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Time of India
16-06-2025
- Business
- Time of India
Nifty stuck in narrow range. Here's the mutual fund move you need to make now
With the Nifty 50 trading in a narrow range, mutual fund experts advise investors to stay the course and continue their SIPs as planned, emphasising that market volatility is a natural part of investing and should not prompt attempts to time the market. 'Investors should continue the SIPs as per the usual plan. Volatility is an inherent feature of markets. During a correction, SIPs work well as they average out the costs. So, if an investor puts their SIP on hold at the cost-averaging stage, they might miss the rebound if it happens soon after,' Rajesh Minocha, a Certified Financial Planner (CFP), Founder of Financial Radiance, shared with ETMutualFunds. Also Read | HDFC Defence Fund adds Bharat Forge and Bharat Dynamics in its portfolio in May Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo Another expert shares similar advice that investors avoid market timing risk and should continue with their ongoing SIPs. 'SIPs help investors avoid market timing risk by investing at pre-determined intervals. Investors should continue with their SIPs and avoid trying to time the markets, as more often than not, it is counterproductive to portfolio outcomes,' Kaustubh Belapurkar, Director – Manager Research, Morningstar Investment Research, told ETMutualFunds. On Friday, the benchmark index Nifty50 closed at 24,888, tracking sharp losses in Asian markets after Israel launched military strikes on Iran , escalating geopolitical tensions in the oil-rich Middle East. Nifty50 touched its 52-week high level on September 27, 2024, of 26,277 and is currently down by nearly 6% from its 52-week high level. Live Events For the passing week, Ajit Mishra – SVP, Research, Religare Broking shared that markets remained under pressure and declined by over a per cent during the week, weighed down by rising geopolitical tensions and mixed global cues. 'After starting the week on a subdued note, indices gradually drifted lower amid increased volatility and finally settled near the week's low,' he added. Amid the ongoing geopolitical volatility due to Israel-Iran tensions and others, the two experts recommend that investors who are waiting to start fresh investments now can go for SIP or STP, and a disciplined asset allocation approach helps to tide the market volatility. 'SIPs are the best way to invest, instead of waiting on the sidelines trying to time the market. Following a disciplined asset allocation approach combined with regular investing through SIPs helps tide over market volatility to achieve desired portfolio outcomes,' Kaustubh advises. Also Read | ITC and BSE among stocks that mutual fund bought and sold in May On the other hand, with a similar opinion, Minocha adds that a lump sum is preferable only when one has a long-term horizon and a high risk appetite. 'For fresh money, investors should do STP or staggered SIPs to spread out risk. Lump sum is preferable only when you have a long-term horizon and a high risk appetite. Many times, waiting for the perfect opportunity leads to missed opportunities,' Minocha recommends. There are many different equity mutual fund options available to invest in, each serving a different purpose. While recommending which mutual fund categories are better suited for volatile markets, Minocha recommends that large-cap index funds and dynamic asset allocation funds do well during volatile market phases. 'Gold or Gold ETFs are also a hedge whenever there are geopolitical threats like the Israel-Iran conflict. Though for long-term holdings, diversified equity funds tend to do better,' he added. Many market experts believe that gold is considered a hedge against inflation, and with global economic conditions remaining uncertain, gold is expected to retain its appeal as a hedge against market instability. Kaustubh from Morningstar Investment Research recommends that investors should follow a disciplined asset allocation approach, which is driven by the investors risk return objectives and investment time horizon, as this drives the intended portfolio allocation across asset classes, including gold. And he believes that gold works as a good risk diversifier in a portfolio, as gold prices tend to display low correlation with other asset class price movements. Debt mutual funds are expected to offer portfolio stability amid market volatility, while international funds provide exposure to diverse global markets, commodities, and foreign indices. Ultimately, the performance of these schemes depends on the specific geographies in which your money is invested. Also Read | Explained: What all Gen-Z should know about mutual funds When asked whether investors should opt for debt mutual funds amid market volatility or consider international diversification, the expert from Morningstar Investment Research advised that debt funds should be chosen only if they align with an investor's asset allocation strategy. As for international exposure, it can enhance diversification and be added to a portfolio at any time. Sharing a slightly different opinion on this, Minocha says that short to medium-term debt funds or arbitrage funds are safer if investors need the money within a time horizon of less than three years. However, for diversification, one can consider building gradual exposure to international funds, although India remains strong on long-term fundamentals. Unfortunately, the mutual fund route is still not available for international funds, he added. One should always invest based on their risk appetite, investment horizon, and goals. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ alongwith your age, risk profile, and Twitter handle.
Economic Times
16-06-2025
- Business
- Economic Times
Nifty stuck in narrow range. Here's the mutual fund move you need to make now
Experts urge investors to stay disciplined with SIPs amid market volatility and geopolitical tensions. With the Nifty 50 trading in a narrow range, mutual fund experts advise investors to stay the course and continue their SIPs as planned, emphasising that market volatility is a natural part of investing and should not prompt attempts to time the market. 'Investors should continue the SIPs as per the usual plan. Volatility is an inherent feature of markets. During a correction, SIPs work well as they average out the costs. So, if an investor puts their SIP on hold at the cost-averaging stage, they might miss the rebound if it happens soon after,' Rajesh Minocha, a Certified Financial Planner (CFP), Founder of Financial Radiance, shared with ETMutualFunds. Also Read | HDFC Defence Fund adds Bharat Forge and Bharat Dynamics in its portfolio in May Another expert shares similar advice that investors avoid market timing risk and should continue with their ongoing SIPs. 'SIPs help investors avoid market timing risk by investing at pre-determined intervals. Investors should continue with their SIPs and avoid trying to time the markets, as more often than not, it is counterproductive to portfolio outcomes,' Kaustubh Belapurkar, Director – Manager Research, Morningstar Investment Research, told ETMutualFunds. On Friday, the benchmark index Nifty50 closed at 24,888, tracking sharp losses in Asian markets after Israel launched military strikes on Iran, escalating geopolitical tensions in the oil-rich Middle East. Nifty50 touched its 52-week high level on September 27, 2024, of 26,277 and is currently down by nearly 6% from its 52-week high level. For the passing week, Ajit Mishra – SVP, Research, Religare Broking shared that markets remained under pressure and declined by over a per cent during the week, weighed down by rising geopolitical tensions and mixed global cues. 'After starting the week on a subdued note, indices gradually drifted lower amid increased volatility and finally settled near the week's low,' he added. Amid the ongoing geopolitical volatility due to Israel-Iran tensions and others, the two experts recommend that investors who are waiting to start fresh investments now can go for SIP or STP, and a disciplined asset allocation approach helps to tide the market volatility. 'SIPs are the best way to invest, instead of waiting on the sidelines trying to time the market. Following a disciplined asset allocation approach combined with regular investing through SIPs helps tide over market volatility to achieve desired portfolio outcomes,' Kaustubh advises. Also Read | ITC and BSE among stocks that mutual fund bought and sold in May On the other hand, with a similar opinion, Minocha adds that a lump sum is preferable only when one has a long-term horizon and a high risk appetite.'For fresh money, investors should do STP or staggered SIPs to spread out risk. Lump sum is preferable only when you have a long-term horizon and a high risk appetite. Many times, waiting for the perfect opportunity leads to missed opportunities,' Minocha recommends. There are many different equity mutual fund options available to invest in, each serving a different purpose. While recommending which mutual fund categories are better suited for volatile markets, Minocha recommends that large-cap index funds and dynamic asset allocation funds do well during volatile market phases. 'Gold or Gold ETFs are also a hedge whenever there are geopolitical threats like the Israel-Iran conflict. Though for long-term holdings, diversified equity funds tend to do better,' he added. Many market experts believe that gold is considered a hedge against inflation, and with global economic conditions remaining uncertain, gold is expected to retain its appeal as a hedge against market from Morningstar Investment Research recommends that investors should follow a disciplined asset allocation approach, which is driven by the investors risk return objectives and investment time horizon, as this drives the intended portfolio allocation across asset classes, including gold. And he believes that gold works as a good risk diversifier in a portfolio, as gold prices tend to display low correlation with other asset class price movements. Debt mutual funds are expected to offer portfolio stability amid market volatility, while international funds provide exposure to diverse global markets, commodities, and foreign indices. Ultimately, the performance of these schemes depends on the specific geographies in which your money is invested. Also Read | Explained: What all Gen-Z should know about mutual funds When asked whether investors should opt for debt mutual funds amid market volatility or consider international diversification, the expert from Morningstar Investment Research advised that debt funds should be chosen only if they align with an investor's asset allocation strategy. As for international exposure, it can enhance diversification and be added to a portfolio at any a slightly different opinion on this, Minocha says that short to medium-term debt funds or arbitrage funds are safer if investors need the money within a time horizon of less than three years. However, for diversification, one can consider building gradual exposure to international funds, although India remains strong on long-term fundamentals. Unfortunately, the mutual fund route is still not available for international funds, he should always invest based on their risk appetite, investment horizon, and goals. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ alongwith your age, risk profile, and Twitter handle.
Time of India
11-06-2025
- Business
- Time of India
Largecap mutual funds see over 50% decline in May inflows. Profit booking or shift in investor preference?
With largecap mutual funds seeing a drop of over 50% in monthly inflows during May 2025, an experts attribute the decline to profit-taking and a shift toward higher-yielding categories. Investors, they say, often chase recent outperformers rather than adhering to a disciplined, goal-based asset allocation strategy. 'The recent stronger returns in mid and small-cap funds may have induced many investors to reallocate in pursuit of higher gains, and their portfolios may have consequently been diverted from their original risk-return profiles,' Rajesh Minocha, a Certified Financial Planner (CFP), Founder of Financial Radiance, shared with ETMutualFunds. Also Read | Midcap and smallcap mutual funds witness decline in inflows. Are investors shifting focus? Play Video Play Skip Backward Skip Forward Mute Current Time 0:00 / Duration 0:00 Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Belly Fat Removal Without Surgery in Algeria: The Price Might Surprise You Belly Fat Removal | Search Ads Get Info Undo Another expert is of a similar opinion that this tactical shift is for higher growth by choosing riskier categories. 'The sharp decline suggests a tactical shift among investors toward higher-growth, though riskier, segments like mid and small caps. It also reflects some degree of profit booking , as large-cap indices had already seen a considerable run-up in the months prior,' said Himanshu Srivastava – Associate Director- Manager Research, Morningstar Investment Research India. Live Events In May, large cap funds received total inflows of Rs 1,250 crore against an inflow of Rs 2,671 crore in April, witnessing a decline of nearly 53% on a monthly basis. Yearly, these funds saw a growth of 89% from an inflow of Rs 663 crore in May 2024. As the data reflects a change in investors' preference, the important thing to know is whether it is the correct time to invest in these funds amid the market volatility. According to Minocha, large-cap funds stabilise a portfolio as these funds, even if the volatility for many can be considered low, fit those with medium-risk appetite, but the exact allocation must depend on the individual's goals, time horizon, and risk tolerance. 'Large-cap exposure is a must for every investor. Investors also may look at categories like flexi-cap and large & mid-cap funds, if duly aware of the fund manager's style, in terms of his allocation towards large caps and, to what extent there is participation in mid-cap and small-cap space for generating alpha ,' Minocha further shared with ETMutualFunds. Also Read | Nifty Bank hits 57,000. Is it time for mutual fund investors to bet on banking funds? Largecap funds delivered an average return of 2.22% in May. Among the 33 funds in the category in the said period, Quant Large Cap Fund gave the highest return of around 4% in May, followed by ITI Large Cap Fund, which gave a 3.99% return in the same period. HDFC Large Cap Fund gave the lowest positive return of around 0.95% in the mentioned period. Samco Large Cap Fund was the only fund to deliver negative returns in the mentioned period. The fund lost 0.20% in May. On the other hand, midcap and smallcap funds gave an average return of 5.92% and 8.20% respectively in May, which was slightly higher than the one offered by largecap funds. Midcap funds and smallcap funds received an inflow of Rs 2,808 crore and Rs 3,214 crore, respectively, in May. These funds witnessed a smaller decline on a monthly basis compared to largecap funds. The midcap and smallcap funds witnessed a decline of 15% and 20% respectively on a monthly basis. As the largecap funds lag behind the mid and smallcap funds, Minocha mentions that as these funds invest in the top 100 market-cap companies technically provide long-term stability and resilience to any portfolio, which makes them relevant in the construction of a portfolio. 'Most active management large-cap funds have failed to beat their benchmarks in recent years. Hence, a passive alternative to consider would be Nifty 50, Nifty 100, or even a smart-beta approach (say equal weight or low-volatility indices) for a cost-effective and benchmark exposure,' Minocha shared the outlook of largecap funds with ETMutualFunds. Also Read | Parag Parikh Flexi Cap Fund adds Bharti Airtel and Nesco to its portfolio in May Large-cap funds invest at least 80% of their assets in a large-cap company, which is ranked from 1st to 100th on the Indian stock exchanges in terms of market capitalisation, with the flexibility to invest the balance 20% in other companies as per the discretion of the fund manager. If you are looking for recommendations, see: Best large cap mutual funds to invest in June 2025 ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ alongwith your age, risk profile, and Twitter handle.
Time of India
30-05-2025
- Business
- Time of India
New investors' dilemma: Is flexi cap fund alone sufficient to deploy Rs 10 lakh for meeting goals
Live Events A Reddit user recently sparked an engaging conversation in the mutual fund community, outlining their plan to begin investing with a Rs 10 lakh lump sum and monthly SIPs of Rs 50,000–Rs 80, a long-term horizon of 10 years and a high risk tolerance, the investor questioned the need for multiple fund types, wondering why a single flexi-cap mutual fund wouldn't suffice for Indian equity reached out to an expert to understand whether only a flexi cap mutual fund is enough or not for a portfolio and why do investors need other funds as well in their funds are designed to offer broad market exposure, giving the fund manager the discretion to shift between large, mid, and small caps as market conditions evolve. 'This flexibility makes them a suitable base for most portfolios. However, the drawbacks in relying exclusively on flexi-cap holdings are manager bias and potential for alpha,' said Rajesh Minocha, a Certified Financial Planner (CFP), Founder of Financial adds that one of the main drawbacks is the potential manager bias, where fund managers often allocate a large portion of the portfolio to large-cap stocks in order to minimize volatility which can lead to underexposure in high-growth mid and small-cap segments, especially during market phases where these segments if the time horizon is long (say 10+ years), making dedicated investments in mid and small-cap funds through SIPs can generate better returns if the investor can bear the higher volatility and asset allocation discipline is very important, Minocha said and also recommended that one should never go overboard on risky categories, so that some allocation lands into stable options such as large cap or flexi cap, which can be conveniently redeemed in emergencies without much the stock prices running high, investors are staying away from the market and looking for investment options where they can make investments and whether they should go for lumpsum or SIP investments in the volatile this concern of many investors and the reddit user having a lumpsum amount to deploy and further to start SIPs, Minocha recommends that putting the lump sum of Rs 10 lakh into the market all at once is not a good idea and should be staggered even for the long-term investor as this protects an investor from short-term volatility in the market and allows for averaging out the purchase further adds that in practice, one may park the lumpsum in a liquid or ultra-short duration debt fund while using a Systematic Transfer Plan (STP) to invest in equity mutual funds automatically over the next 6-10 months, balancing the risks of timing the market and capital deployment.'For the SIP portion, a diversified approach can mean balancing growth and risk. The core holding would be a flexi-cap, alongside a mid-cap fund for extra long-term growth potential. To a small degree, small-cap can be employed for alpha generation,' said should always make an investment decision based on investment horizon, risk appetite, and goals : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ alongwith your age, risk profile, and Twitter handle.
Time of India
26-05-2025
- Business
- Time of India
Nifty still below peak, but why are these mutual funds at record-high NAVs?
Despite benchmark indices Nifty 50 and BSE Sensex falling nearly 5% from their 52-week highs, several hybrid mutual funds have hit their own 52-week high NAVs. Mutual fund experts attribute this outperformance to two key factors: diversification across multiple asset classes and the relatively lower volatility of hybrid funds. 'The funds in the category of balanced advantage, dynamic asset, equity savings, and aggressive hybrid would have part of their portfolio in debt instruments, which provide stable returns and cushion the downside in a market downturn. When markets become volatile, as we are currently witnessing due to geopolitical and global financial headwinds, investors start to favour these categories as they are relatively less volatile than the Nifty and Sensex,' said Vishal Dhawan, CEO, Plan Ahead Wealth Advisors , a wealth management firm in Mumbai. Also Read | Explained: Why Alpha and Beta matter in mutual fund investing Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Senior : classement des meilleures mutuelles 2025 (dès 11,19€/mois) Meilleurtaux Undo 'This brings into sharp focus the importance of active stock-picking instead of just relying on the index for investment processes,' commented Rajesh Minocha, a Certified Financial Planner (CFP), Founder of Financial Radiance. An analysis by ETMutualFunds showed that many funds from arbitrage, aggressive hybrid, equity savings, balanced advantage, and dynamic asset allocation fund categories have recently hit their 52-week high NAVs, and some funds are behind by less than 1% from their 52-week high NAV Live Events A further analysis of these categories showed that there were around 66 schemes of which only one was large cap fund which has been in the market for nearly 1.29 years so it hit its 52-week high level. Aditya Birla SL Balanced Advantage Fund, which was at its 52-week high level on May 16 with a NAV of Rs 105.3300, is now trading at Rs 105.1500 down by 0.17% from the 52-week high NAV. Harish Krishnan, Co-CIO and Head Equity, Aditya Birla Sun Life AMC, said that asset allocation is about having a disciplined framework to book profits when everything seems to be going great for an asset class and to increase allocation when the margin of safety improves. 'ABSL BAF has navigated the last 6 months with agility and discipline- from 38% in mid-October 2024 to directional equity to around 70% by mid-March 2025, a period where pessimism was on the rise and conversely margin of safety improved. It is this dynamic asset allocation that helps protect the downside while participating in the eventual upside of markets,' he added. The funds that have reached their 52-week high level were on May 15, May 16, May 19, May 21, and May 23. Analysis of daily data of the benchmark indices showed that Nifty and Sensex went up on May 15, May 21, and May 23, whereas they dropped marginally on May 16. Some funds reached their 52-week high level when Nifty and Sensex hit their 52-week high level. Also Read | International mutual funds rally up to 12% in one month. Time to go global? If you're considering shifting your investments into these high-performing funds, Minocha cautions against chasing trends, noting that today's top performers could underperform tomorrow. He further recommends that investors should focus on those assets which are most appropriate for allocation given their objectives, risk appetites, and investment horizons and one should always go with an investment approach based on a goal-oriented perspective over the long term, which is far more beneficial than reacting to short-term returns. To this Dhawan adds in the current market scenario, where there are near to medium-term uncertainties regarding global trade policies and geopolitical tensions, volatility and the probability of a downturn in the equity market rise and these funds can be ideal for such an environment, and they are often recommended to investors who would have a moderate to low risk tolerance level. 'The primary objective of these categories is to provide a stable return by combining equity and debt together in different proportions. Arbitrage funds can be used for short-term investment purposes for high liquidity and emergency cash requirements. They can also be used to park money until there is a better investment opportunity to invest elsewhere,' he added. Investing in mutual funds near their 52-week highs carries risks such as limited upside potential, overvaluation, and increased chances of a market correction. These funds may reflect temporary performance driven by recent trends, leading to recency bias and unrealistic expectations. Commenting on the risk associated with investing in mutual funds that are near to their 52-week high level that one should be aware of, Dhawan mentions that investing in mutual funds that are near their 52-week high can present certain risks such as increased valuations and higher potential correction, active management risk, and market risk. Also Read | 10 equity mutual funds with NAVs above Rs 1,000 offer CAGR up to 24% since their inception 'After a sharp outperformance, there is always a probability of a market correction or a 'profit-booking' event, which can lead to drawdown or consolidation in the equity market. Since many of these funds have some exposure to equity, they could also correct. Additionally, past performance doesn't guarantee future results, and good fund managers can navigate through different market conditions, but their strategy, which drove the fund to a 52-week high, may not work going ahead,' he added. And lastly he adds that regardless of whether a fund is at its 52-week high or low, it's always subject to general market risk and factors like economic conditions, interest rate changes, geopolitical tensions, and overall market sentiment can impact the fund's performance. On the other hand, Minocha is of the opinion that 52-week highs should not be considered red flags to delay entry into a fund and as markets operate in cycles, these dynamics change with strategy, consistency, or one's financial goals. Investors need to understand the philosophy and the investment approach of a particular fund and see if it is aligned with their own thought process and then select investment categories and fund houses. One should always remember that equity funds suit long-term investors, while debt or hybrid funds are the alternatives for the shorter end, said Minocha. One should always choose a scheme based on risk appetite, investment horizon, and goals. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ alongwith your age, risk profile, and Twitter handle.
