Being Relevant to Markets-Peter Lynch,“Far more money has been lost by investors trying to anticipate corrections, than lost in the corrections themselves.”

This section is all about knowing and  understanding the current texture of markets- the style which market is favouring & pockets which fund managers and smart money have started to look at.

There is randomness around its change and it follows no predictable path. If you are observant of this section it would do well to keep regular watch around it, take inputs from it, evaluate and form your individual investing strategy which suits you taking your suitability and risk profile in mind.

Different time periods in markets have different opportunities to offer. Sometimes – Rotation between different sectors in play, sometime deep value pocket of the market starts gaining momentum, sometimes overall texture of the market starts deteriorating, sometime risk reward is  placed with tremendous odd with small cap & mid cap and sometime large cap is hugely discounted,or some sector which has been in correction mode is all set to go up.

This section is usually triggered once a month( that’s the minimum observation we like to do). However, this can be triggered on any event materializing on political, geopolitical, budgetary allocation policy , regulatory, industry change etc.
Bottomline- – markets are dynamic and no one particular style of investing works well in all markets.

It is not a recommendation to BUY or Sell any particular investment – but acts as a light post which we would like our investors to know as in which direction to look at.

Mutual Fund Investments are subject to Market Risks and please read all offer related documents carefully before investing.

This is a BULL Market and This BULL has legs, Sector rotation is here to stay and we are in for a ride for 1 or 2 years unless something changes in the matrix.

An unexpected correction can come in any time but it will be good for overheated parts of the market to cool down.

Stay invested and ride the Bull. This Bull will only run faster and faster leaving the non believers behind.

We are in the Making of a Bubble and this is when a lot of money gets made riding the madness of the crowd.

# Investors opting for Systematic transfer plans should consider smaller tenure STPs instead of STPs of 1 years or longer. Averaging each installment is likely to work against as it can raise the cost of acquisition of units.

# Liquid Funds/Cash Funds/Debt Funds/Arbitrage Funds likely to underperform on return generation in this kind of scenario where growth assets are doing considerably well.

However, while considering rebalancing from liquid/cash/debt funds to growth assets, one needs to consider his or her liquidity needs and current cash flows.

Any investment coming in should be made with a minimum horizon of 12 months to 18 months from here on alongwith asset allocation approach in  mind; for 100% equity denominated funds idle investment horizon is 6 years+

# Favoured Style at the moment – Multi cap approach for stable diversified investment at the core of portfolio / Business Cycle themes to play sector rotation/ Asset allocation Hybrid Funds for optimising risk and returns.

# Niche mandate funds represented by themes and sectoral funds should be considered only by experienced and active investors.  Some important themes worth looking at are Energy , manufacturing, Banking and financial services, Innovation, Quant. Due caution of not going overboard with niche mandated funds is very important as bad timing can cause considerable irreversible capital losses in this segment.