Wednesday, July 6, 2022
Market-Reporter
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate
No Result
View All Result
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate
No Result
View All Result
Market-Reporter
No Result
View All Result
Home Mutual Funds

Your Queries (Mutual Funds): Continue with your fund if it has outperformed its category peers

MtR by MtR
June 9, 2021
in Mutual Funds
0
Your Queries (Mutual Funds): Continue with your fund if it has outperformed its category peers


As equity markets are highly volatile, stagger your equity allocation over next 1-4 months to benefit in case of any short-term correction in the markets.As equity markets are highly volatile, stagger your equity allocation over next 1-4 months to benefit in case of any short-term correction in the markets.

I have been investing in a large-cap equity fund SIP of Rs 10,000 since June 2017. I have invested `4.6 lakh and the current value is Rs 6.19 lakh. Is the return generated fine to continue with the fund for another five years?
—Puneet Anand
Based on your invested monthly corpus and the current value, the fund has generated an annualised return of 14.50% (June 01, 2017 till May 26, 2021) which features in the top quartile among the large-cap peers for the said period. The fund has outperformed most of its peers (average is 10.84%) and has also outperformed the large-cap benchmark (S&P BSE 100 TR Index) which delivered 13.33% during this period.

Related articles

Mutual Fund Window Open, but Not Much Going Through

July 6, 2022

How investors can avoid violating ‘wash sale rules’ when realizing tax losses

July 5, 2022

Hence, you can continue to remain invested in your fund. Always evaluate a fund in context of overall port-folio, with respect to the diversification it offers in terms of investment style (growth/value/blend), exposure to different market cap segments (large /mid/small-caps) and geography (domestic/international markets). You should evaluate the performance of the funds in your portfolio vis-à-vis that of their respective category peers. If a fund has been delivering below-average performance consistently over long periods, you may switch to a more consistent one.

I want to invest in a multi-cap fund for a horizon of three years. What kind of returns can I expect?
—R K Dave
Though equity is more volatile than most asset classes with even possibility of a capital loss over the short-term, the risk of capital loss diminishes as holding period increases. Over long horizons (10+ years), equities can deliver around 4-5% over the long-run inflation rate. Valuations play a defining role while entering any asset class / security. Lower (cheaper) valuations reduce the risk of drawdowns and improve upside potential. However, investors should follow an asset allocation based approach for portfolio construction, as it is one of the key determinants of the portfolio’s performance.

Ideally one should invest into equities for a horizon of at least 5 years. Given your horizon is very short (3 years), you should restrict your equity allocation in line with your risk appetite. As equity markets are highly volatile, stagger your equity allocation over next 1-4 months to benefit in case of any short-term correction in the markets.

The writer is director, Investment Advisory, Morningstar Investment Adviser (India). Send your queries to fepersonalfinance@expressindia.com

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.





Source link

Related Posts

Mutual Fund Window Open, but Not Much Going Through

by MtR
July 6, 2022
0

Market declines and a bumpy rollout of new account features have kept usage of the new mutual fund window down....

How investors can avoid violating ‘wash sale rules’ when realizing tax losses

by MtR
July 5, 2022
0

John Lund | Blend Images | Getty ImagesThe end of June marked the worst first six months of a year...

How to buy a carbon-conscious fund in wake of Supreme Court EPA ruling

by MtR
July 5, 2022
0

The Supreme Court last week limited the Environmental Protection Agency's ability to regulate greenhouse gas emissions to fight climate change...

10 documents you need to file IT return – Form-16 – Economic Times

by MtR
July 5, 2022
0

10 documents you need to file IT return - Form-16  Economic Times Source link

Mutual funds to create Rs 5 crore in 15 years

by MtR
July 5, 2022
0

I am 34 years old. I am a new mutual fund investor. My goal is to have a lumpsum amount...

Load More
  • Trending
  • Comments
  • Latest

Bank of England tells ministers to intervene on digital currency ‘programming’

June 21, 2021

Tips for checking smoke alarms during daylight saving time

March 12, 2022

GLOBAL MARKETS-U.S. stocks follow Europe up; Treasury yields rise, dollar firm

July 9, 2021
Fed tapering and emerging markets

Fed tapering and emerging markets

June 7, 2021
African currencies week ahead: Zambia's kwacha seen on back foot, Kenyan shilling up – Business Recorder

African currencies week ahead: Zambia's kwacha seen on back foot, Kenyan shilling up – Business Recorder

0
Maxum Foods releases Global Dairy Commodity Update for June

Maxum Foods releases Global Dairy Commodity Update for June

0
Letter: Perpetual bonds can help states fight hunger

Letter: Perpetual bonds can help states fight hunger

0
United Kingdom ETFs Are Riding the Re-Opening Momentum

United Kingdom ETFs Are Riding the Re-Opening Momentum

0

ETF investors reduce credit risk as recession fears spike

July 6, 2022

Bonds and ETFs find favour on NZX in June

July 6, 2022

RBA rate lift causes shift in commodity prices

July 6, 2022

A poor country made bitcoin a national currency, the bet isn’t paying off

July 6, 2022

Recent News

ETF investors reduce credit risk as recession fears spike

July 6, 2022

Bonds and ETFs find favour on NZX in June

July 6, 2022

RBA rate lift causes shift in commodity prices

July 6, 2022

Categories

  • Asia
  • Bonds
  • Canada
  • Commodities
  • Cryptocurrencies
  • Currencies
  • Emerging Markets
  • ETFs
  • Europe & Middle East
  • IPOs
  • Latin America
  • Mutual Funds
  • Personal Finance
  • Real Estate
  • Retirement
  • Spending & Saving
  • Stocks
  • U.S. Markets
  • Privacy & Policy
  • About Us
  • Contact Us
  • Advertise with us

© 2021 Copyright Market-Reporter

No Result
View All Result
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate

© 2021 Copyright Market-Reporter