Tuesday, October 18, 2016

Sensex is down 5% but your MF may not be so...How?? Find out




Dear Investor,

Sensex has touched all time high of 29,045 on 8th September 2016 closing, as far as this year is concerned. From that level till yesterday it falls 1,516 points which is -5.22%.


In the same time, BSE Midcap falls only -1.24%, whereas BSE Small cap delivered 2.27% higher.

This will be hardly noticed by the common investor, some of our IFA community as well.

Markets are always dynamic and if somebody keep looking at the number, they will be in a better position to understand what is moving and what is not, which is very important when it comes to fund selection.

I have listed down 50 funds across the category which is normally advised by many of my IFA friends.

Fund
Returns
Reliance Small cap
3.09%
DSPBR Microcap
2.84%
L&T Emerging Business
2.74%
MOSL Focused Long Term
2.48%
L&T Midcap
2.16%
Sundaram SMILE
1.66%
Mirae Emerging Bluechip
1.62%
Kotak Midcap
1.28%
BSL Pure Value Fund
1.23%
DSPBR Small & Midcap
1.09%
BSL Equity
0.94%
Invesco Mid N Small
0.76%
L&T India Value
0.73%
Sundaram Select Midcap
0.68%
Franklin Smaller Co
0.62%
Mosl Midcap 30
0.19%
UTI Midcap
0.09%
Principal Emerging
-0.04%
IDFC Sterling
-0.24%
SBI Magnum Balanced
-0.25%
Mosl Multicap 35
-0.26%
Franklin Prima
-0.34%
DSPBR Balanced
-0.34%
HDFC Midcap Opp
-0.50%
IDFC Premier
-0.79%
L&T India Prudence
-0.93%
BSL Balanced 95
-0.99%
HDFC Prudence
-1.09%
ICICI Pru Balanced
-1.14%
Tata Balanced
-1.35%
IPru Balanced Adv
-1.54%
ICICI Pru Multicap
-1.31%
DSPBR Equity
-1.70%
Reliance Reg Savings Bal
-1.71%
IDFC Classic
-1.72%
IDBI Diversified
-1.74%
SBI Bluechip
-2.11%
Franklin Balanced
-2.56%
Mirae India Opp
-2.63%
HDFC Equity
-2.85%
DSPBR Focus 25
-2.92%
Franklin Prima Plus
-2.93%
UTI Opportunities
-3.12%
HDFC Top 200
-3.21%
DSPBR Top 100
-3.25%
BSL Frontline
-3.29%
IPru Value Discovery
-3.43%
Franklin Bluechip
-4.00%
IPru Focused Bluechip
-4.01%
IPru Select Largecap
-4.02%

Some Interesting Observation

1. Small cap and Microcap fund has delivered more return than small cap index, though mentioned funds are not exactly belonging to this index.
2. Midcap index is down by -1.24%, whereas many midcap funds delivered positive return.
3. Sensex falls -5.22%, all the large cap fund falls lesser than the index.
4. Balanced fund delivered FLAT to -1.5%, which is very good as far as, those who seek monthly cash flows are concerned.
5. Multi cap protected downside as well as delivered good returns. Somebody wants stable return.
6. ICICI Pru Value discovery is lagging compared to BSL Pure Value and L&T India Value Fund. BSL and L&T is continuously getting momentum in that category! One of the reason could be size, it is always debatable.
7. When am writing around 9.30 am today, the market is already 200 points up. As long as your waiting period is 3 plus years, don't bargain for minimal correction, sometime you were forced to buy at high level or you will never buy also!
8. Still small cap are trading at discount to the 2008 peak and everyone is worried about the valuation. More than the cap, stock selection is the key. Many fund houses have increased their research analyst head count in the recent past.
9. Rise and falls are very quick in the bull market, instead of looking for news, micro and macro data, numbers at various point will give you better clarity I believe. This data will help you to do lot of strategy going forward.
10. Last, but not the least "No fund manager is keeping the same stock for longer years in their portfolio due to volatility of the stock performance. In some cases, if it grows bigger than they expected they have to reduce their weight to comply regulation. In some cases, they have to match their performance with the peer group. These kind of data really helps to take better informed decision than ever before.





I thank Mr.
B. Padmanaban, CFPCM 
of www.fortuneplanners.com  for his help in generating the article. 
--


Srikanth Matrubai,   CEO, SriKavi Wealth 

photo
Mobile: 9972520155


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