An ETF combines the valuation feature of a mutual fund, which can be purchased or redeemed at the end of each trading day for its NAV, with the trading feature of a stock, which trades throughout the trading day at prices that may be substantially more or less than its net asset value.
Clarifying many Stock Market and Mutual Fund Terms Like NAV, NFO, SIP, SWP, Index Fund, Entry Load, Exit Load, Dividend and many more …
An investor who may like to invest in banking stocks presently will be limited by the number of stocks he can buy. On the other hand, a combination of banking stocks and a banking fund can do wonders both in terms of diversification as well as potential to benefit from the possible rise over a period.
Equity investing requires skill both in terms of stock selection and monitoring the progress of the companies included in the portfolio stock prices move to anticipate events as well as reflect the current events.
In my opinion, my friend should try to figure the reason for the poor performance and to compare the schemes with his peers. It is a known fact that the market has dropped around 30% from its peak levels and nearly all stock investments have suffered to some extent.
We have certain historical evidences to analyze natural funds. For example: Reliance Mutual fund was launched in February, this year. It was called the Reliance Natural Resources fund. There was an over whelming response from investors. The scheme attracted about Rs. 6000 crore in subscriptions. Also, there was the DSP ML Natural Resources and new energy fund which was launched in April and had managed to amass around Rs.275 crore from the investors.
This is very hard time in the equity markets for the world and so I just thought I would share some of the bet funds in its sectors and my Disclaimer is I have investment in majority of them discussed below.