He checked last 3 years performance, excited about it and chosen this fund. Rajesh has picked-up a small cap mutual fund scheme to invest for 3 years time frame to use this for his kids’ education. How to choose a good mutual fund suitable for you? However, investors should pick-up mutual fund schemes based on some of the key parameters. In this bull run, majority of them are top performers. There are over 800 mutual fund schemes (equity and hybrid) in India. Among these various options, month SIP is popular.
This could be weekly SIP, fortnightly SIP, monthly SIP, quarterly SIP or yearly SIP. Systematic Investment Plan (SIP) is a disciplined way of investing in mutual funds with equal amounts at predefined interval. Mutual funds pool money from investors and invest in equity or debt or gold or silver or real estate etc., depending on the investment objective indicated in the scheme information document (SID). This is because multicaps are free to move in and out of stocks without any restriction.Skip this section if you are already familiar with mutual funds in India. We believe that a multicap strategy will be best suited for most investors. What’s in store for 2020? Will mid and small caps perform in line or better compared to large caps or will they continue to underperform? Very difficult to say but we have touched upon this topic in the December issue of The Alpha Investor. However, if one considers the last quarter of 2019, the rally has been broader. Midcaps and smallcaps have been literally battered if the last 2 years are considered! In this blog, we will have a look at the best performing mutual funds of 2019 here in India.īut first, let’s see how did some of the more important indices performed here in India.Īs one can see and as has been the most-discussed theme of 2019 – Only a handful of largecaps are driving the stock market. However, mutual funds that did great or beat the market in a year like 2019 deserve a lot of praise. This just goes to highlight that funds that do bad in one year are not necessarily bad funds and can always bounce back. This is extremely surprising since Warren Buffet and the fund both are based out of the USA whose most-tracked index S&P 500 returned 25%+ in 2019! The biggest hedge fund’s flagship offering gave a negative return. This doesn’t mean that a mutual fund/portfolio manager that performed badly in 2019 automatically becomes a bad fund/manager.įor example – Warren Buffet had a bad 2019. Years like 2019 differentiate good managers from the bad.
However, 2019 was a great test for portfolio managers all around the world. Read: The Alpha Investor – December Issue Cover Story: The Fed is the only real game in town! There is very real disconnect between the performance of global equity indices and the GDP growths around the world. 2019 was really a out-of-the-whack year for the markets globally.
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