Tuesday, June 26, 2018

Manage market volatility with multi-cap funds..

Multi-cap funds are diversified mutual funds which invest in stocks across market capitalization.
Amidst all the on-going political events in the world, markets are the most affected and hence it becomes difficult to anticipate market movement. In order to stay securely invested, Multi-cap funds could be the best bet for an investor. Takes a look at multicap scheme, which have performed better and have been able to sustain their performance. Here is a research report of one of the Multi-cap fund.
 
L&T India Value Growth Fund is an open ended scheme launched in January 2009. This belongs to a Diversified category as the fund has exposure across large cap, Midcap and Smallcap.

Portfolio Analysis :As per the sectoral holdings Banking/Finance have been most favoured sector for this fund as it is contributing 19.54% to the entire portfolio followed by Oil & Gas Sector.

Top Holdings and Sector Allocation for this fund are shown below: 


Risk Profile: This fund belongs to the high risk category given complete exposure only to equity. However, by way of SIP the risk can be reduced and also prudent asset allocation across different scheme including debt and balanced fund can provide optimum mix and reduce the risk. Also as we think long term trend for Nifty is on upside this fund offers good opportunity to ride the next wave on upside.

Technical Perspective: The above weekly chart of NAV suggests that since mid-2013 this fund has showed impulsive rise. The impulsive move from 27 to 40 suggests that long term trend for this fund remains on upside. In the start of 2018 NAV has competed minute wave 3 and since then wave (3) is on-going. One can continue to remain stay invested or can start investing through SIP as this fund is in impulsive wave (3). Looking at the Nifty, some pressure cannot be ruled out but it is advisable to stick to the on-going trend. Currently wave 4 of (3) seems to be on-going.

Investment Perspective: One can continue to invest in this fund in staggered fashion.
Many a times investing in multi cap funds becomes complex. In case you don’t possess enough financial knowledge and are finding  it too difficult to understand or  To know more about other prevailing Multi-cap Funds Click here

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