Tata India Consumer Fund on a Freefall; MySIPonline Unveils A Way Out to Recover Losses

Tata India Consumer Fund has been enduring rough market condition leading to downtrends in the NAV. This unpredictable fall has been distressing for the investors who aimed for consistency while investing. The quick-witted experts at MySIPonline have responsibly come up with a pathway to oblige the investors with an ultimate solution.

Consumption sector is counted under defensive segments of the economy for trading purpose due to consistency in demand. However, the slowdown in supplies has harshly affected the income for India?s giant consumer players like Hindustan Unilever, ITC, Dabur, etc. This has directly vandalized sectoral mutual funds which deal with consumption equity stocks.

Tata India Consumer Fund has been affected the most as the top holders in the fund have suffered steep downtrends. The YTD returns till date is nearing to -10% while the average of the peers is close to -5%. The plummet for 2019 so far, however, looks better when compared with the trailing returns of last 1 year. Does that mean it is a dreadful scheme for the investors?

?Sectoral mutual funds involve high risk as these schemes are highly turbulent to trends of the concerned industry. Counterpart stocks behave similarly under a particular course which leads to a sharp rise and fall of a portfolio that involves stocks from a specific sector. Market conditions are highly influential for sectoral mutual funds and for the same reason we recommend such schemes only to the experienced investors? explained Mr Virendra Ranawat, co-founder of MySIPonline.

Tata India Consumer Fund has been facing a tough time but it has the ability to perform better than any other scheme under suitable market conditions. It has delivered the best trailing returns in the category for last 3 years but the for the last few months, it is underperforming due to unfavourable market conditions.

The Solution

According to the financial experts at MySIPonline, the market conditions for the upcoming months are unpredictable. Impaired crop prices, prospects of weak rainfall, higher fuel prices, and many more obstacles would be a challenge for the upcoming government. How the new government tackles the condition would be a thing to keep an eye on. Fresh investments can be avoided for a year or until correctness in witnessed in the trends. However, if the market for consumption stocks surges, significant gains can be garnered from the scheme if a high-risk investment is made at current levels.

The consumption sector in a fast-growing economy like India has a prosperous prospect. Those who have already invested can look for opportunities to buy at lower levels or can continue the SIP for long term. Making an exit at current levels must be avoided and unsuited investors can wait for the corrections to make a redemption.

For personal assistance, investors can connect with the financial experts to make a better decision regarding investment in Tata India Consumer Fund.

Company :-MySIPonline

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Url :- https://www.mysiponline.com/mutual-fund/tata-india-consumer-fund/mso2617