Monday, August 8, 2011

Stock Market Update


A reminder for the email which we had sent on Tuesday, June 14, 2011 

Click on the link below for flash back

Stock Market Crash Possible Soon?


Now register your comments is this the right time to enter the market?? 

Your guidance to us,  especially to IFAs in Tier II and Tier III cities will be highly appreciated


1.  Should we enter the Equity Fund in FULL?
                  
                   IF yes Diversified Equity or Sector Specific?
                   IF Sector Specific - What Sector?

2.  Is STP is the better bet now?
               
                   IF yes - Weekly or Daily or Monthly

3.  Your Views on Interest Rate movement? 
                
                   Will it further go up?
                   IF yes - Max how many bips

8 comments:

Shankar S said...

1. No, not in full apart from global issues like talks of Italy defaulting etc., local environment is also bad thanks to inflation. The slowdown in demand locally would hurt too. Hence not advisable for lumpsum purchase. Lumpsum can be considered in a severe crash scenario but chances are that clients may not want to buy at that junctre.
2. STP is a better bet, weekly or monthly is preferable.
3. Interest rates not likley to go up, infact the case for bond funds- short term bond funds for risk averse and long term bond funds for those who can stomach some volatility in NAV has become stronger.

Unknown said...

1. probably the best time to enter markets thru diversified equity funds only. I feel 60% of surplus in hand should be moved in immediately.

2. STP could also be an option, but look at weekly or daily option, as there may be a releif rally very soon. But, if someone has lumpsum, could easily park in bulk than STP.

3. For sure, interest rates will move up till inflation at comfortable levels as per governer. I feel another 50 to max 75 bps upward movement is possible.

Once again, use such sharp corrections to enter markets for long term investment only and not for short term trading!!!

Akhil Chaturvedi
Daiwa Mutual Fund

Anonymous said...

yes EF

Atul Puri, Investment chambers(india) said...

Yes,this is right time to enter in markets through equity funds,25% to 50% of surplus should be invested with the time horizon upto 12 months to 24 months.
This is also the good period to balancing your old funds.
2 STP Is always the best tool to earn in unstable market.
3. Interest rates will expected to move up till inflation comes down

DreamNRealise said...

1)30% of the funds allocated to equity should be deployed to well diversified equity funds only.If u are an aggressivce investor with higher risk appetite, u may think of allocating a portion of this to Tech funds.
2)STP is a very good bet as mkts would be volatile atleast for 6 months to a year.Weekly/daily both ar very fine as range bound mkts swinging like a pendulam in shorter periods.
3)Interest rates will go up atleast by 10 bps.

ravendra said...

yes it is best time to enter on regular basis as market pick up little-2

KAMAL VERMA said...

KAMAL VERMA...MARKET IS NOT FULLY CRASH...HOPE FOR 15000.. WE MAY START
STP FROM THIS LEVEL TO DEPLOY 70% IN COMING SIX MONTH ON WEEKLY/DAILY BASIS.. WITH HORIZON 30-36 MONTH. RBI MAY INCREASE.25 RATE HIKE..

L. Samraj said...

No one can say how deep the cut will be as conditions are not conducive now. So better invest through STP weekly in a balanced fund or equity diversified.
There may be a possibilty of interest rate going up by a notch due to stubborn inflation.