Mutual Funds: Why Are My Mutual Funds Going Down?
Parag Parikh Flexi Cap Fund: Rs 10,000
Tax Saving Fund (SIP pack): Rs 5,000:
Axis Long Term Equity Fund
Long-term equity funds
DSP Tax Savings Fund
Kotak Tax Savings Fund
It was going well the first few months and suddenly for the last six months everything is collapsing:
Parag Parikh Flexi Cap Fund is down 34%
L-axisThe long-term equity fund is down 24%
ICICI PRudential Long Term Equity Fund is down 10%
DSP-TAxis Saver Fund is down 11%
Kotak Tax savings fund is down 10%
Please let me know what is the possible reason for this downward movement and what can I do to fix it?
You invest in equity UCITS which invest in the stock market. As you may know, the stock market is going through tough times – inflation, rate hikes, foreigners selling Indian stocks… there are many factors influencing negative sentiment in the market. Now can you do something about it? Well, there’s not much you can do about it. When the entire stock market is affected, even your stock mutual funds will be affected. You can first check if you are investing in the right schemes. For example, the Parag Parikh Flexi Cap Fund and Tax Saving Plans are flexible funds that invest in all market capitalizations and all sectors. Flexible capital plans are recommended for moderate investors to achieve their long-term goals. If you have a moderate risk profile and an investment horizon of 7 years, you can continue with your investments. Most tax saving plans also follow the soft cap strategy. Continue to invest if they match your investment objective. If they don’t match your profile, you should review your investments.
Don’t stop investing in equity mutual funds in a bad market phase. You risk losing an opportunity to maximize your wealth. If you don’t have the basic knowledge to invest in mutual funds, seek the help of a reliable mutual fund advisor.