds.
Ofcourse that’s the real question, it finally also depends on risk appetite of the investor
I am not saying market will never go up, but assume market will go to 12000 also, how much will a midcap mutual fund appreciate, or even a normal mutual fund, think about all that
And then based on your risk appetite to hold on for those levels, you decide accordingly
1 Like
I cannot tell how bad it is for the UNINFORMED investor in this country.
He always buys and sells at the wrong time and blames the markets for the losses.
He has to learn the right stuff before investing and that takes some time.
For starters , understand macro economic indicators and volatility and a little bit of technical analysis and you will never ask questions like these.
1 Like
have patience & add more on dips. many investors like you (even SIPs in good equity MFs last 2-3 years not delivered at all inspite of markets scaling new highs) are stuck as they don’t invest based on a strategy…
1 Like
Hi @devaragul,
If you are looking at your p&l just after 1 year of investing in mutual funds, then mutual funds is not for you. For that matter, sorry to say, but no investment is for you. The only thing that meets your expectation is fixed deposit.
If I were you, I would have checked the return after at least 5 years, if not 10 or 15 years…
2 Likes
Don’t panic. Hope you invested for long time. Everyone who started investing during last one year in mf whether SIP or lump sum is in loss due to the current fall in the market. Keep your calm, everything will be alright within year or one and half. If you have surplus amount you can add in instalments for averaging.
1 Like
yes both lump sum & SIP are in losses but for eg - BNP Paribas Multi Cap Fund has a 8% loss compared to SIP loss of 19% & generally thats the case. I personaly invest based on moving averages in ETfs & book profits in staggered manner which ensures that take home profits every year. SIPs in actively managed funds have not delivered in past 1-2-3 yrs inspite of markets scaling new highs.
1 Like
SIP is a good thing to do, but if you do a good thing at worst time, then it is no longer useful.
These advertisements like ‘Mutual funds sahi hai’ in 2017, and the extreme SIP propaganda promoted retailers to do SIPs from 2017 till now.
You just imagine if market shows its bad face, when these people will break even on their SIPs and how many will even stay put until then (not book loss and exit the market)
Basic rule of investing says any PE over 22 is dangerous to invest, then why people promoted doing SIPs in last 2 years?
Also dont believe stuffs like ‘You cannot time the markets’. Just imagine this, people took 5 years to make 50% profit on their portfolio, and in 2 months, all that profit was eroded in Feb-Mar in midcap stocks.
And dont tell me no one saw it coming please, just basic overview of market is enough to take such decisions which will save your money. Saving capital is also equal to making profits.
Lot of retailers have already exited market over 11500 or even over 11000, why did they do so? I think most of them are not even putting money now. They have a basic understanding of market, and they dont care if they lose 5-10% profit if Nifty went to 12000.
Just think over this.
1 Like
yes agree. this is what exactly i wanted to tell. it always makes sense to buy & sell in staggered manner. i’ve devised a simple model & works for me / my friends. use these corrections to buy ! stay away from SIPs etc…there is a logic to it but needs a lot of writeup & many just disagree…
1 Like