Mutual Fund stops 28.08.20

Stops in Pharma Funds are getting tight, need to cautious on those investments. On the other hand, as the broad market is getting into further bullish strength, all other funds are doing good, adding more profits as well locking them too.

With the breadth in the markets moving into many sectors along with Pharma, IT, Auto, Metals. Now Power and Finance sectors have turned bullish. This broad strength in the markets is likely to take the indices to their new high’s. It is good time to be invested in Equities. More exposure to Mid and Small caps would be a good option as these segments are likely to give higher returns.



Multi bagger stocks of 2020. Like FAANG in the US markets, we have JALSA for India. A name coined by Sunil Singhania, was a group of Pharma stocks that have given above 200% returns in 3 to 4 months post the COVID crash.

System-based approach to investing has helped us identify & invest in these multi-baggers. Someone wanting to invest in these stocks, please evaluate risks and only then take the exposure.

MF Trailing Stops 21-08-2020

As the whole market is moving up now, all the trailing stops in Mutual Fund schemes have been moving up and locking profits. Stop losses for the funds tracked and discussed in our You Tube Channel are published on weekly basis in this blog.

The use of stop losses in Mutual Funds is for conservative investors. Investors, those who have clear defined objectives on their investments.

If you want to increase the returns on your investments with defined risk like say, you are ok to take a 5% risk on your capital and the rest you want to be protected. In such conditions, out of your total investments, find the 5% amount.

Using the risks given for each scheme, calculate how much you can invest and set aside only that much of capital for the fund. As long as the fund is going up, hold the investment. Stop loss will be trailed as the NAV climbs up.

When the fund performance turns and hits the stop, move out & book profit.

Using this strategy, you will be able to manage your investments more prudently.

Let’s take an example. If an investor wanted to take 5% risk & in April he had invested in SBI Pharma fund, which carried a 5% risk. Today, in 3 months from the time we took the position, this fund has locked 17.40% gains.

By taking a 5% risk on the capital, this investor has made 17.40%. This strategy helps investors to maximize gains with conservative approach. In case the investment had turned sour, he would have only lost 5%. The balance capital is safe.

In this process, investments should be taken only when opportunities are available. When there is no opportunity, park the funds in debt funds to have returns that are above bank FD’s.

Money going out of Equity MF


Retail investors taking money out of Equity mutual funds. Not a surprise, as it was expected when the markets bounce back from lows. Sad part is that, they came with big dreams, stayed invested for 3 years, moving out with loss. Unfortunate that, their impatience is letting them participate in the next very big move that our market will have in the coming years.

MF Stops 14-08-2020

MF Stop losses for 14th Aug 2020. As the market is going up, all the funds are locking profits on the go.

Our Pharma Funds stops have made tremendous gains. For example, SBI Pharma which we had been tracking since recommendation has locked 16.70% gains so far. This pharma fund is presently carrying 4.42% risk on its NAV.

Something different is happening in the markets today. Risks on Mutual Funds which used to be at 5% have now got down to below 4.50%. What this means?

Volatility is dropping in the markets. This is advantage is the trend continues in a smooth manner. On the other hand, if the tide changing direction. We will have exits coming on all funds soon.

Invest with caution.

ABSL Pure Value Review & Pharma Funds Update


ABSL Pure Value fund, one of the investor favorite funds, now gaining momentum. It has 43% exposure to top-performing stocks, helping it gain 21% in the last 3 months. One can look at investing in this fund, which is carrying about 4.5% risk on today’s NAV.

Pharma Funds continue their dream run, having added 2% more profits to their already locked 15% profits. Risks on MF NAV’s have started coming down from 5 to 4.50%, this is both a caution and an advantage. Play safe.

IDFC Sterling Equity & Pharma Stops


IDFC Sterling Value Fund, one of the top-performing fund in the Value category. Having 37% exposure in Pharma, Auto, IT, Metals & Cement. 10% in Cement is helping this fund outperform the markets. Fund has begun its new bull journey, one can think of investing in this fund.

Pharma Sector has made a big leap, all the funds have locked, 15% profits.

Big Picture – Bulls on the way


Big Picture analysis of the markets for 7th Aug 2020. All indicators show signs that Bulls are on their way back to the way back to the markets. Market gets into neutral zone, which shows that, caution is the need of the hour for trend followers. Mean reversion systems to work perfectly well in non-trending zone.

Mutual Fund Stops – 07-08-2020

Stop loss values for Mutual Funds tracked and recommended by us.

Pharma funds have reached 15% lock in profits. Trend is likely to continue for few more weeks. Value funds are leading with good returns now due to the big drop that facilitated them to pick best bargains. When value funds perform, they give very big returns.

Use stop losses for all your positions, it helps protect your profits as well as your capital.