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A new beginning - continues

Hello everyone, welcome back to another post in which we will continue discussing the right way to get the maximum profit from the fund which are in loss.

As i said in earlier post go for the selective decision, do not rush to book profit or loss. Its seems that many of large cap fund are performing well, and also the samll cap or mid cap funds which are discounted are having a option to accumulate at low prices.


The major reason of loss in funds are like wrong entry timing, irregular investment pattern, selection of wrong category of funds etc. As you also can notice i am focusing on funds who are in loss........ Why???????

The main reason is that the price of majority of small and mid cap funds are down and still some funds whoes stock selection is best are having a chance of getting double digits profit. In my first post of what is mutual fund i have explained the benefit of average in mutual fund.

Also to make a note that its a fudn with proper and analysed stock selection will definately give the return, so just make sure to select best funds instead of funds who are giving profit because the best fund manager will survive in all the ups and downs.

So make selection wisely and decide whether to continue amd wait the fund whose return in negative right now.

Also if you are new in the market and can't decide which fund is best. Just try to compare the return of funds with the benchmark also make sure to compare for minimum 5 years return, i know i can argue that those are past return and cant be taken for comparison but remember i am here trying to explain you to compare the performance of fund for the longer period so we can take out of it that whether fund manager is able to tackle the ups and downs or not. If fund is able to maintain the good return over a period of time it shows that the fund manager is having selection of good stock who can survive the volatility of market. So go choose wisely and hold with the good funds.

Happy investing.

Comments

  1. It is really quality & outstanding post. keep it up!

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