Commentary:
Summary
The mutual funds in general, corrected through this week. However, the annual return average improved when compared to the last week, which means annual return leaders are performing better in general. However, the weekly return average of annual bottom 50 turned red from green thru this week, which means the performance leadership recovery cause is lost among laggards.
Equities are underperforming both from 1W and 1M basis. The rest are better than equity for the same time periods, and the commodities are shining brighter in this regard.
But the Annual Top 50 returns improved significantly, which means, when going gets tough, the tough gets going, meaning the annual performance leaders are faring better than the rest.
Concern:
There is a further risk of correction in the market ahead, so the trend of underperformance and lack of consistency of leadership may persist. The commodities may remain to be the most attractive.
Opportunity:
In spite of weekly volatility, commodity funds are accumulating better returns for the longer timelines.
1. Combined Funds Top 50
1.1. Combined Funds Top 50 Summary
Weekly return of Weekly Top 50 and Annual return of Annual Top 50 improved thru this week, but the Monthly return of Monthly Top 50 waned. So, there is an emergence of new performance leaders relatively thru this week, and the annual performance leaders established better grip (mainly due to commodities).
1.2. Combined 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. Combined Weekly Top 50
Indian equity funds remain unattractive for new investments.
NOTE: The title reads as "Weekly Bottom 50", it should be "Weekly Top 50".
1.2.2. Combined Monthly Top 50
Indian equity funds remain unattractive for new investments.
1.2.3. Combined Annual Top 50
Indian equity funds remain unattractive for new investments.
Bearish reversal signs:
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.
Bullish reversal signs:
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.
2. Referrence Links
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.