New Year begins on gloomy note for funds - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

New Year begins on gloomy note for funds

Jan 19, 2001

The start of the New Year has not been worth raving about as far as the mutual fund industry is concerned. The first 17 days of January 2001 saw only four days when funds made net purchases, with the balance 9 days witnessing net sales.

The Sensex has moved very uncertainly in January 2001. There were instances when the Sensex fell below 3,960 points, only to cross 4,170 points within a few days, then sinking to nearly 4,000 points once again. Mutual funds moved in tandem with the Sensex as is evident from the chart above. In 13 days of trading (until January 17, 2000), funds made net purchases only on 4 days!

Fund managers have bought shares when the markets are down, to exploit the value opportunities. They then offload the stock when it rises appreciably. This is better known as ‘timing the market’, and is not necessarily a healthy trend for the industry. Most fund managers have an extremely short view on stocks (at times as low as a quarter) and do not invest over the longer term. Ultimately this may harm the fund more than it does good.

Equitymaster requests your view! Post a comment on "New Year begins on gloomy note for funds". Click here!

  

More Views on News

Sorry! There are no related views on news for this company/sector.

Most Popular

Hotel Stocks Will Reward Investors (Fast Profits Daily)

Jun 8, 2021

This is why I'm bullish on the hotel and hospitality sector.

My 'Unlock' Investments (Fast Profits Daily)

Jun 11, 2021

The best unlock investments you can make in the market.

The Most Visible Sign of India's Revival is on Two Wheels (Profit Hunter)

Jun 9, 2021

Investing in the best stocks could result in wealth compounding on a massive scale.

How I Discovered a 400-Year-Old Open Secret to Extreme Wealth (Profit Hunter)

Jun 11, 2021

Charlie Munger's open secret about investing success.

More

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms

MARKET STATS