Which mutual fund is suitable for new investors in falling stock market. | Jobs Vox

After rising to life time on December 1, 2022, the bear will take a hit on the equity investors’ portfolios of mutual funds as they are fully booked on Dalal Street. Although the current downturn will not have much impact on long-term mutual fund SIP investors, fresh investors may be confused as to which investment vehicle will be suitable for maximum returns.

According to investment experts, new investors, who have been waiting to jump the market from highs, have a good option to enter into mutual funds or mutual funds. However, he said that a hybrid fund tries to time the markets and hence fresh investors should not invest the entire amount in one shot. Experts have advised investors to invest in hybrid mutual funds in a staggered manner by allocating their money between 6-12 units.

Says Sahil Kapoor, CFA Product Manager at IIFL Wealth, on how hybrid funds are suitable for new investors: “The investor should be guided by a long-term strategic asset allocation. A slight deviation from their strategic allocation is warranted by the markets. They are rich in value but market timing is not easy. Hybrid funds try to time the market using parameters like valuation, momentum etc.

Abhishek Dev, Co-Founder and CEO, Epsilon Money Mart advises medium and long-term mutual fund SIP investors to continue investing, “We suggest existing investors to continue investing if they want to achieve any goals in the medium and long-term horizon.”

Referring to new investors, Abhishek Dev advises them to look into hybrid mutual funds, “For new investors who have been waiting for markets to fall, to tap into the market, it might be a good idea to take the hybrid route.

When asked about hybrid mutual funds, Abhishek Dev of Epsilon Money Mart said, “Investors can go for hybrid funds like ICICI Pru Equity & Debt Fund and Kotak Equity Hybrid Fund or Balanced Advantage Fund like HDFC Balanced Advantage funds.”

“A new investor may be better off staggered investments over the next 6 to 12 months and gradually build up to her strategic asset allocation,” said Sahil Kapoor, partner, IIFL Wealth, while unveiling the investment strategy. .”

Disclaimer: The opinions and recommendations presented above are those of individual analysts or brokerage/finance companies and not of Mint. We recommend that investors check with certified professionals before making any investment decision.

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