Heavy selling by mutual 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?  

Heavy selling by mutual funds

Oct 11, 2000

The gloom pervading the markets has forced many a fund manager to push the ‘Sell’ button in a hurry. The markets have tanked significantly over the past few days. The BSE Sensex has fallen 5% from 4,159 points in October 4 to 3,947 points in October 10. What is even more disconcerting is that yesterdays 100+ point fall in the Sensex came in the backdrop of an impressive 134% (year on year) growth reported by Infosys, the darling of Indian bourses.

As the selling spree continues and stock prices head southwards, growth fund net asset values (NAVs) are going to take a hit. As more and more software companies look set to declare impressive results, its anybody’s guess where the markets are headed over the following days.

However, one thing seems sure. If investors decide to exit from growth funds in a big way and fund managers are forced to book losses in a falling market, we could witness a situation today, very similar to the one in March, when funds had serious problems meeting redemption requests of over Rs 25 bn.

Investors who have entered growth funds for the long term should be able to take the market slide in stride. However, investors with a shorter investment horizon (of less than 6 months) have some cause for worry.

Equitymaster requests your view! Post a comment on "Heavy selling by mutual funds". Click here!

  

More Views on News

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

Most Popular

India: Recovery Stalled by Vaccine Games? (The Honest Truth)

Apr 13, 2021

Ajit Dayal on how India's vaccine strategy will impact the markets.

4 Stocks to Make Your Portfolio Immune to the Second Covid Wave (Profit Hunter)

Apr 6, 2021

Rather than predicting the market, successful investing is more about preparing well and placing your bets accordingly.

An India Revival Stock I'm Bullish On... (Profit Hunter)

Apr 9, 2021

This could take India to the position of 3rd largest economy.

Why Did the Market Crash on Monday? (Fast Profits Daily)

Apr 13, 2021

In this video, I'll you what I think is the real reason behind yesterday's market crash.

A Unique Sector for Short-Term Profits (Fast Profits Daily)

Apr 12, 2021

This ignored sector could deliver big short-term profits.

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