When the markets were at their peak there were a spate of new scheme launches. It must be understood that timing the market is a difficult proposition. It is very difficult to catch the tops and the bottoms. Nevertheless, Mutual funds should be very careful, especially when they are launching equity schemes so that if there is a downside in the market, the investor is not caught on the wrong foot and in the process does not loose confidence. As the markets have corrected significantly from their peak levels since February 2000, launching an equity scheme would certainly be advantageous to the investor as the downside from these levels look minimal and many scrips are showing attractive valuations for investment.
Serial plans launched by some mutual funds are an extension of the existing debt funds.
This is done to facilitate the investor and give him investment opportunities that meets his needs. Therefore we believe that this complements the existing debt funds. No, it is heartening that majority of the investors agreed to reinvest the dividend in the fund. Tata Mutual Fund's equity schemes unlike that of other mutual funds do not levy an entry load. Instead they charge a contingent deferred sales load.