'They are positioned as defensive products and can potentially give marginally higher returns than liquid funds.'
Valuations at current levels have historically corresponded single-digit returns.
The performance of banking and information technology (IT) stocks has had a significant impact on the composition of diversified mutual fund (MF) portfolios. Over the past two months, these sectors have become increasingly dominant, now constituting nearly 30 per cent of the total allocation in many diversified MF portfolios.
'A long-term investor with a 4 to 5 year horizon could invest in this theme via SIPs.'
'For those seeking regular income, these funds provide a steady stream of income through dividends.'
Despite the uncertainties created by rising bond yields and oil prices, fund managers have been proactively deploying fresh flows into the equity market. The cash available with equity fund managers, which has remained lower at around 5 per cent in the past few months, hit a 16-month low of 4.8 per cent in September, shows a Motilal Oswal Financial Services report. Cash holdings in equity schemes had topped 6 per cent in February amid subdued equity market sentiment.
'If rate cuts happen, bond yields will come down and investors will make mark-to-market capital gains on them.'
Rebalance your portfolio in case it has become overweight on equities vis-a-vis your strategic asset allocation.
Besides high portfolio yield, investors may enjoy capital gains in debt funds in 2023 as bonds rally in anticipation of rate cuts.
'Continue with your SIPs to get the benefit of lower average prices in this challenging market environment.'
Many investors want to exit equities now and re-enter when they begin to rise. Such timing is difficult to pull off.
Improved credit profile may make you eligible to transfer your existing home loan to another lender at a much lower rate.
Tata Mutual Fund's 'own a piece of India' offering is suitable for informed investors.
Interview with president and CEO of Tata Mutual Fund.
Smaller stocks continue to shine at the bourses. The BSE MidCap index is up 18 per cent since the beginning of January this year against a 5 per cent rise in the Sensex during the period. With the current rally, the mid-cap index has doubled in value since the end of March 2020 against a 70 per cent rally in the Sensex during the period. On Tuesday, the mid-cap index closed at 21,232, as compared to 17,941 at the end of December 2020. In the same period, the benchmark index moved from 47,751 to 50,193.
The volatility in Indian markets will take another 12 months to ease out. There are market cycles and economic cycles. We had a 4-year bear phase during 1994-97. The markets are still trading at reasonable levels compared to the one year forward price-to-earnings ratio multiple of 2005-06.
For instance, new fund offers of ICICI Prudential, Tata Mutual Fund and Fortis are on, while Religare, HDFC and Principal PNB have applied for launching NFOs.
Banks and mutual funds are devising novel methods to grab your deposits.
The scheme has a maturity of three years when it will automatically be converted into an open-ended scheme, a release said in Mumbai on Monday.
This comes on the back of impressive performance in infrastructure stocks in 2006 and in the first seven months of this calendar.
if one looks at the valuations of some of the high quality midcaps they have come down to corresponding Index level
Historically, Indian stocks trade at earnings multiple of 17-18 times. At current prices, the earnings multiple for the Sensex is 26 times.
The unlocking of the economy since June led to a significant recovery in various macro, micro and high-frequency data points, resulting in the equity markets surpassing their previous lifetime highs.
Even after the split, UTI Mutual Fund continues to hold the largest market share of 14.47 per cent closely followed by ICICI Prudential, HDFC Standard Life and Templeton in the over Rs 1,00,000 crore (Rs 1,000 billion) industry.
In the year to date, 61 PSUs have lost an average of 22 per cent, with five companies losing more than half their share value. The BSE PSU index is down 10.6 per cent.
Instead of getting swayed by market gyrations, investors must stay invested for the long term, advises Sarbajeet K Sen.
Suppandi has evolved over the years from being a household help to having a variety of office jobs.
Two factors play a predominant role in fetching good returns -- stock selection and allocation, suggests Sanjay Kumar Singh.
Market participants are hoping for a few tweaks on the taxation front which will encourage consumers and businesses to spend.
Ajit Mishra, vice president, Research, Religare Broking, answers your queries.
Sanjay Kumar Singh suggests key factors investors need to keep an eye on while choosing the direct investment route.
Investors across age groups and risk appetite can invest in these schemes.
Experts say investors need not tinker with their debt portfolio as shifting won't be tax-efficient.
Take a call to stay put or opt our based on whether you think the company will be able to find a strategic investor, suggests Sanjay Kumar Singh.
Investors with shorter horizon of three-five years can also look at balanced funds and also those looking to invest lump sum money.
© 2026 Rediff.com - Investor Information - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances