Technical’s doing wonders on Mutual Funds!

By Rahul Pithadia – History says that fundamentals are more preferable on mutual funds rather than technical’s but here is the example which is against this phenomenon. Technical study along with time cycles and basic channeling techniques are suiting brilliantly on the below chart and also this fund has performed as the path shown. Now as per this technical study important low should be in place at immediate levels and then multiyear’s bull trend should resume which will be in sync with our outlook on Indian markets.

L&T India Value Growth Fund – weekly chart (Anticipated on 21/10/2015)

L&T value india fund anticipated 20160125

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

L&T India Value Growth Fund – weekly chart (Happened on 20/01/2016)

L&T value india fund happened 20160125

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

L&T India Value Growth Fund is an open ended scheme launched in January 2009. This belongs to a Diversified category as the fund has exposure across Largecap, Midcap and Smallcap. This fund is ranked 1 in Diversified category by Crisil.

Portfolio Analysis: As per the sectoral holdings Banking/Finance have been most favored sector for this fund as it is contributing more than 15% to the entire portfolio followed by Manufacturing and Cement Sector. Top Holdings and Sector Allocation for this fund are shown below.

Top 5 Holdings:

top holdings 20160125

 

 

 

 

 

Sector Allocation

Sector allocation 20160125

 

 

 

 

 

Returns as on 19th Jan, 2016

Returns 20160125

 

 

 

 

Risk Profile: This fund belongs to the high risk category given complete exposure only to equity. However, by way of SIP the risk can be reduced and also prudent asset allocation across different scheme including debt and balanced fund can provide optimum mix and reduce the risk. Also as we think long term trend for Nifty is on upside this fund offers good opportunity to ride the next wave of up move.

Time cycle of 64 weeks: Time is difficult parameter to judge while investing nevertheless here we are trying to find out the cycles which can increase in objectivity while doing investment process. 64 weeks Time cycle has been working well and the same is due by start of 2016. So we expect NAV to move in correction till start of 2016 and towards 22-24 level which will provide buying opportunity.

Investment Perspective: Small investments can be made in this scheme and once the correction is complete the exposure can be increased to capitalize on the next big move. Parking your fund by SIP route offers good option for now.

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