Is It A Good Time To Invest In Mutual Funds?
Dalal Street Investment Journal|Dalal Street Investment Journal Vol 33 Issue 17

The volatility in the equity market has deterred many investors from adding in fresh money into mutual funds. DSIJ explains, how and where to invest in these times.

Is It A Good Time To Invest In Mutual Funds?

The year 2017 was a great year for equity investors. During the year, investors witnessed frontline indices touching life-time highs almost every month, with few exceptions. Such rise in equity prices generated tremendous returns for mutual fund investors who had stuck to equity funds. The impressive rise in the equity prices and indices attracted many investors to the equity funds.

The skyrocketing equity market motivates the new and existing investors alike to invest in equity mutual funds. This is reflected in the rise in the assets under management (AUMs) of the domestic mutual fund industry. It has increased by 32.4 percent in 2017. At the start of the year, the total AUMs stood at Rs 17.06 lakh crore, and by the end of 2017, it stood at Rs 22.6 lakh crore. The year of 2018 started off well, with the equity markets touching their life-time highs. Nevertheless, in the Union budget 2018, the Government of India reintroduced the long-term capital gain (LTCG) tax on equity investments, along with the dividend distribution tax (DDT) on mutual funds. These changes spooked the markets. What also played the spoilsport were the weak global cues along with the geopolitical tensions.

This has made the markets volatile and the worst-hit were the small-cap and mid-cap stocks and their benchmark indices tumbled more than 10% year till date. Such a fall has curtailed the returns of the investors and created a worry in their minds about their own investments. There is also evidence which suggests that new investors are now opting for more traditional investment options such as fixed deposits due to the rising interest rate scenario.

We feel this may be a knee-jerk reaction by the investors on account of the sudden fall in the equity markets. We believe that this is not a right time to dump your investments and let the volatile markets force you to take wrong investment decision.

The history and what it teaches

この記事は Dalal Street Investment Journal の Dalal Street Investment Journal Vol 33 Issue 17 版に掲載されています。

7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。

この記事は Dalal Street Investment Journal の Dalal Street Investment Journal Vol 33 Issue 17 版に掲載されています。

7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。

DALAL STREET INVESTMENT JOURNALのその他の記事すべて表示
How To Invest In An Ageing Bull Market
Dalal Street Investment Journal

How To Invest In An Ageing Bull Market

Bull rallies (periods when stock prices rise) and bear declines (periods when stock prices fall) are natural parts of stock market cycles, but they don't follow a fixed timeline.

time-read
5 分  |
July 29, 2024
Should You Entrust All Your Money To A Single AMC?
Dalal Street Investment Journal

Should You Entrust All Your Money To A Single AMC?

If you are a market participant, you have probably heard the quote 'don't put all your eggs in one basket', which suggests diversification. Investors often focus on diversifying across categories like large-cap, mid-cap and small-cap, but they may unintentionally overlook diversification across different AMCs. The question arises: is AMC-wise diversification really necessary? Rakesh Deshmukh takes a closer look at this scenario

time-read
7 分  |
July 29, 2024
Wild Swings Engulf Global Equities
Dalal Street Investment Journal

Wild Swings Engulf Global Equities

U.S. stock markets experienced significant volatility. An early-week rally pushed the markets to new highs, but this momentum faded, primarily due to weaknesses in the tech sector. The major indices had a mixed finish with, S&P 500 and Nasdaq closed lower, while the Dow recorded a notable gain.

time-read
2 分  |
July 29, 2024
U.S. Elections and China's Economy Hamper Commodities
Dalal Street Investment Journal

U.S. Elections and China's Economy Hamper Commodities

Commodity markets experienced selling pressure in the last fortnight, driven by uncertainties surrounding the upcoming U.S. presidential elections, concerns about the Chinese economy, and increased agricultural production in Brazil.

time-read
2 分  |
July 29, 2024
Wealth Building For Retirement Through Mutual Funds
Dalal Street Investment Journal

Wealth Building For Retirement Through Mutual Funds

Retirement is one of the most crucial and lifechanging phases. It marks a period where maintaining your lifestyle becomes paramount even though your regular income stops.

time-read
3 分  |
July 29, 2024
Mastering Investment with Information Ratio
Dalal Street Investment Journal

Mastering Investment with Information Ratio

Information Ratio helps in navigating the complexities of the investment landscape by assessing an active fund manager's performance. And though it has its limitations, it remains an essential part of the finance industry. The article explains what Information Ratio is and how investors can use it as another tool

time-read
6 分  |
July 29, 2024
Plan To Be Financially Independent
Dalal Street Investment Journal

Plan To Be Financially Independent

Each of us aspires to be financially independent as it ensures having enough resources to be self-sufficient and control our finances.

time-read
2 分  |
July 29, 2024
❝Technology is the new game-changer"
Dalal Street Investment Journal

❝Technology is the new game-changer"

With a new breed of young investors entering the financial markets, it is the use of technology that is increasingly playing a major role in how investments are done and tracked. Anand Radhakrishnan, Managing Director, Sundaram Mutual Fund, shares his opinion about how this factor is turning into a significant tool and how it will shape the strategies of his company

time-read
5 分  |
July 29, 2024
What If Donald Trumps?
Dalal Street Investment Journal

What If Donald Trumps?

The potential election of Donald Trump as president in the U.S. carries significant implications for the Indian equity market. It could lead to changes in the global trade dynamics, in particular affecting the Indian IT sector while also raising inflation levels and leading to yet another revision in the visa programme for Indians who want to work in the US. The article takes a closer look at what may lie in store

time-read
6 分  |
July 29, 2024
Sectoral Gains Make A Mark
Dalal Street Investment Journal

Sectoral Gains Make A Mark

Benchmark indices continued their uptrend, reaching new record highs, although the pace has slowed as the broader markets faced selling pressures

time-read
2 分  |
July 29, 2024