When the Market moves with Cricket.....

India won the series... Once again Sachin Tendulkar did the trick for India..The rest of Team solidly behind, India showed its resilence capacity.

Capital Markets also carried the same sentiments.

The statistics says that domestic funds are net sellers and FIIs are net buyers for quite some time. The huge IPO from Coal India Limited is expected to drain some liquidity from the markets in addition to what the RBI has done recently.

How should one approach the Mutual Funds in this kind of a scenario?

Those in SIP, should continue same. Any time is good for starting investing. Make a small investment and feel for yourself how it grows.. watch its progress related to a life need. That is basic human tendency one should recognize. Human beings require a target to go steadfast with the investments. Those who are in diversified equity funds with small cap portfolio may book some profit.

Another human tendency is to look at losses more seriously than the profits. Loss even if it is minor, it is painful. But a small profit makes him happy. Observe one's own behavior and try to logically look at your investment.

Another human tendency to be careful is to go by herd. Every body got profits,I did not get any.I am in the energy sector. I am left out of the rally. so let me switchover. one should embrace sectoral funds, if only have adequate knowledge about the sector. Otherwise always go with an index fund or diversified equity fund. Those who go for sectoral funds should have sufficient funds deployed in every possible sector not to get left out of a rally. So full diversification is possible for HNIs and not APL or BPL in sectoral investment strategy.


Another human trait is about being happy with a show of money. One gets a erroneous satisfaction when money is seen. But when it is divided among the different life needs, one will find that the available funds are not sufficient.To fight it out, one should follow the old idiom: horses for courses. Have separate investments for each identifiable life need.