How to invest in Mutual Funds? – Power of Technical analysis

You might have come across application of Technical analysis – Elliott wave on Stocks, Commodities, Currency but we are extending this study to Mutual Funds and trust me it has worked out amazingly well.

 

There have been skeptics who reject any new methods or innovation without testing it. But we thoroughly believed in application of methods like Elliott wave and Technical analysis will work well on the NAV of the funds as the emotions that drives any stocks or index is similar which drives the NAV of the funds which is nothing but a index of basket of stocks.

 

Many believe the components keep changing but it also changes for indices like Nifty as well. So if a method works so accurately on indices there is no reason why it will not work on Mutual Funds NAV.

 

Below is an astonishing proof that of how amazingly well Canara Robeco Emerging Equities performed as per our expectations. See it yourself –

 

Canara Robeco Emerging Equities Fund: Daily Chart Published on 1st Feb 2017

How to invest in Mutual Funds? – Power of Technical analysis

How to invest in Mutual Funds? – Power of Technical analysis

 

Happened: As of December 2017 

canara happened 20171227

 

Anticipated on 1st February 2017 in our Mutual Fund research report –

CanaraRobeco Emerging Equities is the best amongst the small cap & mid cap category and it is ranked 2nd by CRISIL. It aims to generate long term capital appreciation through investing in diversifies mid-cap stocks which have higher probability to turn into bigger corporate in the coming future.

Portfolio Analysis: As per the sectoral holdings Chemicals have been most favored sector for this fund as it is contributing 13.63% to the entire portfolio followed by Engineering & Capital Goods and Banking & Finance Sector. Top Holdings and Sector Allocation for this fund are shown below.

Top Holdings:

Company PE % Assets
Atul 23.70 3.33
Engineers India 32.48 2.96
CARE 31.90 2.55
PI Industries 30.24 2.36
CCL Products 34.10 2.24

 Sector Allocation:

Sector %
Chemicals 13.63
Engineering 13.40
Banking & Finance 13.21
Automotive 10.32
Cement 8.90

 Returns as on 1st February, 2017

Performance Fund
1 Year 20.87
3 Year 37.38
5 Year 27.70

 

Risk Profile: The risk associated with this fund is too high because the total investment is focused on the stocks from small caps and midcaps sector……….However every coin has 2 sides as these small size companies have potential to turn large which once happens can add bumper returns to your corpus. It is suitable to investors having high risk bearing ability within the age of 20-40 years.

 Technical Perspective: The Daily chart of Canara Robeco Emerging Equities shows that wave 2 looks to be complete at the recent lows of 64 levels near the channel support and now wave 3 is in course. Also the 50 days EMA is continuously acting as support to the price which further indicates positivity in the trend. BANG ON!

 

Happened: This scheme indeed moved precisely as expected. The fund NAV rose from 64 to now at 94 levels in less than a year. That is a whopping return of more than 46% from February to December 2017.

The above simply highlights the power of Technical analysis that we use to advise our clients on Mutual Funds selection and Investments. You can now subscribe to our Mutual Funds weekly research report that has asset allocation to Nifty, Gold and Funds to be considered with detailed analysis. Subscribe NOW!

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The above research is by Waves Strategy Advisors

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