Diversified funds are bleeding
But Investors Are Not In A Hurry To Make An Exit, Wait For Buying Scope TIMES NEWS NETWORK Mumbai: Diversified equity schemes continue to be in the negative territory. The best performing scheme — Birla Sun Life Asset Allocation Aggressive (see table) — has returned -30% in the last one year. JM Emerging Leaders, the worst performer in the category, has posted -70% returns (if one could call that) in the past year. However, what is surprising is that investors, those who have seen their capital wiped out as well as those still in the black, are not in a hurry to get out of the market. They seem to be listening to their financial advisers, who are advising them to hold on to their investment and start buying in small quantities over a period of time. ''It is a good sign that investors are not pulling out money in a big way this time. It shows that there is much more awareness about the stock market,'' says Mukesh Dedhia, director, Ghalla & Bhansali Securities. ''In fact, money is still coming in small quantities. The next time when there is a similar fall like the one we had this year, I think people would start buying in a big way.'' The view is shared by a senior fund manager: ''Sure, you could argue that those who have entered the market in the last year or two are not in a position to get out of the market, as their capital has eroded by almost 50%. But even those who entered the market in 2003 and still have positive returns are not showing any signs of panic.'' Dedhia says investors should shift their attention from their purchase price and focus on valuations. ''Whether you have made a profit or loss, you shouldn't focus on your purchase price. You should understand that the valuations are very attractive now,'' he says. ''This is the time to start buying in small quantities over a period of time and wait for the market to turn around.'' That leads to the question: how long should one wait? Mutual fund managers and financial advisors wouldn't hazard a guess. ''Whether it will happen in a year or in the next five years is difficult to predict. But it is certain that it will happen at some point,'' says Dedhia. ''If you are in the market, you would benefit from the next bull run.'' --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en -~----------~----~----~----~------~----~------~--~---
