How equity MFs fared in January 2019?
Election year is known for its volatility and 2019 election won’t be any different. Due to this, many investors are now closely watching their portfolios and thinking of what to do in such scenarios. It has been witnessed that during the election year in the month of January the equity mutual funds don’t perform well. However, by the end of the election year, funds have given good returns irrespective of the government formed.
| Fund Category | Jan-19 |
| Large Cap | -1.10 |
| Large & Mid Cap | -2.71 |
| Multi Cap | -1.83 |
| Mid Cap | -4.15 |
| Small Cap | -4.22 |
| Value Oriented | -2.97 |
| ELSS | -2.24 |
| Sectoral-Banking | -1.40 |
| Sectoral-Infrastructure | -5.04 |
| Sectoral-Pharma | 0.24 |
| Sectoral-Technology | 6.08 |
| Thematic | -2.48 |
| Thematic-Dividend Yield | -1.85 |
| Thematic-MNC | -2.22 |
| Thematic-Energy | -2.99 |
| Thematic-PSU | -3.93 |
| Thematic-Consumption | -3.14 |
| International | 9.77 |
So, if we look at the above table, we can see that apart from pharma, technology and international MFs, every other MF categories have given negative returns. If we look at the average returns provided by the equity MFs in the month of January 2019, you will find that it stands at negative 1.45 per cent. So overall, equity as an asset class has not performed well in the month of January 2019. Though, this gives you a chance to rebalance your portfolio and invest more into equities as this gives you the opportunity to buy MFs at a low NAV. However, if you have a financial plan in place or have been saving for a certain goal then stick to it.