Friday, August 9, 2024

Top 50 Mutual Funds Analysis as on Aug 9, 2024

 


Commentary:

1. All mutual fund types except for debt funds corrected for the week. Both commodity and equity funds corrected for the month on average.

2. Annual Top 50 return is now reduced to 69.92%.annually Monthly Top 50 return is now reduced to 6.06% monthly. Annual Hybrid return of top 50 is now reduced to 33.32% annually. Monthly Hybrid Top 50 return is now reduced to 1.07% monthly.

3. There is room to invest freshly based on Top 50 funds selectively.


4. Looking at the Monthly Top 50 funds list, the one in the green are those with above average return in all timelines from 1M thru 1Y. The one in the amber are those missing above average return in only one timeline across 1M thru 1Y.

5. Pharma/Healthcare funds dominate the Monthly Top 50 list. Some FMCG/Consume and IT/Tech funds too can be found here.


6. Purpose of the Monthly Bottom 50 funds list is to appreciate the bearish reversal of some bullish equity funds. The above average annual return is bolded within the list, and below average monthly and weekly return are highlighted with Red Bold. The funds with below average weekly or monthly return and above average annual return are highlighted with Bold Red. Among these, most notable is the HDFC Defence fund, which continues its bearish reversal.US Equity based funds are also in bearish reversal. The bearish reversal is a clue to sell the fund and protect the profit so far, even at the risk of short term capital gain. eg. Those who entered HDFC Defence fund at the top annual return of 147% are now staring at significant correction, bringing this annual return to 102% level. So, those who sold on first bearish reversal are smiling.

 


7. Looking at the Annual Top 50 equity list, only two funds made it to the green status, there are many in amber. I am personally fascinated to start investing in Bandhan Small Cap fund, as when the going gets tough, the tough gets going.


8. Purpose of Annual Bottom 50 list is to appreciate the bullish reversal of underperforming funds. It does not mean that they are investment worthy. The bullish reversal is identified with those having above average return either in weekly or monthly column, and also on annual column. Noteworthy ones are the bunch of Bank ETFs with confirmed bullish reversal. The worst seems to be over for these funds.


9. With equity correction, we should expect some leadership churn out in the Hybrid Monthly Top 50. The one in the green are those with above average return from 1M thru 1Y timelines. The one in Amber are those with missing above average return in 1 timeline only across 1M thru 1Y.

10. The equity correction has allowed entry of some balanced advantage funds into this list, which  otherwise wont make the list due to less aggressive returns. 


11. When it comes to Hybrid Annual Top 50, the leadership names are similar to usual. It is interesting to note that the DSP Equity & Bond Fund popped into Amber in both the monthly and annual top 50 list.


12. Commodity funds paint a sad story with correction both on weekly and monthly basis. No fund could get the green status. There are bunch in Amber.

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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