If you are new to the avenues of investment and savings, it is best advised to approach a fund manager who can give you expertise knowledge about the market and guide you towards investing your funds into suitable investments which give promising returns. Fund managers are responsible to ensure that your investments have been made in the right avenues, bringing the element of confidence to your investments in the market. But with constant fluctuations in the behavior of the market, fund managers with the highest experience to function in volatile markets may find themselves in a tight spot, often burdened with the expectations of their clients. This does not always happen due to the investment follies of your fund manager, but may also happen due to various detrimental contributing factors like the performance of mid-cap or large-cap funds, when the net asset values of funds crash in the market, or the depreciating performance of equity funds in the market. Thematic funds liken banking and infrastructures have failed miserably in acquiring any margin of profitability with sectors like FMCGs and healthcare outperforming their benchmarks. These unpredictable stances of the market have made this period a do or die time for fund managers across the country.
As fund managers struggle to find the right ways of adjusting to the market and making profitability an order of the day, it all boils down to how well they manage the portfolios of their clients. Today, fund managers are wary of the influence made by the European debt crisis and high crude oil prices as they are a highly risky for the Indian markets. Its upside triggers are indicated to be controlled by a correction in price of crude oil, as it is a reflector of inflation in the country. This uncertainty is expected to continue for a little more time due to the troubles in Europe, which will not stop until stability is established on a global front.
Only with a fall in inflationary rates in the country, doubled with some ease in the monetary policy, will the hawkish nature that has been attributed to the market in recent times fall. Interest rates are also expected to decline leading to the bottoming out of the Indian market scenario. While fund managers continue to scout around for bargain stocks, the trend is moving towards mid-cap funds in the sectors of constructions, cement, metal, and upstream oil and gas companies. It would be interesting to note how far this trend will help the market pick up speed and acquire its long-lost position of being a profitable haven for investors.
As a prudent investor, it is important that you bear some things in mind, in order to avert yourself from serious cash strapped situations. Firstly, never save all your funds in one investment. This will damage your financial credibility since a major fall in the performance of that particular will pull down your financial dreams thereby forcing you into loses. Secondly, make sure you reassess and revalue your portfolio once every year. This will enable you to compare your funds performance with its benchmarks as it was predicted in the beginning of the financial year. This will give you an idea as to by how far has your fund deviated and prompt you to make necessary changes if required. Thirdly, ensure that your credit standing does not hamper your overall financial health. If in case you have borrowed credit like a personal loan or a car loan etc, make sure that you repay the installments on time without accumulating them. Doing so, not only are you benefitted with the asset for which you took the loan for but also leave you with the option for availing debt in future, if necessary, which will otherwise not be possible if your CIR has any defaults.