Mutual Funds gain 31% in May

Equity Diversified Mutual Funds of India have gain 31% in May 2009 which is the highest gain in single month in last 17 years.

Actively managed Equity diversified mutual funds in India have posted their best monthly gain in 17 years with a majority beating the benchmark index in May by a sharp rally in their mid-cap and small-cap bets.

Around 6 out of 10 mutual funds outperformed the Sensex by almost 30%.

Equity Diversified mutual funds on and average held around 14% of their Assets in cash but in the April end, they have invested this money into the market when the Sensex was around 8,000 level.

What a Timing…!!!

I personally Invest in four mutual funds which also outperformed the Sensex. In short, long term investors win the race. I know several people who had liquidated their portfolios at the level of 8,000 hoping that the Sensex will further go down and touch the level of 6,000 and they will invest their money at that level.

One of my very old friend had liquidated his stock portfolio at the Sensex of 8,000 which he has build at the level of 18,000-21,000. He was arguing that, This time the market is different because there is a recession in USA so the Sensex will further go down below the level of 8,000. And when the Sensex will touch the level of 6,000, I will invest my money.

Actually what my friend wanted to do was, He was trying to time the market. I advised him not to do so but he did not listen to my advise. None of us knew that the level 8,000 itself was the bottom of the market. In fact, no one in this world knew this.

In short, Long-term & Disciplined Investors win the race…!!!