Bear Markets: Suitable for Mutual Fund Investments? A BALANCED approach to create wealth!

By Rahul Pithadia: History shows that Equity markets have given by far better returns than any other asset class over the long term basis. Each asset may it be orthodox Bank Fixed Deposit, Debt funds, Gold or Equity each of them are impacted by Economic and Interest rate cycle. Equity markets are also largely driven by collective social mood. However, such movements are not random but in patterned fashion and are governed by Elliott wave theory.

Case in point: Volatility is high in Equity markets and many have bad memories of the sharp corrections seen during the fall of 2008. But if you really look at the bigger term picture the overall trend has been on the upside and we are on constant path of progression. The high made by Sensex was near 21000 in 2008 and we touched a level of 30000 early this year. So even if you would have been among a few who ended up investing exactly at the wrong time at the top of 2008 still your portfolio would have been at much higher level provided you selected the right stock or Mutual Fund.

Now look at the below NAV chart of SBI Magnum Balance Fund (NAV as on 18th November 2015)

sbi magnum 20150212

SBI Magnum Balanced Fund Growth is an open ended fund which provides balance between stability and growth.
Portfolio Analysis: This fund has invested approximately 25% into debt instruments having average maturity of 18-20 years. The equity allocation of this fund is into 46 stocks diverse across sectors. The top holdings and sectoral allocation for this fund are given below:
Above chart clearly shows that even if you would have invested in this fund at the top of 2008 near 53 levels you would have ended up making 100% return. We use Elliott wave analytics to understand the maturity of trend and trust me the return would have been much better if you adopted an SIP route.

Do not get carried away by jargons and overwhelmed by so many funds available in the market. We are here to help you invest systematically may it for Tax purpose, Financial Goals or to make money work for you.

Trust me we have seen history and know the best way to keep money moving rather than worrying about the risk! Also get access to weekly research to understand the overall trend of broader market & Mutual Funds at no additional charge .

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