Omkeshwar Singh, head, Rank MF, a mutual fund investment platform, answers your queries.
Those who cannot bear significant downturns (as much as 40 per cent) or have a short horizon should exit entirely.
The S&P BSE Midcap and the S&P BSE Smallcap indices have managed to stay afloat in a volatile January that saw the frontline indices hit their respective 52-week high levels and then slip. While the S&P BSE Sensex has lost over 2 per cent thus far in January, the S&P BSE Midcap and the S&P BSE Smallcap indices have gained nearly 2.5 per cent and 4 per cent, respectively during this period.
The equity market's recent downturn appears unlikely to slow the brisk pace of mutual fund (MF) scheme launches, at least in the coming weeks. Last month, fund houses introduced 21 new equity schemes, with another five launches already lined up for November. The number of filing with markets regulator, Securities and Exchange Board of India (Sebi), suggests this momentum will continue with asset management companies (AMCs) seeking approval for 21 more equity schemes in October.
Nikunj Saraf, Vice President Choice Wealth, answers your mutual fund queries.
Nikunj Saraf, Vice President Choice Wealth, answers your queries.
Do you have financial planning queries? Ask rediffGURU Abhishek Dev.
Indices across Indian equity markets have edged towards new record highs before undergoing a small correction in the past few sessions. The National Stock Exchange Nifty has gained 20 per cent in the past year; mid-caps (up 33 per cent), small-caps (up 31 per cent), and micro-caps (up 44 per cent) have done better. Several factors have precipitated this rally.
The week's losses wiped out investor wealth worth Rs 18.43 trillion, with the total market capitalisation of BSE-listed firms now at Rs 441 trillion.
Cash trading volume declined in 2022, even as benchmark indices outperformed their peers. The average daily trading volume (ADTV) for the cash segment fell 18 per cent year-on-year to Rs 61,392 crore (NSE and BSE combined). The ADTV for the futures and options (F&O) segment (NSE and BSE combined) stood at Rs 125 trillion (notional turnover), up 117 per cent from the previous year.
'We expect market consolidation and recommend buying during market dips.'
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
'Invest only in stocks of those companies that deliver on earnings and there is earnings visibility too for the next few quarters.'
Actively managed mutual fund (MF) schemes had been at the receiving end over the past few years for their inability to beat their benchmarks. However, the slump in shares of Adani Group companies - two of which are part of the benchmark National Stock Exchange Nifty50 index - have helped them improve their performance vis--vis exchange-traded funds (ETFs) or index funds.
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
Nikunj Saraf, Vice President Choice Wealth, will answers your queries.
Mid and small-cap stocks have been the stars of Indian stock markets this year. Recognising this, mutual funds have launched a plethora of schemes targeted at this universe of stocks this year.
Market players attribute the rally in small and midcaps to flows from retail investors and domestic institutions.
Among top losers that dragged down key indices were Infosys, TCS, Reliance, SBI, Tata Steel and ITC, falling up to 2.15 per cent.
Investors should use a mix of active and passive funds.
Among Sensex firms, HDFC Bank climbed more than 2 per cent. TCS, Maruti, Infosys, Reliance Industries and Bharti Airtel were among the major gainers. State Bank of India, JSW Steel, ITC, Tata Motors, UltraTech Cement and Nestle were among the laggards.
To be fair, one year is too short a period to judge the schemes' performance.
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
Equity benchmark indices Sensex and Nifty ended almost flat in highly volatile trade on Thursday amid the lack of any immediate trigger. The 30-share BSE Sensex dipped 5.43 points or 0.01 per cent to settle at 66,017.81. During the day, it hit a high of 66,235.24 and a low of 65,980.50.
SBI was the top laggard in the Sensex pack, tumbling around 5 per cent, followed by Axis Bank, ICICI Bank, UltraTech Cement, Bajaj Finance, HDFC Bank and Bharti Airtel. On the other hand, PowerGrid, ITC, NTPC, Tata Steel and Titan were among the gainers.
'If their allocation to certain segments have become high due to strong returns over the past three-four years, they should rebalance their portfolios and bring them in line with their long-term asset allocation.'
Among the Sensex shares, Infosys rose the most by 1.37 per cent, followed by Larsen & Toubro (0.90 per cent), and Wipro (0.83 per cent). HDFC Bank, ICICI Bank, Reliance Industries, ITC, TCS, Kotak Bank, Asian Paints and Titan were among the lead gainers.
If you redeem your investments when prices have fallen sharply, you will be selling at low prices and may make a permanent loss. On the other hand, if you remain patient and remain invested, you give your investment the time to recover, says Dwaipayan Bose
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
Data since 2005 show that the five years with the highest rainfall saw average market returns of 8.98 per cent, while the five driest years returned 25.7 per cent on average.
Ulhas Joshi, Head -- Sales, Rank MF, a mutual fund investment platform, answers your queries.
In the Sensex pack, Bajaj Finance and Bajaj Auto ended up to 6.09 per cent higher after posting strong quarterly numbers.
One common mistake investors commit during profit booking is not having a plan for the redeployment of the money that comes into their account.
Only the top 5 per cent profit makers account for 75 per cent of profits.
Once a quality stock has been bought, the next challenge is to hold on to it -- no mean feat in this age of information overload and incessant noise.
rediffGURU Nikunj Saraf suggests considering small-cap, mid-cap, and multi-cap mutual funds.
rediffGURU Ramalingam Kalirajan answers your personal finance queries.
Nikunj Saraf, Vice President Choice Wealth, answers your queries.
