{"id":14370,"date":"2018-10-17T18:12:49","date_gmt":"2018-10-17T12:42:49","guid":{"rendered":"https:\/\/www.fundsindia.com\/blog\/?p=14370"},"modified":"2019-11-08T11:10:16","modified_gmt":"2019-11-08T05:40:16","slug":"changes-to-fundsindias-select-funds-oct-2018","status":"publish","type":"post","link":"https:\/\/www.fundsindia.com\/blog\/mf-research\/changes-to-fundsindias-select-funds-oct-2018\/14370","title":{"rendered":"Changes to FundsIndia’s Select Funds"},"content":{"rendered":"

These are tough times for equity and even debt markets and for mutual funds<\/a>. A host of\u00a0global and domestic factors have sent markets into worry mode. Against this backdrop, we have made changes to our Select Fund list with caution this quarter. We have always been careful in our fund selection, preferring to base our decisions on consistency in performance, the level of risk adopted, fund strategy and the fund\u2019s portfolio in context of the market prevailing at the time.<\/p>\n

\"\"We prefer to avoid making snap calls based on a fund’s underperformance or sudden high outperformance.\u00a0The near-term returns of our Select funds may be a put off for you. But what we can tell you\u00a0is that these funds have weathered similar volatility and have emerged as consistent players.\u00a0Our first suggestion to you is to therefore hold on and not make decisions based on the\u00a0current performance of funds.<\/p>\n

Equity funds<\/strong>
\nIn the past month, several factors have come to a head. One, crude oil prices climbed on\u00a0supply squeeze. Two, the strengthening dollar caused a swift depreciation in the rupee as\u00a0well as other currencies across the globe. Both these impact inflation, deficit, corporate input\u00a0costs, import costs and interest rates. Three, concerns that growth is slowing globally,\u00a0persisting trade stand-offs, and the strong dollar sent foreign institutional money scurrying out of our markets.<\/p>\n

These factors pushed the Nifty 50 and the Sensex down 9.8% since their highs in August. But\u00a0as we\u2019ve have been repeatedly saying, the index numbers belied the trend in the broader\u00a0market. Mid-cap and small-cap indices had not seen a rally. Even in July, 70% of the stocks\u00a0making up the BSE 500 index were lossmaking on a year-to-date basis. The Sensex and the\u00a0Nifty 50 at the time were scaling highs. What does this mean?<\/p>\n