Some wealth managers believe given the environment we are in, investors would do well to book profits if schemes have a high exposure to the NBFC sector.
MUMBAI: Investors in several equity mutual fund schemes took a hit on Friday due to a sharp plunge in share prices of YES Bank, Dewan Housing Finance Ltd (DHFL) and Indiabulls Housing Finance. These shares dipped as much as 29 per cent, 42 per cent and 8 per cent, respectively, resulting in net asset value (NAV) dipping by 2 per cent on Friday.
YES Bank and Indiabulls Housing Finance, which are part of the Nifty, are held by many diversified equity mutual fund schemes. The equity portion by EPFO also has been impacted. EPFO invests in equities through SBI Nifty 50 ETF and UTI Nifty ETF.
However, wealth managers believe there is no reason for investors to panic if they are holding diversified equity mutual fund schemes.
“Investors should not rush into decision. If you are invested in an actively managed diversified equity mutual fund, just leave it to the fund manager who will take an appropriate call,” said Vidya Bala, head of research, Fundsindia.com.
Some wealth managers believe given the environment we are in, investors would do well to book profits if schemes have a high exposure to the NBFC sector.
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“An investor having an exposure to these stocks in a fund which has an overall high exposure to NBFC, could book profits in such a fund and move to a better quality fund,” says Jignesh Shah, founder, Capital Advisors.
