Commentary:
1. Equity Funds
1.1. Equity Funds Summary
Though this week had only three trading days, the market showed a significant bullish trend, thanks to all three days of FII net buying in the Indian equities. This buying might have been more influenced bt the exit of investments from the dominant US, China and other global markets. The DIIs who invest in mutual funds based on retail investors actually had net selling on all three days. Probably individual investors too did some net buying, but I do not have data to confirm it.
If you look at the equity MF performance summary across this week and last week as shown above, retruns across all timelines of Top 50 funds based on different timelines (1W, 1M, 1Y) significantly improved. However, when we get into the details of these Top 50 funds, we can say that the rebound is not broad based, primarily restricted to financial funds and gold related funds.
The following funds can be considered for fresh investments due to leadership of performance and relatively better consistency of performance:
- All the India financial mutual funds and India defence funds in the Weekly Top 50, and also Monthly Top 50 with yellow highlight. Not listing specific ones as there are more than a dozen ones.
Mirae Asset Nifty Financial Services ETF can be considered for being green on the Annual Top 50 list, which is a more pronounced consistency of performance along with performance leadership.
Typically, every week mutual fund investment decisions to be made are of three types:
- Hold: This needs doing nothing. One should check the bearish reversal indications from the Weekly and Monthly Bottom 50 for those funds with risk of further erosion of gains ahead. The Annual Bottom 50 funds list with funds marked in grey too help differently, alerting that one should avoid selling them now as they are showing signs of bullish reversal.
- Buy: The funds marked green and yellow on Top 50 funds across 1W, 1M and 1Y with significant returns (pref above average in the list, marked bold) for shorter term which is 1W and 1M. One should not yet buy the funds marked for bullish reversal in the Annual Bottom 50 list, as they are indications of potential reversals and not confirmed bullish behaviors for investments yet.
I typically discuss buy list in the summary, it is understood that one does one's homework for hold and sell by looking at bottom 50 lists too.
- Sell: It is better to sell the funds marked for bearish reversal in the weekly and monthly bottom 50 lists, as risks of losing investment gains are higher than making further gains ahead short term. For example: IT related funds have been flashing sell signal for many weeks now from the weekly and monthly bottom 50 lists.
1.2. Equity Top 50
1.2.1. Equity Top 50
Green and Amber color marked mutual funds in the list: Since the focus is not only looking for the performance leaders, but also consistent above average performance across all the timelines, the funds are marked in Green or Amber to easily recognize consistency of perfromance among the leaders.
Green:
If the returns for all the available timelines from 1W thru 1Y is above the average within the list. The fund can not be marked green even with this rule if the returns are not available beyond a month, in which case the fund is marked as amber only.
Amber:
If the returns for all the available timelines from 1W thru 1Y is above the average within the list except for one timeline. For this exception, if any of the weekly and monthly returns are above average, then both timelines are considered to have above average
1.2.1. Equity Weekly Top 50
1.2.2. Equity Monthly Top 50
1.2.3. Equity Annual Top 50
1.3. Equity Bottom 50
Both the weekly and monthly bottom 50 lists are leveraged to identify potential bearish reversal indications of the funds. This is done by marking above average annual return in bold and below average returns for the week and month. The funds with both weekly and monthy below average, but annual above average are marked in darker red, while the funds with only one of the weekly and monthly below averages but with above average annual return are marked in light red.
Annual bottom 50 funds list is used to recognize potential bullish reversal. Any fund with above average return for both the week and the month in the list is marked as grey indicating potential bullish reversal.
1.3.1 Equity Weekly Bottom 50
1.3.2. Equity Monthly Bottom 50
1.3.3. Equity Annual Bottom 50
2. Hybrid Funds
2.1. Hybrid Funds Summary
2.2. Hybrid Monthly Top 50
3. Debt Funds
3.1. Debt Funds Summary
3.2. Debt Monthly Top 50
4. Commodity Funds
4.1. Commodity Funds Summary
4.2. Commodity Monthly Top 50
5. Whether it is a weekly Top 50 MF report or special MF report, these are availble in the blog indicated below.
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.
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