Excellent article which drove the nail on the head with no doubts. Thanks MR.BOND for shooting right at the target. As mentioned in the article I also did invest during the same 20 day period exited with an 14% absolute return for a client of mine.

1 week after your article , it seems RBI is preparing ground for CRR hike.Whats your advise for Magnum Income & Templeton Income Builder investors ( purchase July 13 ) & Birla Dynamic , SBI Dynamic & Reliance Dynamic ( purchase March 2013 ).

RIGHT ARTICLE at the RIGHT TIME. Thank you Sunil, thank you Wealth Forum

Hi Lakhi, You have answered your own querry. All you need to do is find out exit loads applicable for each of these schemes, then create 3/6/12 mth rolling returns of these schemes for past number of years. It will be advisable to include data of 2008-2010 in this as well as you wish to find out how these schemes perform under extreme circumstances. Hence, without commenting on qualitative aspects of these schemes on portfolio composition, credit calls, etc, this simple analysis will guide you to find out whether these schemes merit yours as well your investors" attention. Common mistake which the industry has been doing time & again is rely on point to point returns and recommend schemes based on that. Point to point returns are historical & hence the story might be over. In such a scenario, to recommend a scheme will be disastrous. Hope this answers your querries

well said sir

Appreciate your efforts to throw some lights on this issue...gr8 work

Gr8 Sunil. Fully agree with the view that staying invested till the exit load period SHOULD ideally give +ve returns. You also mention that additional purchases should be advised (for averaging out). Corollary that follows- This should be a good time for fresh investments. How strongly would you consider fresh investments at this point of time. Please suggest some funds for investment horizon of 12 to 20 months. I would prefer your comments on Reliance income fund, Reliance Dynamic fund, SBI Dynamic fund, HDFC high interest rate fund -dynamic plan. ( I m asking specific funds since u asked Sneha for fund names). Would request and appreciate your contact details to discuss some other matters. Thanks in the meanwhile. Lakhi

Right advise at the right time...Thank you Janardhan

Great Analysis and advise. Agree with the view.

Sneha, It is difficult to answer your querry without knowing which scheme, what YTM, what Avg Mat,etc. However, as an advisor it is our duty to analyse any scheme taking into account the exit load periods applicable to each scheme. What this means is that if exit load is say for 3 mths, find out daily 3 mth rolling returns, if it is for say 6 mths do daily 6 mth rolling returns analysis,etc. If any of these observations is negative, you need to rethink on investing your client money into such a scheme. Clients come to us for earning returns over a period of time. If however, after their investment period holding, if we go back saying sorry the scheme generated negative returns, we are not doing justice as an advisor. Hence, first rule ( besides many others) should be test the recommended schemes based on rolling returns matching exit load periods.

Sir, what if client doesnt have money to add on after his fresh investement in duration and accrual funds in feb 2013 and then june 2013, should he still stay invested and for how long a period for both feb and june investors?...

I Completely Agree with Mr Jhaveri viewpoint & as advisor we should make the Difference between Strategic & Tactical Asset Allocation even in Debt Asset Class. We shouldnt carried away with only figures / Returns of some days & as advisory process should remain calm , think logically in the periods of absolute optimism & pessimism ( which we are facing ).

Good insight Sunil. Thanks for sharing the data and information.

Ver good article. One of the best analysis and advice that I have seen in this crisis.

One of the best analysis and advice that I have seen in last 3 odd days. It clearly establishes how important an advisor and his advice can be.

good article

Thanks for your initiative advise which helps other lot. Your strategy is absolutely right according to current scenario. Wait for storm passes...

Thank u for this information concerning debt fund. News appearing in is creating a panic among the customers. Even I consulted many AMCs 4 proper guidance. I got similar advices .

Thank you sir for the information. Yes, you are right: "If one does not learn from their own mistakes then even God cannot help them"

Mr Sunil Jhaveri has given a nice thought which is important and very urgent during such a crisis Situation. Staying Calm till the storm passes is the key to survive the crisis. Thank you Mr Sunil & Mr Vijay of WF.

Thanks for this good information about debt fund

Thanks for giving nice advice at this point of time.

very good article I thanks My question is what about dnamic bond fund and also holding period?

Cest La Vie! MSJ as always Mr Bond, maybe we should have a golf round!!