Commentary:
Summary
The mutual funds in general corrected thru this week, but not as much they corrected thru the last week. The commodity funds gained more than they corrected thru the last week. The correction is seen across equity, debt and hybrid funds thru this week.
Commodity funds stand out as the most attractive mutual fund investments in general, across all the timelines from 1W thru 1Y.
The RBI did not cut interest rate further, hence the financial funds did not recover thru this week. RBI sent a sentiment which is neutral, but the Indian market remains bearish ahead short term for the reasons of quarterly results not confirming economy recovery thru Q1 2026, US tariff situation, the outflow of FII money, and global uncertainities ahead.
Concern:
The US market remains extremely volatile. The global supply chain is getting disrupted due to US tariff flip flops. US in general is losing faith across the rest of the world due to the temperament of the Trump administration. The Ukraine Russia war situation is going thru further uncertainities around the proposed truce. The US debt situation may get worse ahead causing US dollar degradations ahead. But, the US is gaining thru the AI revolution and energy / data center / electronic equipment demand surge. The commodity market is flip flopping week in and week out, and if the US revalues its gold reserves for the benefit of debt level improvements, commodity prices may surge ahead, they will continue to surge as the dollar weakens ahead. It is fairly certain that the reward with the commodity is bit more than the risk though short term correction risks remain due to volatility.
Since there is a risk of upto 20% correction in Indian equity funds short term, further equity or hybrid investments should be avoided till the clarity establishes beyond August.
Opportunity:
It is safer to invest in commodity funds ahead for the short term.
1. Combined Funds Top 50
1.1. Combined Funds Top 50 Summary
The Top 50 averages, which is Weekly Average of Weekly Top 50, Monthly Average of Monthly Top 50, and Annual Average of Annual Top 50 improved when compared to last week.
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
1.2.2. Combined Monthly Top 50
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/
Other relevant Social Network Platform links:
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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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