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Did you miss the fall
It’s time to question all those experts & all those financial power houses who gave bearish statements a month back and said Sensex has high probability to go below 10000. Lot of newspapers reported expectations of not-so-good fourth quarter results. All these scary news might have stopped some investors wanting to invest in Equity Funds, to adopt wait and watch strategy. The result was - loss of opportunity. Q4 results are good enough & FIIs made a killing by investing net inflows of over Rs. 5500 cr. last month at low levels. But I feel a bit relieved that at BrainPoint we advised you to quit at higher levels & invest heavily since 12500 levels of early March 07. 63% of our investors did take our advice and grabbed the opportunity. I hope you are one of them. Now at 13800-14200 levels the Sensex is neither cheap nor very costly. Corporate India is still going great guns & worries on that front have vanished atleast for sometime. So fundamentals are intact. FIIs would largely be responsible for the liquidity. If FIIs continue to buy heavily like in April, 1000 point rally to 15000 is not really difficult. Whereas if FIIs take a breather (which seems unlikely) a 1000 point dip to 13000 is also possible.
There is lot more to mint in Equities going ahead, but right selection of equity funds is going to be very very difficult. In last one year, the average return of the top 10 funds was 20%, whereas the average return of the worst 10 funds was (-)7%. The overall return of all equity funds averaged just 10%. So only the right selection paid off in last 12 months. Do you know Sundaram Select Midcap could manage just 4.23% return in last 1 year? Remember, in July ’06 we had recommended in our AURUM to quit this fund when everyone was recommending it heavily.
We are confident that going ahead we would successfully recommend you ‘FUTURE WINNERS’ in Equity MFs & would also recommend you to quit the funds at appropriate times. We provide this information to all those investors who invest through us regularly and sizeably. We have recently categorized our Equity MF investors in seven groups as per their investment amounts in recent times and would provide information in graded style via Aurum, graded SMS/Email groups made at our end and exclusive mailers. At BrainPoint, we strongly believe in rewarding our loyal investors. |
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