Interest Rate Reason Of Volatility

1. Trending Mutual
Fund Themes
01 Investment Gyan
02 Inspiring
Investment Story
03
INVESTMENT
KNOWLEDGE CENTER
A MONTHLY NEWSLETTER TO MANAGE YOUR PERSONAL FINANCE
June '22 was an action packed month....
Both SENSEX & NIFTY was highly volatile through out the month.
On the Global front , they observed that, the global economy continues to grapple with multi-
decade high inflation and slowing growth, persisting geopolitical tensions and sanctions,
elevated prices of crude oil and other commodities and lingering COVID-19 related supply chain
bottlenecks. Global financial markets have been roiled by turbulence amidst growing stagflation
concerns, leading to a tightening of global financial conditions and risks to the growth outlook
and financial stability.
On the Domestic Front, they observed that, data indicates a broadening of the recovery in
economic activity. Urban demand is recovering and rural demand is gradually improving.
Merchandise exports posted robust double-digit growth for the fifteenth month in a row during
May while non-oil non-gold imports continued to expand at a healthy pace, pointing to recovery
of domestic demand.
The Key reason for this sudden correction is said to be the rise in interest rates across world,
including India. Our central Bank also raised interest rates to control rising inflation on following
observations by RBI MPC’s ( Monetary Policy Committee) :
1.
2.
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2. The stake of foreign portfolio investors (FPIs)—often looked at
as the primary driver of bull runs and rallies in Indian stock
markets. This stake has consistently fallen over the past few
quarters with the December quarter witnessing a fall of 81
basis points (bps) to 19.7 per cent in NSE-listed companies.
Among the top 500 listed firms, FPIs’ stake fell by 65 bps to
20.9 per cent. This was the fourth consecutive quarter that
saw a dip in the stake held by foreign investors—now at its
lowest level in nine years. In terms of net flows, 2022 has seen
FPIs make net sales of nearly $17 billion till May 22. And they
have been net sellers since October 2021.
Foreign institutional investors' share of Indian equities has
hit a multi-year low of 20% . The last time the Indian market
witnessed such exodus was in 2008, during the U.S. sub-prime
crisis, when FIIs kept selling for 7 consecutive months.
While the global stock markets and the pack of emerging
markets have seen heightened volatility with a clear
downward bias—on the back of a mix of macroeconomic and
geopolitical concerns (with foreign investors offloading shares
in huge quantities across markets)—the Indian markets have
stayed resilient. Analysing the data reveals that this resilience
is ‘Made in India’, with domestic financial institutions and retail
investors emerging as a strong counterforce to foreign
investors.
I know, its not easy to ride the market volatility but luckily we
have SIP ( systematic Investment Plan) in Mutual Fund,
which converts such volatility into opportunity . Read more
about such opportunities in this special issue of our
Newsletter.
Domestic Institutional Investor's buying overpowered the selling
of FIIs and FPIs. Current resilience in the Equity Market is only on
the back of domestic institutional investors and also the average
retail investor.....read more about this new strength of Indian
Equity Market !
Mr. Vikas Didwania
Managing Director
Shrambal Distributors
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Month Ending, June 2022

3. Move # 1 : Add Units in SIP Folio
Get greedy to accumulate more units in your SIP folios. Add funds to your
existing SIP folios - whatever amount you can afford ! Minimum Rs 500/-
only.
Say you are running an SIP of Rs 2000/- per month in xyz fund; then you
should add Rs 2000/- or more into same scheme to get the benefit of cost
averaging.
As you know, you will get higher units when NAV / Price is down . Generally
investors become fearful when they need to act greedy - and vice a versa.
Month Ending, June 2022
3 SMART MOVES to take in this Market !!!
Chapter
01
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Move # 2 : Invest in Old Hero's
Follow the wisdom statement - Old is Gold !
Pull out the list of India's 20-25 Years old Flagship Equity Funds and invest some funds in the name of your
choice. These funds had always been a great performer but generally investors ignored these funds in rising
market due to their higher valuation. Now is the time to grab the units of such schemes at good discount, look
at the list of few of these Good, Old and premium schemes :
Move # 3 : Invest in Business Cycle Funds
Grab the unit of most beaten up sector which is expected to recover faster with the change in
cycle. As a layman you can find many such sectors like- IT, Banking etc, which have been
corrected by more than 10% . Thus it becomes difficult for a retail investor to select the most
promising funds out of these lots.
The solution is 'Business Cycle Fund' - this is suitable for all investors who have advanced
knowledge of macro trends and prefer to take selective bets for higher returns compared to
other Equity funds .
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4. Market Indicators
FOR MONTH ENDING JUNE 2022
Month Ending, June 2022
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5. Month Ending, June 2022
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6. Month Ending, June 2022
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Note : This is not a single scheme Fund Performance. This is an Avg. performance of all the funds in same category across
the MF Industry. However, performance may be different for different scheme under same category. Please check with your
advisor for the TOP performing funds in above category for the last one year.
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7. Disclaimer : The Schemes and their result shown on the table above are the real values. However, this article is
not an endorsement or advice for investing in these schemes, directly or indirectly. This is in no ways a
recommendation for any scheme also there is no guarantee that similar performance will be repeated in future
also. Investor should choose the SIP schemes after evaluating their risk suitability or investment targets.
Mutual Fund investments are subject to market risks read all scheme related documents carefully.
This is a true testimony of Mr Ravishankar, aged 69 Yrs. Around 10 Years back when we met him, Mutual Fund
was never in his list of preferred investment choice. Today when you will meet him, he will appear as a greatest
fan of Mutual Funds. At his age, he is actually so excited about Mutual Funds that he has become an unofficial
Brand Ambassador for our company .......what changed the opinion of Mr Ravishankar ?
The great returns in Mutual Funds or anything else ?
Of Course , Returns is one of the factor but there are many other factors which converted Mr Ravishankar from
an anti MF investor to pro MF ! During his last 10 Yrs of investment journey, Mr Ravishankar learnt about the
strong regulation which governs Mutual Funds, he learnt about the transparency and professional fund
management within a pre-defined expense ratio. Most importantly, he learnt that - VOLATILITY is the
OPPORTUNITY, if you are a disciplined investor.
I am just sharing his Investment snapshot which he did around 10 Years back, as a gift to his 3 Yrs Grand
Daughter :
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Inspiring
Investment
StoryOf Mr. Ravishankar
As you can see in the table above, the investment of Rs 5 Lakhs in MF is more than double of all other
traditional investments like- FDs, Gold and PPF. This performance of Mutual Fund schemes completely
changed the though process of Mr Ravi. He learnt the biggest lesson of his life , which he is preaching
others too - " Volatility is not harmful, if you have adequate risk appetite and tenure on your side"
As a MF Distributor, we also train all our investors to pick the investment product according to your Risk
appetite and investment tenure. Mutual Fund offers products for all type of Risk appetite - Low to very
High . Just discuss your plan with us and invest in the most suitable product for your Goals.
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8. Start early Stay Invested Maintain regularity Long Term Investment
Month Ending, June 2022
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POWER OF
COMPOUNDING
WHAT IS COMPOUNDING ?
Power of compounding is essentially an act of ‘adding interest on
interest,’ i.e. the amount of money you invest will generate earnings
from both the initial principal amount and the accrued earnings from
preceding compounding periods.
How to make it work for you ?
Start early and avail
the advantage of
Compounding and Fix a formal discussion session
with us we are here to help you.
Just call at
9830084878

9. Month Ending, June 2022
Disclaimer : Mutual Fund investments are subject to market risks. Read all scheme related documents
carefully. The NAVs of the schemes may go up or down depending upon the factors and forces affecting the
securities market including the fluctuations in the interest rates. The past performance of the mutual funds is
not necessarily indicative of future performance of the schemes. The Mutual Fund is not guaranteeing or
assuring any dividend under any of the schemes and the same is subject to the availability and adequacy of
distributable surplus.
Note : We are an AMFI registered Mutual Fund Distributors. We work closely with our customers to help them
achieve their Financial dreams by way of savings motivation, correct estimations and quick investment
execution. We help you select the SIP according to your risk profile and investment tenure.
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25, Dwarik Jungle Road, Bhadrakali, Hooghly-712232,
West Bengal.
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Floor, Room No 302, Kolkata-700007, West Bengal
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Call : +91-98300-84878
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