Everyone is talking about intraday losses this week, but nobody is discussing what is quietly happening to mutual funds. I hold Motilal Oswal Midcap Fund, very high risk category, and the current NAV is sitting at ₹99.69 with a 1 year return of minus 3.39%, meaning people who put lumpsum last year are actually in the red today. The fund heavily holds Technology, Retail, Consumer Durables and Capital Goods sectors, exactly the sectors that got hit hardest in this war tension period. Alpha ratio has fallen to minus 29.25, which means the fund is underperforming badly against expectations, sab mila ke bahut tough time chal raha hai.
Two countries are fighting somewhere, and I am sitting here watching my NAV quietly bleed every morning with my chai 😂 Yeh sirf ek fund ki baat nahi hai, entire midcap category is bleeding right now. Nifty Midcap index is down nearly 10% from January highs and when index falls this much, midcap funds fall even harder because these stocks are more sensitive to panic selling. FIIs pulling out money in last few sessions, crude oil shooting up, rupee weakening, sab cheez ek saath aayi and fund managers ka haath bhi bandh ho jaata hai aise mein.
But honest baat yeh hai, yeh waqt bechne ka bilkul nahi hai. 3 year return of this fund is still 75.43% and since launch it has given 895% return, that story has not changed at all. SIP investors should actually feel good, same units available at lower NAV now, your monthly investment is buying more than before. Unhe ladne do, hum SIP karte rahenge 😄 Stay invested, let the war noise settle 🙏