If you are in mutual funds, you do have some knowledge about different funds. Talking about Aditya Birla Mutual Funds, the goals of the schemes are long term growth of capital, even via investment in equity & even equity related instruments across market cap (large, mid & even small) companies.
Well, if you are an investor and you are looking for an equity fund that would be apt investment proposition across different market cycles and with as a minimum of three years investment horizon, you should invest in this fund. Anyhow, like any other funds, there has been fluctuations in these funds too.
You should check the standard Deviation value. It gets you an idea about how volatile fund returns has been in the past three years. Lower value simply showcase more predictable performance. So in case you are comparing 2 funds (just say Fund A and Fund B) in the same type of category. In case Fund A and even Fund B has given nine percent returns in last three years, but the standard deviation value of the fund a is lower than Fund B. So you can mention that there is a higher possibility that Fund A is going to continue giving similar returns in the times to come also whereas Fund B returns may differ.
Fluctuations: Things an investor should do
If you hear the experts, if you are an existing investor, then you should just acquit yourself with the term volatility once again. There are numerous investors who are anxious because of the phenomenal returns they have overall made in the recent times. Such investors are quite anxious that the rotations may rob their gains. The point is simple, being one of the investors you should revisit your early lessons and that will reassure you. The point is simple, no matter aditya birla funds or any other funds, fluctuations are meant to come time and again. You have to be careful about what is happening and how the graph can be expected to unfold.
Seasoned investors should always remember markets moving only down for some months. In fact, market experts even say whenever the market experiences a bull run like the recent past a steep kind of correction in the market is quite probable . Then the market gets somewhat nervous and swings massively until there are strong clues. And this is something that works for all sort of funds including the aditya birla.
As for guarding your returns, taking the money out of the market and then getting in again at a time once the market is ready to simply take off is a definite way. Well, that could work for you only in case you can time the market well. In case you remember your lessons that it is nearly impossible to time the market, just stay glued to your asset allocation and then continue as per your investment plan.
Conclusion
To sum up, whether you have Aditya Birla Sun Life Flexi Cap Fund or any other funds, just take it easy. Stay prudent in your investment and don’t let the fluctuations scare you.
