Which mutual fund is suitable for new investors in falling stock market

 

• Hybrid mutual funds try to time the market using parameters like fund valuation, momentum etc.

After hitting a lifetime high on December 1, 2022, bears have taken full hold on Dalal Street, taking a major hit on mutual fund portfolios of equity investors. While the current slowdown will not have much impact on long-term mutual fund SIP investors, newbies may get confused about what kind of investment instrument would be suitable for higher returns.

According to investment experts, new investors who were waiting for the market to fall from record highs have a good option to invest through the hybrid route or through Balanced Advantage Funds. However, he added that hybrid funds try to time the market and hence a new investor should not invest all the money in one go. Experts have advised investors to invest in hybrid mutual funds in a phased manner by dividing the money into 6-12 parts.

Speaking on how hybrid funds are suitable for new investors in a falling market, Sahil Kapoor, CFA Product Manager, IIFL Wealth, said, “An investor should be driven by his long-term strategic asset allocation. Slight deviation is necessary. Largely priced but timing the market is not easy. Hybrid funds try to time the market using parameters like valuation, momentum etc."

Advising medium to long term Mutual Fund SIP investors to continue investing, Abhishek Dev, Co-Founder & CEO, Epsilon Money Mart said, “We suggest existing investors to continue with their investments if it is medium to long term. is to accomplish any goal in the long-term horizon."

Abhishek Dev advises new investors to invest in hybrid mutual funds, saying, "New investors who were waiting for a market downturn to plunge into the market can do well by taking the hybrid route."

When asked about hybrid mutual funds that can be looked at for investment, Abhishek Dev of Epsilon Money Mart said, "Investors can track hybrid funds such as: ICICI Pru Equity & Debt Fund and Kotak Equity Hybrid Fund Or Balanced Advantage Fund eg: HDFC Balanced Advantage Fund."

Unveiling the strategy of investing in hybrid mutual funds in a falling market, Sahil Kapoor of IIFL Wealth said, "A new investor can start by reducing his investments and gradually moving towards his strategic asset allocation over the next 6 to 12 months." Is. "