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Tough Times
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Srikanth Meenakshi
Greetings from FundsIndia! It has been habitual for us to close this lead article in our monthly newsletter with a signoff that says 'Happy Investing!'. However, investing has not been a happy endeavor over the past few weeks/months. There is turmoil all around us - weaker rupee, costlier petrol, rising prices, stagnating growth rate - and this is just the domestic scene. Overseas, the dragging troubles of Europe is doing a slow burn on the global economy. Even US economy which looked promising a few months ago, is showing signs of faltering. With all these happening, investing, especially in the equity markets has been anything but fun. From what we see, read and hear, it does appear that this pain will sustain at least over the near term. I had a chat in this regard with my friend and fellow financial advisor Rajaraman Kumbeswaran in Chennai and asked him what he is recommending to his clients. His advice was that given the potential downside left in the market, it would be prudent to avoid large lump sum investments in the equity market. He is asking his clients to park any surplus money in liquid or short term debt funds but to keep on continuing their SIP investments.
I thought that was sound advice and I'm happy to pass it on. On a different note, I hope FundsIndia account holders got an opportunity to try out the Morningstar portfolio x-ray reports that we have launched. It is a very useful tool that provides a report (in one click) for any of your portfolio with detailed information about all your holdings, their performances, stock overlap etc. Please give it a spin if you have not already done so. Also, I hope you noticed that we have shifted premises in Chennai. FundsIndia is now in a larger and (slightly) nicer office premise in Nungambakkam in the heart of the city where financial services firms traditionally place themselves. We are happy and proud to join this fraternity geographically. Once we spruce up the place a bit, we'll share some photographs as well :-) Please note our new address in our 'Contact us' page and direct all communications there. Our phone numbers remain the same.
Disclaimer: Mutual Fund Investments are subject to market risks. Please read all scheme related documents carefully before investing.
Volume 4, Issue 6
Page 2
We recommend taking profits / reducing exposure to Bata India and Jubilant FoodWorks. Both the stocks have been outperformers this year. A look at the chart patterns indicates that these stocks are ripe for a correction. Those holding these stocks may take some profits. As highlighted in the chart, the series of negative divergence between the price action and the 14-day Relative Strength Index (RSI) is a sign of waning upside momentum. While the stock has made new highs, the 14-day RSI has been unable to do so, which is forewarning of an impending correction. Unless the stock does a quick sprint past the resistance at Rs.900, it would be reasonable to expect a fall to the immediate support at Rs.730. Shareholders may use any rally to reduce exposure while those willing to take risk may consider short position with a stop loss at Rs.905, for a target of Rs.730.
Jubilant FoodWorks runs the Dominos Pizza franchisee in the country. Similar to Bata, this stock too has been an out performer in relation to the benchmark indices. The recent chart pattern however suggests that the stock could get into a downside correction.
Disclaimer: Mutual Fund Investments are subject to market risks. Please read all scheme related documents carefully before investing.
Volume 4, Issue 6
Page 3
Consistent Performers
FundsIndia Research
In this page, we feature mutual fund schemes in popular categories that have stood the test of time and delivered performance consistently. These schemes have consistently featured in the top quartile of their category in terms of performance over multiple time periods in the past. For equity funds and income funds, we have chosen three, five and seven year time periods for such ranking. For short term and ultra-short term funds, we have chosen shorter time frames. Please note that in some cases, we have pruned the list for length - we have removed institutional schemes and those that have very high initial investment amounts (in the debt side) from this list. This list will be updated every month, although we do not anticipate significant changes on a month-on-month basis. Rankings data for this report has been sourced from Value Research Online.
Fund Name
Average
VRO Rating
Franklin India Bluechip DSPBR Top 100 Equity Reg ICICI Prudential Top 100 SBI Magnum Equity HDFC Index Sensex Plus
Disclaimer: Mutual Fund Investments are subject to market risks. Please read all scheme related documents carefully before investing.
Volume 4, Issue 6
Page 4
Fund Name
Average
VRO Rating
Fund Name
Average
VRO Rating
Multi Cap
3-Y Return 5-Y Return 7-Y Return (%) 3-Y Rank (%) 5-Y Rank (%) 7-Y Rank
Fund Name
Average
VRO Rating
HDFC Equity
12.51
5/34
8.46
4/29
19.02
2/18
13.20% YYYYY
Hybrid: Equity-oriented
3-Y Return 5-Y Return 7-Y Return (%) 3-Y Rank (%) 5-Y Rank (%) 7-Y Rank
Fund Name
Average
VRO Rating
9.52%
YYYY
Tax Planning
3-Y Return (%) 3-Y Rank 5-Y Return (%) 5-Y Rank 7-Y Return (%) 7-Y Rank Average
Fund Name
VRO Rating
12.31 12.35
8/35 7/35
11.48 8.13
1/28 5/28
20.03 16.07
1/19 3/19
Disclaimer: Mutual Fund Investments are subject to market risks. Please read all scheme related documents carefully before investing.
Volume 4, Issue 6
Page 5
HDFC Floating Rate Income LT Tata Fixed Income Portfolio Scheme A3 Reg Tata Fixed Income Portfolio Scheme C2 Reg SBI Magnum Floating Rate Savings Plus Bond Peerless Short Term JM Money Manager Reg Templeton India Low Duration SBI Magnum Floating Rate LT Retail JM Money Manager Super Birla Sun Life Short Term Opportunities Ret JM Money Manager Super Plus Birla Sun Life Floating Rate LT Ret Debt Income
Fund Name
2.95
2/180
5.38 5.63 5.16 5.25 5.23 5.25 5.13 5.24 5.22 5.13 5.21 5.1
6/179 5/179 23/179 13/179 16/179 14/179 32/179 15/179 18/179 31/179 20/179 36/179
10.7
7/177
2.81%
10.4 10/177 10.13 24/177 10.15 23/177 10.82 4/177 10.35 14/177 10.19 18/177 10.16 22/177 10.29 16/177 9.99 42/177 10.11 28/177 9.98 43/177
2.8 16/180 2.71 40/180 2.72 36/180 2.78 20/180 2.72 37/180 2.7 41/180 2.9 6/180
9.72% YYYYY 11.14% YYYYY 11.91% YYYYY 13.05% Unrated YYY 13.96% YYYYY 13.79% 14.79% 16.22% 22.76% YY YYYY YYYY
3-M Return 6-M Return 1-Y Return (%) 3-M Rank (%) 6-M Rank (%) 1-Y Rank
Average
VRO Rating
Kotak Bond Deposit Kotak Bond Regular IDFC Dynamic Bond Plan B
Disclaimer: Mutual Fund Investments are subject to market risks. Please read all scheme related documents carefully before investing.
Volume 4, Issue 6
Page 6
Wealth India Financial Services Pvt. Ltd., H.M Center, Second Floor, 29, Nungambakkam High Road, Nungambakkam, Chennai - 600 034.
Disclaimer: Mutual Fund Investments are subject to market risks. Please read all scheme related documents carefully before investing.