While equity savings funds could offer higher returns over three-five years, they would also be more volatile.
However, it is noteworthy that foreign investors pumped in money on the day of election results as the mandate became clear
In an online chat with readers on August 10, Vidya Bala, Vidya Bala, head of mutual fund research at FundsIndia, answered their queries. For hose who missed the chat, here is the transcript.
'Investors should allocate about 5% to 10% to such funds.'
In these times of global uncertainty, be cautious in selecting the right market and fund.
Tata Mutual Fund's 'own a piece of India' offering is suitable for informed investors.
If you are a retail investor, you can allocate a portion of the portfolio to the medium- to long-term debt fund category instead of gilt funds.
With a 'yes' vote, there is a more foreseeable outcome, while a 'no' could result in greater uncertainty, for which retail investors may not have the appetite.
Investors with shorter horizon of three-five years can also look at balanced funds and also those looking to invest lump sum money.
Ideally, one should opt for a 5 to to 10- year period in an MF scheme or exit when the goal is reached.
While stocks are at cheap valuations, the volatility can be unnerving.
Investors can sell their entire equity and move to debt when stocks get expensive
'Investors need to understand that these schemes may not do well in the market that is in a bull run, but quality stocks would protect the downside.'
The tax filing season is here, and mutual funds have launched tax-saving products.
Drop in the number of schemes is less than 3%, despite merger of 38 schemes between Sept 2017 and May this year
Experts say you may invest in small-sized funds and benefit from their nimbleness.
Arbitrage schemes can give investors better post-tax returns than debt funds.
Given its focus on the real estate sector, financial planners feel this scheme is not meant for first-time investors and any investor should only have 5 to 10 per cent exposure to this fund.
With the introduction of 10 per cent tax both on long-term capital gains and on dividend, choose funds based on investment horizon and risk appetite, not on tax advantage, experts tell Sanjay Kumar Singh.
ETFs may be an option if you are considering only large-cap funds, experts tell Tinesh Bhasin.
Invest 5 to 10 per cent in a banking sector fund. Ensure that mutual fund's portfolio includes all three players -- private sector banks, public sector banks and NBFCs.
For investors, every cost-saving means higher returns.
How do you pick a mutual fund scheme that suits your needs?
New retirement schemes from MFs offer Section 80C benefit but locks in your money for five years
Inflation indexed bonds assure a positive return over inflation.
While the number of international MF schemes is increasing, so is the confusion for investors.
Analysts say those taking exposure through stocks could look at firms focused on domestic business
They help diversify portfolio and are less risky.
Balanced funds may be a good option for first-time investors.
Given that the ETF has given exceptional returns over the past year, start small and buy more in a staggered manner.
Experts say the size of the fund shouldn't be a primary criterion for selection.
While there is little one can do when the fund house restricts redemptions, it's best to exit even if it means some losses.
You can look at equity-oriented balanced funds.
In a growth market, these funds should not form more than 10-15% of your portfolio. Invest with a horizon of at least 5 years
Experts believe that one should not allocate more than 5-10 per cent of one's equity portfolio to international funds.
In 5 years, the AMC has clocked a growth rate of 40% with its AUM up nearly 4 times.
Equity investments are fruitful over the very long 20-year term.
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