Commentary:
1. All types of mutual funds had a positive return both for the week and the month, resulting in one of the best weeks for the mutual funds in general.
2. Bottom 50 funds analysis is focused on only equity funds going forward, from this report as the leverage is more with such a focus.
3. Looking at the Monthly Top 50 equity funds, top fund returned an annual return of record 147.04%, thanks to the defence stocks returns.
4. The funds marked in green are the ones having above average returns from timelines 1M thru 1Y, definitely investment worthy ones.
5. Because the funds at the top of the list had significant gain, the averages moved up, hence the funds in green are a few inspite of a great week.
6. Therefore, one would get more investment worthy ones if willing to losen the tough benchmark imposed here, which is to have above average returns across 1M thru 1Y. For example: LIC MF Small Cap Fund, Canara Robeco Infrastructure Fund.
7. Analysis of the Monthly Bottom 50 equity funds is to appreciate as to which funds are way underperforming against the general trend.
8. The returns below the average are marked in red, and those funds having below average return across all timelines from 1M thru 1Y are marked in Red.
9. When one focuses on certain thematic funds, need to stay off such underperformances, simply by selling off, as there is so much opportunity to go behind the winners.
11. Again, one may find many other funds than the one in green if compromise on the tough rule applied here. For example: CPSE ETF, SBI Psu Fund
12. The caution stated through the last two weeks reports on the monthly bottom 50 worked out. Many of the annual Top 50 leaders were stuck in the Monthly Bottom 50, and as anticipated, all of them have come out of monthly bottom 50. Further, some of them even made it to the Monthly Top 50 this time. So, the lesson is not to fall for the flash in the pan performance, whether it is bullish or bearish. At least a month level consideration is a must, even for the underperformers. But, this analysis takes much tougher stand, which is to highlight consistent superior performance across all timelines from 1M thru 1Y, which makes sense when one has limited money to invest and has more than a dozen choices through every weekly analysis report.
13. Looking at the Annual Bottom 50 equity funds, the returns above the bottom average are are marked in bold Navy Blue. The purpose is to appreciate which of the bottom 50 may be attempting to buck the down trend. The funds having above average returns within bottom 50 are also marked in Navy Blue Bold. If you are stuck with some of these funds, better give some more time before selling off to see whether they can recover better ahead.
14. Looking at the Hybrid Top 50, both across Monthly and Annually, the funds with above average returns for all timelines from 1M thru 1Y are marked in green.
15. The commodity funds had a recovery thru this week. Need to see whether this is kind of a dead cat bounce given significant corrections through last one month or so. Global realities around commodities dint change much except for the crude prices going up, which might have flared inflation fears a bit, hence benefit to the gold and silver prices too. Further, there has been a setback for the current US president on the first presidential candidate debate, which might have sent some uncertainity for the US market, which typically flares up inflation fears a bit. Need to see, whether commodities are worthy of reinvestment ahead, but I personally stay off as I have better risk adjusted returns through Indian equity funds. For a short while I did consider commodity funds when the equity funds were bit lagging, from March thru April 2024, till the election results in the first week of May 2024.
16. Also note that the Indian commodity funds focus only on Gold and Silver, and nothing else, which I wonder why. While the India has a full fledged commodity exchange (eg. MCX), wonder why there is no foray into various commodity funds, especially the ones more relevant to the India realities like Agri commodities, ferrous metals, aluminium, crude etc. I am noting this here, as a mind trigger sent as a wave towards further reform in the Indian mutual funds market. For now, my assumption is that it is the typical lethargy or apathy or inertia of the regulator body and therefore the Industry in general, and I may be wrong.
Disclaimer:
- This is not a solicitation for mutual fund investment nor an advice. It is only an insight to help investment decisions based on the free MF performance data downloaded from Value Research. Investment decisions are only yours to make.
- Mutual fund investments are subjected to market risk. Read the propsectus of a mutual fund for all the risk information associated prior to investment.
- The author can not be responsible for the ommissions or errors in the data from Value Research or the data processing errors if any by the author.
- All your investment decisions need to be based on your decision finally, with no blame to anyone else later.
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