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Time in the market is important than Timing the market
Recently, market has seen a correction of more than 1200 points due to the combined impact of Demonetization and US Presidential Elections. There may be uncertainty in the market in the short term over the impact of these events. But one thing which has not changed is the long term view on Indian economy. In the long term the fundamentals along with the GST impact will drive the markets.
We have analyzed the performance of Diversified, Largecap, Midcap and Smallcap schemes vis-à-vis the benchmark indices across 3 time horizons. Below are the details -
| Analysis period - 24th July 2014 to 15th Nov 2016 (Sensex - 26000 to 26000) | ||||||
| Category | Index | No of Schemes | Index Return (%) | Average Return (%) | No. of schemes outperformed | Outperformance in % |
| Diversified | Nifty 500 | 16 | 10.15 | 28.73 | 16 | 100 |
| Largecap | S&P BSE Sensex | 21 | 0.12 | 19.22 | 21 | 100 |
| Midcap | Nifty Midcap 100 | 21 | 30.88 | 38.68 | 13 | 61.9 |
| Smallcap | S&P BSE Smallcap | 4 | 16.35 | 53.23 | 4 | 100 |
| Analysis period - 13th April 2015 to 15th Nov 2016 (Sensex - 29000 to 26000) | ||||||
| Category | Index | No of Schemes | Index Return (%) | Average Return (%) | No. of schemes outperformed | Outperformance in % |
| Diversified | Nifty 500 | 16 | -5.07 | 1.97 | 15 | 93.75 |
| Largecap | S&P BSE Sensex | 21 | -9.43 | -1.1 | 20 | 95.24 |
| Midcap | Nifty Midcap 100 | 21 | 4.68 | 3.61 | 9 | 42.86 |
| Smallcap | S&P BSE Smallcap | 4 | -0.34 | 8.65 | 3 | 75 |
| Analysis period - 8th Sept 2016 to 15th Nov 2016 (Sensex -29000 to 26000) | ||||||
| Category | Index | No of Schemes | Index Return (%) | Average Return (%) | No. of schemes outperformed | Outperformance in % |
| Diversified | Nifty 500 | 16 | -9.5 | -7.87 | 13 | 81.25 |
| Largecap | S&P BSE Sensex | 21 | -9.44 | -1.1 | 15 | 71.43 |
| Midcap | Nifty Midcap 100 | 21 | -9.16 | -7.67 | 19 | 90.48 |
| Smallcap | S&P BSE Smallcap | 4 | -7.9 | -6.76 | 2 | 50 |
The above analysis shows that it is the time-in-the-market that matters and not the timing of the market. Higher the investment horizon, the better the outperformance over the benchmark indices. The reason behind this is that Fund Manager can only beat the benchmark if he gets enough time to manage the portfolio. So, give enough time to your investments to perform better.
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21 Nov 2024 | Our Article |  |
Recently, market has seen a correction of more than 1200 points due to the combined impact of Demonetization and US Presidential Elections. There may be uncertainty in the market in the short term over the impact of these events. But one thing which has not changed is the long term view on Indian economy. In the long term the fundamentals along with the GST impact will drive the markets.
We have analyzed the performance of Diversified, Largecap, Midcap and Smallcap schemes vis-à-vis the benchmark indices across 3 time horizons. Below are the details -
The above analysis shows that it is the time-in-the-market that matters and not the timing of the market. Higher the investment horizon, the better the outperformance over the benchmark indices. The reason behind this is that Fund Manager can only beat the benchmark if he gets enough time to manage the portfolio. So, give enough time to your investments to perform better.
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