Mutual fund is a pool of money invested in stock market as per objective disclosed.There are different types of mutual funds available in the market and today we will discuss few of the funds for which you can think to invest…especially if you are moderate risk taker.
ICICI Prudential Dynamic Plan : As name suggests its ‘dynamic’ plan means it acts as aggressive fund or defensive fund depending on market conditions.If parameters suggests overbought market conditions then this fund turns into defensive and vice versa.There is one more fund of same fund house viz.ICICI Pru balanced advantage – this fund also works on nearly same principle.Though this is balanced fund taxation applied is as equity as hedging technique up to extent allowed by regulators is used to reduce equity exposure under overbought condition.So defensive,long term type investors can chose one of the fund.
ICICI -PRU Value Discovery Fund:As name suggests this is one of pure value funds which tends to invest in stocks available at cheaper valuations.Investing in stocks having cheap valuations have its own advantage as these stocks are already at cheaper valuations and there is lower probability that such stocks can beaten down in severe downside.Flip side of such funds is that selecting value stocks is quite difficult than finding Growth stocks.This fund is pure value fund and no space for any growth stocks.If you are looking for any good value fund then ICICI Pru Value Discovery is a good choice.
Franklin India Blue Chip :This is blue chip fund and as generally blue cheap stocks don’t participate in market euphoria …volatility is very much lower as compared to mid cap funds.One can not find highest rating nor top most performer but it has proven track record in falling markets against general market and peers in the category .So if any investor don’t like volatile fund this is a good choice.
Market risk can not be completely avoided but having good value fund and defensive fund bring stability within portfolio and with this view one can think about above mutual fund schemes.
