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How To Deal With Market Volatility

 

After a strong market rally in the previous financial year, the last 2 months of the new financial year have been volatile. The key question now is if it is the right time for investors to enter the equity market?

We feel every correction is an opportunity to invest for the long term on the reason stated below.

  1. On the macro front the twin deficits (fiscal / current account) along with inflation are well contained, growth has bottomed out and the currency is stable.
  2. History tells us that a sequential bull market is always accompanied with sharp corrections at time up to 10% and more

We have tried to illustrate this by studying the last bull market: between April 2003 and January 2008.

 

As you can see, every steep correction in the market has been followed by a long rally. Market corrections are merely a part of the bigger bull market.

At Sundaram Mutual, we continue to maintain a positive outlook in the medium-to-long term period on our flagship funds - Sundaram Select Mid Cap & Sundaram S.M.I.L.E.

From a valuations perspective, both Select Mid Cap at 15.5x FY17 and S M I L E at 11.5x FY17 are trading considerably lower than their historical highs. With earnings in the mid and small cap pack expected to rise over the next few quarters, it is only reasonable to believe in the growth outlook of these two funds.

Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015

1.ICICI Prudential Tax Plan

2.Reliance Tax Saver (ELSS) Fund

3.HDFC TaxSaver

4.DSP BlackRock Tax Saver Fund

5.Religare Tax Plan

6.Franklin India TaxShield

7.Canara Robeco Equity Tax Saver

8.IDFC Tax Advantage (ELSS) Fund

9.Axis Tax Saver Fund

10.BNP Paribas Long Term Equity Fund

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For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

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