Kuvera's video: Myth vs Fact: Stock market performance directly affects the performance of funds

Myth: Performance of funds is directly related to the stock market Don't fall for the misconception that mutual fund performance is directly tied to the stock market. Let's uncover the truth and explore real-life examples to shed light on this matter. Fact: Mutual funds have diverse portfolios comprising 30-40 stocks, allowing their performance to deviate from overall market movements. Even in a bearish market, certain stocks within the portfolio can deliver exceptional returns, positively impacting the fund's performance. Take, for instance, a mutual fund that holds stocks from various sectors. While the stock market may be experiencing a downturn, specific sectors, such as technology or healthcare, might be thriving. If the fund holds stocks from these sectors, it can still generate good returns despite the market's performance. Additionally, skilled Fund Managers actively manage mutual funds. They regularly review and adjust the portfolio to maximize returns. They have the flexibility to allocate a portion of the fund's assets to debt or cash, providing a buffer against market downturns and reducing the erosion of the fund's value. In conclusion, mutual fund performance is influenced by factors beyond the stock market. Diversification, active management, and flexible asset allocation all play a significant role in achieving favorable returns. It's time to dispel the myth and make well-informed investment decisions based on the reality of mutual fund performance. Stay updated with super cool videos on investing. Subscribe to Kuvera Channel https://bit.ly/3bawMXK Follow the conversations across Kuvera.in on Twitter : https://twitter.com/Kuvera_In Facebook : https://www.facebook.com/kuvera.in/ LinkedIn : https://www.linkedin.com/company/kuvera-in/ YouTube: https://www.youtube.com/@Kuvera Thread: https://www.threads.net/@kuvera.in To watch more Insights on Market and Mutual Funds, Kuvera Insights Playlist :Kuvera Insights: Investing in Flexicap funds Start your investing journey with Kuvera: https://kuvera.onelink.me/t2AP/c4syh6uy