Category: Miscellaneous

26 Jan 2023 07:57

Joined:	20/04/2018
Level:	Gold
Points:	55771

Points:	5

Churning in the Mutual Funds is now on

Whenever there is a slowdown in the economy, the demand foe products and services takes a hit. The profit margins are down. Real estate suffers. The organized retail sector and even the massive online retail trade, that has now grown exponentially in the past few years, will be under pressure.

There are some indications that this has already started happening. However, a number of new players, in the form of cheaper substitutes, crop up and there is a big demand for anything that is cheaper than the branded stuff. In the big cities, one always finds the mobile cart vendors selling cheapest food at prices that are so affordable by everyone, for example. This is bound to happen.

The Mutual Fund Sector is likely to be hit very soon. The funds from the big middle class is likely to slowdown. People might go in for the safest banks. When this happens, the results will start showing. Hence, it is wise to pull out when the investments are just near the par value now and come back when the good times start to happen.

The IT guys have already been affected. Those passing out in the year 2023 are also very likely to find the going very tough. Safety of funds is now more important than thinking of anything else at this point in time.

#769031

26 Jan 2023 08:46

Joined:	25/11/2014
Level:	Diamond
Points:	43292

Points:	4

More or less, we are facing recessionary trend currently and the same can be felt in the wake of less opportunities for growth of the youngsters in the different areas.
This year might be even tough for the fresh computer engineers to get a right job in the IT sectors.
Though mutual funds are floating different schemes to woo the investors, but there seems to be lookwarm response from the side of investors since they feel insecured with the current market trends. They would be more happy with the bank - investments even though such investments don't protect them from inflation.

#769033

26 Jan 2023 11:51

Joined:	10/12/2016
Level:	Diamond
Points:	109190

Points:	5

There was a good rise in the share market during the last year and many people during that time invested heavily, especially in mutual funds. Generally, It is seen that people invest in mutual funds when the share market is going well.
If for some reason the market crashes or comes down significantly then the mutual funds are also affected badly because mutual funds invest in shares or a combination of shares and debt instruments. In such an adverse scenario it is prudent thinking to take out the investment from the mutual funds and park it in the safer zones like bank FDs and then wait for an opportune time to enter the share market again when the economy starts to lookup and the situation becomes conducive for share market investment. Due to job cuts in the IT sector, unemployment will further increase and one should tread very cautiously and carefully in the share market or mutual funds territory.

Knowledge is power.

#769040

26 Jan 2023 15:33

Joined:	02/06/2009
Level:	Diamond
Points:	145553

Points:	5

When we are investing our money in areas like mutual funds or shares etc, we should be on watch constantly. At the same time, we should be discussing with some known financial analysts so that we will be getting some idea about where to invest and when to invest and when to change. In such a case, only our money will be safe. My brother-in-law is a chartered accountant and was the director of finance in a private company. I discuss this with him. in case I want any suggestions or feedback about these investment plans.
I feel when the value of the fund is diminishing instead of withdrawing our money from there, we can invest a little more there as we may get more units and we can try to remove from there when the value is high. But people who depend on the money that is being realised by these investments should not take such risks and they can park their money in FDs in Banks. These days there is an increase in FD interest rates.
All senior citizens should be careful and invest wisely. Otherwise, for their remaining lives, they may have to depend on their children.

drrao
always confident

Churning in the Mutual Funds is now on

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