Written By Awdhesh Nagar
With revival of market returns on Mutual Fund are better now. Anyone with around 5 years of sip is sitting on very good returns.
However not all the funds have performed in a bull market. Not all funds of portfolio perform at the same time. Funds follow an investment strategy given in offer document or KIM (Key Information Memorandum) and do not change it in medium term irrespective of returns they make.
Investor normally tend to change such funds and move to fund offering good return in recent past of 2-3 years. Mostly funds which have performed in last 3-4 years may not be the one to deliver in next 3-4 years as their strategy has already paid and stocks, they hold are already fully valued. Market will look at different kind of stocks for further growth and a different set of scrips will grow in future.
Now we have a long period data available for many funds and one should choose funds based on risk appetite, goals and long-term credibility of fund house. Investing or moving out based on recent past return may not offer optimum growth to portfolio.
About Awdhesh Nagar: Awdhesh Nagar is experienced banking and financeprofessional. He has good knowledge of economics and business-related matters. He currently runs his own organisation by the name ‘finance edger’ which
advises more than 300 clients on their personal financial planning. Awdhesh is
on mission to improve financial literacy. He considers himself responsible for
financial wellbeing of his clients. In past he has worked with organisation
like Citigroup, GE, Standard Chartered, SREI at senior level position Awdhesh
has also worked for ‘Jaipur Smart City’ project of Government of India’ as
Financial Expert. He has handled investment, funding and project finance
portfolio in these organisations. He regularly visits education institutes as
guest speaker and provides his views on budget and economic events on media.
Awdhesh has done his B.Com(H) from Sri Ram College of Commerce and MBA-Finance
from University of Delhi.
