new Delhi. The stock market has seen a sharp decline in recent times. Even after the release of the economic package, the market has not gained any momentum. But if you want to avoid such a volatile market, then you should resort to the multicap category of mutual funds. This is because this category falls short compared to the market. On the other hand, when the market goes up, this category increases more than that.
Mutual fund category of mutual funds is suitable for all market cycles, as per the data of Arthaabha. Statistics show that the Nifty-500 has fallen by 2.29 percent in three years. Whereas the decline in multicap category during this period has been much less. Statistics show that in the last three years, the schemes of major mutual funds in the multicap category have fallen significantly. During this period, the Mahindra Growth Scheme has given a return of 0.2 percent in three years. However, many other funds have performed disappointingly during this period. Franklin India Focused Equity Fund has reported a loss of 3.7 percent.
Similarly, DSP Focus Fund has reported a loss of 2.8 percent in the same period. While Edelweiss Multi-Cap Fund has lost one percent. IDFC Focused Equity Fund has lost 1 percent while Union Multi Cap Fund has lost 0.9 percent. PGIM India made a loss of 0.4 percent. The Mahindra Edge plan has been ranked fourth in another 3 years.
According to analysts, the volatility of the equity market is very uncertain. However, if one wants to invest for a long period, then one should focus on schemes of equity oriented mutual funds. Because equity-oriented mutual funds play an important role in building wealth over the long term. Mid-cap funds usually identify high quality businesses and invest in their stocks. These funds focus on growth oriented companies.
Ashutosh Bishnoi, MD and CEO of Mahindra Mutual Fund, says the portfolio of companies is identified with a lot of research. Only those companies are included in the portfolio, which have a high probability of strong cash flow in the business, and have the potential to grow further. Companies that have the ability to make more profit than their competitors. Companies that can stay in their business for long. Companies that do not require external capital for growth. Shares of such companies are often available at high valuations. Nevertheless, there is a better chance of higher returns.
This post was published on May 29, 2020 2:31 am
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