Despite the current bout of volatility, debt-oriented hybrid funds remain well suited for risk-averse investors.
'We are in a position to start due diligence and private data room access shortly.'
Only investors with a higher risk appetite should enter these funds.
Highlights of the Union Budget 2024-25 presented by Finance Minister Nirmala Sitharaman in Lok Sabha on Tuesday.
Buying or selling securities based on rumours about expected changes in tax rates or sectoral sops can backfire, advises Sarbajeet K Sen.
Ulhas Joshi, Head -- Sales, Rank MF, a mutual fund investment platform, answers your queries.
Investment experts said the key to generating superior returns was "asset allocation" and taking money out of the table from themes that have performed well and into themes that are available at a discount.
'It has remained around 38 per cent over the past four to five quarters.'
The finance minister clarified that indexation benefits offered until April 1, 2001 would be protected. This means older properties, including legacy assets, would benefit.
'Arbitrage funds make the most sense for those in the 30 per cent tax bracket, are viable for those in the 20 per cent bracket, but less so for those in the 10 per cent bracket.'
Exposure to debt funds and gold is essential even if current returns from these asset classes are low, suggests Sanjay Kumar Singh.
Equity fund managers say large-caps offer higher relative safety, especially in such times.
Even if the bull run may continue, most experts say some profit booking is called for, points out Sanjay Kumar Singh.
'Value index funds are most appropriate for long-term investors who can withstand deeper drawdowns.'
'Investors with foreign currency-denominated goals, such as foreign education or foreign travel, should go for US equity funds.'
Irrational behaviour, born out of incomplete understanding, biases, overconfidence, fear or greed, has led investors to make less than half of what they could have in the capital markets, says Erik Hon.
'A dynamic bond fund acts like a gilt fund in a rate cut scenario and like a conservative short-term bond fund when rates rise.'
While financial planning is good for you, the process which a planner can put you through is not so great, observes financial planner P V Subramanyam.
Water projects firm Vishnu Prakash R Punglia, the 20th company to launch its IPO in the current year, saw its shares closing at a 47 per cent gain over its issue price on Tuesday. Such a huge one-day pop is considered rare; however, it has become the norm this year. The average listing-day gain for these 20 IPOs in 2023 is 34 per cent, and their average gain to date stands at 46 per cent.
Avoid investing in a new ELSS scheme each year. Stick to one well-chosen scheme to avoid clutter in your portfolio.
'If rate cuts happen, bond yields will come down and investors will make mark-to-market capital gains on them.'
While selecting a smallcap scheme, go with one that has a good track record and a stable fund manager.
A combination of factors, including heavy investments in US Treasury bonds and dollar sales at a healthy profit, facilitated the Indian central bank in transferring a record surplus of Rs 2.11 trillion to the government for 2023-24 (FY24). The RBI's dollar purchases increased in FY24, supported by robust capital inflows endorsing the economy's health.
'A long-term investor with a 4 to 5 year horizon could invest in this theme via SIPs.'
rediffGURU Ramalingam Kalirajan answers your personal finance queries.
FDs are not advisable for long-term wealth creation as their post-inflation, post-tax returns are not very attractive.
Gold is an excellent asset class for diversification and should be included in all long-term portfolios.
'Like every Budget, this time, too, there is chatter around tinkering with the long-term capital gains tax.' 'Investors may not want to jump into the markets until there is clarity on this front.'
Don't focus on market or product returns -- focus on your target rate of return, and then choose an investment.
While seniors seeking a regular income should switch to debt funds from balanced funds, younger investors should invest in balanced funds after understanding their risks.
Do a proper asset allocation and invest through systematic investment plans where one can benefit.
Do not, however, enter expecting quick returns.
'Banks make money because they take the right credit calls. So they need to focus on risk mitigation rather than risk avoidance.'
Mutual funds have emerged as an ideal option for investors to achieve diversification. Apart from being a diversified investment vehicle, these offer a variety of funds within an asset class.
According to an Andhra government statement, Naidu 'reposed confidence' in the PM's leadership.
Post the change in debt fund taxation in March, a lesser-known hybrid fund has emerged as one of the alternatives for fixed-income investors. Equity savings schemes, the smallest hybrid fund category in terms of assets, have raked in around Rs 6,000 crore this financial year (FY24) so far compared to Rs 1,100-crore outflow in FY23. The inflows along with a strong performance led to a 50 per cent surge in assets under management (AUM) to Rs 24,100 crore during April-November, shows data from the Association of Mutual Funds in India (Amfi).
The country's six largest smallcap schemes would require more than 20 days to liquidate half of their holdings, despite most of them maintaining high cash levels and having considerable exposure to more liquid largecap stocks, stress tests conducted by fund houses reveal. For midcap funds, the time required to sell half of the assets of the top six schemes varies between seven and 34 days, according to disclosures made by asset management companies. The Securities and Exchange Board of India (Sebi) had called for such tests in the face of strong inflows into smallcap and midcap funds, despite concerns over high valuations, to keep investors better informed.
'It makes sense to have gold in one's portfolio keeping the political and economic risks of 2024 in mind.'
Electric two-wheeler (e2W) maker Ather Energy has submitted preliminary papers to the Securities and Exchange Board of India to raise funds through an initial public offering (IPO). According to the draft red herring prospectus (DRHP), the IPO will comprise a fresh issue of equity shares valued at Rs 3,100 crore, alongside an offer for sale of 22 million equity shares by its promoters and investor shareholders.
