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Mutual Fund NAVs Start Falling; Time To Buy Selectively


The net asset value of mutual funds have started falling and in the last one month we have seen a dip of 8-10 per cent depending on the fund, thus making them reasonably attractive for the long term.


Mutual Fund NAVs Start Falling; Time To Buy Selectively
Investors who have a long term perspective may start buying as they now offer a slightly lower entry point as compared to two months ago.

Most of the large cap funds have shown a negative return in the last one month. Here are a few funds that you can buy selectively, since you are getting them at lower rates.

SBI Blue Chip Fund

The SBI Blue Chip Fund has been a consistent performer in the last few years. However, in line with the sharp fall in the markets in the last one month, the fund has generated negative returns. In the last three months the returns has been negative 2 per cent, while in the last one month the return has been negative 7 per cent. In the last one year, however, the return is a whopping 40 per cent.

The Fund has some quality stocks in its portfolio including the likes of HDFC Bank, Maruti Suzuki, Motherson Sumi and Larsen and Toubro.

Tata Equity Opportunities Fund

Tata Equity Opportunities Fund is yet another fund that has done poorly in the last three months in line with the benchmark indices, but has performed well in the last one year. Tata Equity Opportunities Fund has generated a negative return of 9 per cent in the last one month, but has given a return of almost 36 per cent in the last one year.

Again the portfolio of the fund comprises some of the bluest of blue chip stocks including the likes of HDFC Bank, Axis Bank and ICICI Bank from among the banking sector. It has also got exposure to other quality stocks like Maruti Suzuki and HCL Technologies.


Now, if you are a long term investor you can buy these funds if you find the net asset value dipping a little. Their performance of course would largely depend on how the stock markets perform. We believe that the stock markets would see more pain in the short term, though the chances of the markets doing well from a 3-5 year perspective are very bright.

If that happens these stocks could do well given the fact that they have some blue chip stocks. Buy the fund from a 3-5 year perspective.

Story first published: Friday, May 8, 2015, 10:26 [IST]
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