Investment Alert: 6 Mutual Funds Down Up to 20% From Their 52-Week High NAVs

A mutual fund is a company that collects money from investors to buy securities like bonds, stocks, and money market instruments. from 659 equity mutual funds, six equity mutual funds are falling up to 20% from their 52-week high NAVs.

These 6 Mutual Funds are:

1. Quant PSU Fund: The fund is a mutual fund scheme that invests in Public sector undertakings (PSUs) in India. The main objective of this fund is to generate capital growth for a long period. Quant PSU Fund dropped by 23% at Rs. 9.93 from its 52-week high NAV of Rs. 12.86.

2. HSBC Brazil Fund: The scheme invests in shares of companies that are listed on the Brazilian stock exchange. The fund dropped by 23% at Rs. 5.89 from its 52-week high NAV of Rs. 7.62.

3. HDFC Defence Fund: the fund was launched on May 19, 2023. HDFC Defence Fund scheme invests in companies in the defence and allied sectors. The fund has drooped by 22 22% at Rs. 19.50 from its 52-week high NAV of Rs. 24.86.

4. Aditya Birla Sun Life PSU Equity Fund: The Aditya Birla Sun Life PSU Equity Fund scheme invests in equity and equity-related instruments of Public sector Undertakings (PSUs). The fund was dropped by 21% from its 52-week high NAV.

5. Invesco India PSU Equity Fund: It is a mutual fund that invests in PSU in india. The main objective of this fund is to generate capital growth by investing equity and equity-related assets of companies where the government owns most of the shares. The fund was dropped by 20% from its 52-week high NAV.

6. Tata Infrastructure Fund: It is an open-ended mutual fund scheme that invests in companies in the infrastructure and development sectors. The fund dropped by 20% to Rs. 164.37 from Rs. 204.97.

From the equity mutual fund mentioned above, the HSBC Brazil Fund had the lowest NAV, while the Nippon India Growth Fund had the highest NAV at Rs 3,817.09.

From these 6 funds, the two funds are recently available at single-digital NAV. Mutual fund investors believe that funds with single-digital NAV are less expensive and will give better returns compared to funds with a high NAV (four-digit).

As per the mutual fund expert, it is a common mistake that buying more units at a lower NAV will lead to much higher returns. NAV shows th value of one unit of a fund’s portfolio, not how much the fund will grow or perform in the market.