Equity Fund: Equity mutual funds are better in an environment of uncertainty, know what experts say


Posted on 25th Jul 2022 03:17 pm by rohit kumar

The stock market has been completely volatile in the last seven months of this entire year. Instead of profit, investors have got losses. However, uncertainty is still expected to remain in the market. In such a situation, Ajit Singh\'s report explains the mathematics of investing in equity mutual funds.

 

 

Shekhar Rai, Director, WealthDirect, says, \"If an investor follows some fundamentals while investing, he can make good profits in the ups and downs of the market. There is an atmosphere of uncertainty at this time. In such a situation, equity mutual funds can prove to be a better strategy. Usually, investors sell their investments in the downfall of the market. Whereas on the contrary, they should make a decision. Whatever the market conditions, financial goals can be difficult to reach if fundamentals are sidelined. So with discipline, you should diversify assets. That is, the investment of Rs 100 should be invested in many places. This will not only give you balanced profits but also provide stable returns.

 

 

Diversification is an essential part

 

Investing in multiple locations is an essential part of any investment. By investing in different asset classes, an investor can be assured that his portfolio will not be adversely affected even in a volatile market. At first, some investors even accomplish it, but it is always a challenge for them to follow it. It is very important to deal with this.

 

go the mutual fund route

 

Fund houses come up with such a scheme to meet the challenges of diversification. This Asset Allocator has proved to be a better scheme. Looking at its returns, ICICI Prudential has given an option to invest through the Fund of Funds structure. Which gave good returns. It invests in the model of in-house valuation.

 

BSE  returns 1.41 percent

 

Looking at the one-year returns till July 13, according to Value Research, the BSE  has given a return of only 1.41 percent. Mutual fund schemes have given returns of 14 to 20 percent in the same period. MNC fund has given a profit of 7 percent. Whereas Value Discovery Fund has given a return of 10.52 percent. Dividend Yield Equity Fund\'s return has been 10.75 percent during the same period.

 

follow strategy

 

Experts believe that mutual fund houses stick to their strategy despite the changing market conditions. They focus on keeping the investment safe in a downtrend. Their investment team follows a consistent investment process. In an environment of large-scale volatility, they favor schemes whose portfolio is easy to operate.

 

Medium to long-term outlook positive

 

Our outlook on equities remains positive in the medium to long term, says investment expert S Naren. We recommend SIP and STP for investment. We suggest investing in schemes that follow diversification to reduce volatility in the near term. We are in favor of investing in sectors like Auto, Banks, and Capital Goods. However, at present, many sectors like metals are at high valuations.

 

fund scheme one-year return

Large and mid-cap 11.50 percent

India Opportunities Fund 12.42 percent

Equity and Debt Funds 14.21 percent

Multi-Asset Fund 14.87%

FMCG Fund 20.12 percent

 

Anytime retail investors should go the mutual fund route instead of investing directly in the market. This reduces the risk of your investment. Also, it gives a good advantage compared to the benchmark. Because the fund house has long-term investment experience. Also, they keep an eye on every situation.

 

Also Read: E-Cars: 75 percent of the vehicles sold in the country will be e-cars, and new jobs will be created

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