Their investments in mutual fund schemes through Systematic Investment Plan (SIP) have generated lesser returns compared to very safe, fixed deposits in banks. Baring IT and International category of funds, every other category have generated returns in single digit. The worst hits were those investors who had invested in small-cap, infrastructure and PSU dedicated funds. These funds on an average have generated negative return in the last 3 years. This return also includes the spectacular performance of year 2017 when some of the funds in mid and small-cap category generated returns northward of 50 per cent.
The story is not different for lump sum investors in the last 3 years. Mid-cap dedicated funds on an average, generated an annualised return of 7.77 per cent while, small-cap generated 4.69 per cent in the same period. Nevertheless, the situation might be changing for good now for these beleaguered categories, especially the mid-cap and small-cap categories. Since the start of the December (till January 6), the broader indices represented by BSE Small-cap and BSE Mid-cap has outperformed the large-cap index represented by BSE 100. The best return is generated by Small-cap index, which is almost up by 5 per cent in the last one month, as compared to flat return by large-cap index.
The million-dollar question is whether this is going to be sustainable or is it going to be another false signal, especially after looking at the current geo-political tension that has a potential to derail the current rally.
We believe the current rally has a longevity. There are strong reasons to believe that this will continue.
Worst of economic growth is behind now
Denne historien er fra January 20, 2020 - February 02, 2020-utgaven av Dalal Street Investment Journal.
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Denne historien er fra January 20, 2020 - February 02, 2020-utgaven av Dalal Street Investment Journal.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
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.
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
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.
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.
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.
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
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.
❝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
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
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
