The market is currently witnessing one of the worst volatilities in more than a decade. The Sensex is swinging by 1,000 points effortlessly on a daily basis. And the direction seems to be downhill as of now. This has adversely impacted the net asset value (NAV) of equity mutual fund schemes, which are down in double-digits for the year till date March 16, 2020. International, energy and banking-dedicated equity funds are the worst hit. The best performing categories are also in the red. Pharmaceutical and thematic MNC funds that have fallen down by 4.74 per cent and 13.88 per cent respectively in the same period.
There are some funds among the international lot that have lost almost one-third of their value year-till-date (YTD). As such, many of us who thought they had missed the bus earlier might be thinking of getting on to it. Many opportunist investors may be weighing their options. The question is: should you buy funds that have slipped the most? Now that the NAV of the funds have seen such a sharp fall, does it make sense to invest in a fund that has nose-dived? Investors in general are not good at timing. Many of them ‘buy high and sell low’ against the cardinal principal of investing that says ‘sell high and buy low’.
To get an answer to the above question of whether it makes sense to invest in worst performing funds, we carried out a study of funds for the past 12 years. The study was conducted at two levels: first at the category level and second at the fund level. It has been seen that there is always a change in the category of winners and losers.
この記事は Dalal Street Investment Journal の March 30, 2020 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。
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この記事は Dalal Street Investment Journal の March 30, 2020 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。
すでに購読者です? サインイン
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