Dilemma before mutual funds investors: Buy now or wait till election results?
stock market behaving unpredictably in a highly volatile environment amid Lok Sabha elections, mutual fund investors are caught between fear and greed. On one hand, investors are fearing a correction as the market is already at peak and on the other hand the boom is bringing in FOMO.
In the last month, sectoral/thematic funds have topped the return chart and offered double-digit returns. HDFC Defence Fund, the topper in the list, gave 17.54% return in the last one month. Invesco India PSU Equity Fund and Canara Robeco Infrastructure Fund offered 14.86% and 14.79% returns, respectively.
Best MF to invest
Looking for the best mutual funds to invest? Here are our recommendations.
View Details» <div data-placement=«Mid Article Thumbnails» data-target_type=«mix» data-mode=«thumbnails-mid» style=«min-height:400px; margin-bottom:12px;» class=«wdt-taboola» id=«taboola-mid-article-thumbnails-110485296»>
Mirae Asset Hang Seng TECH ETF FoF gave 10.50% return in the last one month. DSP Global Innovation FoF and Quant PSU Fund delivered 10.40% and 10.15% returns, respectively.
Also Read | Four PSU MFs offered over 100% returns in one year. Will the magic repeat after the election?
Thematic/ sectoral funds and small cap funds have managed to offer good returns. Should an investor invest in these schemes before the election results?
“We would advise that investors do not formulate their investment strategy basis election outcomes. Thematic and small cap funds are ideally not recommended as small caps and most sectors are quoting at significant premiums to their long term valuations,” said Vishal Dhawan, CEO, Plan Ahead Wealth Advisors, a wealth management firm in Mumbai.
“I think it will not be wise for the investors to take a
