INSUBCONTINENT EXCLUSIVE:
What would you do if you are unable to fathom what is going on in the stock market with so many macroeconomic distress at play
Do nothing
and stay put in the systematic investment plan (SIP) of mutual funds that you may be having
If you do not have it, go for one, say market veterans.
But if somehow had you accidentally drifted into a smallcap fund and that is
bleeding now, redeem and go on a holiday.
Data shows mutual fund SIPs can hold you in good stead amid such headwinds
On an average, smallcap, midcap, technology, tax-saving, multicap, infrastructure and FMCG-oriented funds have delivered annualised return
of between 16 per cent and 30 per cent over the past five years.
For instance, a monthly SIP of Rs 1,000 in Escorts High Yield Equity Fund
since May 2015 would have now become Rs 45,513
Mirae Asset Emerging Bluechip Fund would have turned the same amount into Rs 49,126 at present
People accumulating savings should just keep calm and carry on
Do nothing, just carry on with your SIP, advises Dhirendra Kumar, CEO, Value Research, a mutual fund research outfit.
SIP is a great vehicle
over 1 per cent in last three sessions on rising crude oil prices and a falling rupee
and falling rupee are impacting the market right now
There is still a lot of value creation waiting to happen in the midcap space
accidentally drifted into smallcap funds and made money and you are witnessing a decline in the value of your investment, take your money
In the smallcap space, he likes DSP BlackRock Small Cap Fund, Reliance Small Cap and SBI Small Cap Fund.
Multiple ratio breakdowns make this
market a minefield23 May, 2018Ratio breakdowns have a lot of relevance
In the past, such breakdowns in Metals-to-Nifty ratio in 2014, Pharma-to-Nifty ratio in 2016, Auto-to-Nifty ratio in 2014 and now the
IT-to-Nifty ratio -- all of them have transformed into medium-term trends
Elara Capital looks at more such breakdowns to tell you where to go and where no to.BSE Midcap-to-Nifty ratio: Breaks four years of
uptrend23 May, 2018Post 2014, midcap-to-Nifty ratio broke out of a decade cycle downtrend on the back of midcap chasing
The ratio has been following this uptrend for the past four years
We saw two large setbacks in midcaps over 2016-17, but this trendline has held well.NSE Midcap-to-Nifty ratio: Breaking key trendline23 May,
2018Since 2014, midcaps have seen three large round of corrections during January 2016, November 2016 and May 2017)
In all three rounds, the retracement in Midcap-to-Nifty ratio from the highs in the range of 6-8%
uptrend cracked23 May, 20182014-15 was a largecap market, 2015-16 was a midcap market and 2016-17 was smallcap market
This breakdown holds importance as we had seen big crowding in the side markets in 2017 post demonetization.NSE Smallcap-to-Nifty ratio:
Breaks down23 May, 2018One full cycle of shift into smaller names seems to have been played by the markets for now
