Top 50 Mutual Funds Analysis for the week ending Oct 18, 2024

 

Commentary:

PART A: EQUITY FUNDS

1. Equities had a bearish week. But the equities had a rally on Friday, the last trading day of the week, else the numbers for the week could have been worse that what is shown above. Banks rallied, and the sentiments looked up for now. Hope the worst is over for the Indian equity, for this no more FII withdrawl of funds from equity needs to be confirmed through next week.

2. Looking at the averages of all equity funds (last line) across this week and last week, the equity funds corrected for both the week and month. The average annual return shrunk from 40.46 % to 39.8%.

3. The weekly gain of Weekly Top 50 this week is 1.78% compared to 3.03% last week. The monthly gain of Monthly Top 50 this week is 6.33% compared to 10.22% last week. The annual gain of annual Top 50 this week is 65.36% compared to 67.38% last week.  

4. Given below are the Top 50 equity funds per weekly, monthly and annual. The one marked in the green are those with above average return in the list for all timelines from 1W thru 1Y. The one in amber are those with above average return in for all timelines from 1W thru 1Y except for 1 timeline. For amber, if any of the 1W or 1M return are above average, then it is considered as above average for both the timelines. One can definitely look at green ones as investment worthy. The amber ones too are investment worthy if their returns in the recent week are above average and spectacular.

5. Given below are the weekly bottom 50 and monthly bottom 50 list. Both the lists are used to identify potential bearish reversal of high performing funds. This is done by marking below average return within the list for both 1W and 1M timelines, and above average return for the 1Y timelines.

From this week, a refinement is made in identifying potential bearish reversals. If both the weekly and monthly returns are below average with annual return is above average, then such rows are marked as slightly darker red. If only one of the weekly or monthly returns are below average and annual return i above average, then the fund is marked with lighter red. The ones with darker red are more pronounced for bearish reversal. 

6. Annual Bottom 50 list is used for identifying potential bullish reversal. The rule for bullish reversal is tightened further from this week, which is both the 1W and 1M returns need to be below the average within the list, such funds are marked with grey. Since the bank stocks rallied on Friday, hope the banking funds stuck in this annual bottom 50 will show better bullish reversal thru next week, it is ideal if they disappear from this list altogether.

PART B: HYBRID FUNDS

7. Due to equity correction, hybrid funds to receeded in performance in almost all timelines except for 6M timeline. There is leadership churnout in the Monthly Top 50 Hybrid funds list.

8. When we see more conservative type hybrid funds in the Monthly Top 50 (eg. equity savings, arbitrage), which usually has more aggressive hybrid funds in the list, it is clear indication of the high intensity of equity correction within hybrid funds.

PART C: DEBT FUNDS

9. The debt funds show much lesser return for the short term, i.e. for 1W, 1M, 3M timelines this week, when compared to last week.

10. We can see churn out in the Monthly Top 50 leadership in the debt funds too.

PART D: COMMODITY FUNDS

11. Though commodity funds 1W return bounced back this week, the annual returns reduced. Basically, there is churn out in commodity funds leadership thru the volitility of global commodity prices.

12. Whether it is a weekly Top 50 MF report or special MF report, these are availble in the blog indicated below. Blogs are also rendered as videos (on Youtube and Instagram) for those not prefering to read.

Blog: NatsFunCorner! on Blogger

https://natsfuncorner.blogspot.com/

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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.