Your advice to investors at this point

I would urge most investors to keep away from new fund till they actually mature. Most of the time investors are tempted that here is a big opportunity and they have to participate. The investor should stay clear of relatively new fund till they are at least three-years old. Even three-years is not enough sometimes because you can have a phase when in the three-years, there could be just one phase of the market.

A fund has to go through both phases of the market; the up cycle and the down cycle for an investor to understand. How a fund does for most common investor is important to be known. It is important for a fund to be able to make money in a rising market and a fund is able to better protect money in a falling market. One can’t get to see this in just one-year, six-months, two-years time.

(Source: value research)