Amidst a sharp run-up in gold and silver prices, investors are advised to rebalance their portfolios by booking partial profits in precious metals and reallocating to domestic equities and debt, according to financial experts.
'Existing investors who have not acted so far may consider holding on to these funds with the understanding that the higher returns they expected from them may now take longer to materialise.'
Investors with a 6 to 12 month horizon may consider them. They should align their holding period with the fund's maturity profile and prefer schemes with a lower expense ratio.
'Investing in these funds makes sense if their net yield over better-quality funds -- corporate bond funds or banking and PSU funds -- is meaningful.'
'They are positioned as defensive products and can potentially give marginally higher returns than liquid funds.'
'Maintain a balanced approach with a preference for short-to medium-duration funds.'
With the interest rate cut cycle nearing its end, several debt fund managers are shifting their focus towards interest income rather than betting on duration in anticipation of capital gains.
Despite similar tax treatment, debt MFs enjoy certain advantages over FDs.
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'They are ideal for short-term financial goals like children's education or a down payment for a house.' 'They are also useful for transitional savings, such as during job switches or while starting a business.'
'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.'
'When interest rates rise, the NAVs of these funds will fall.' However, they won't fall as much as longer-duration funds.
'Young investors should focus more on equity, while retired senior citizens should prioritise fixed income.' 'Mid-career investors should aim for a balanced allocation.'
Manu Bhaker narrowly missed out on the bronze medal as she finished fourth in the women's 25m pistol event, at the Paris Olympics on Saturday.
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'I would say you have to give six months to a year to give the athletes to kind of even register that person is going (to the Olympics). People are struggling to find their kit. So, things could have been better.'
By taking the mutual fund route, investors can take exposure to gilts with small amounts. Over a decade or more, returns from these funds tend to be sound.
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Tactical investors should have an investment horizon of around six months to one year, long-term investors should stick around for 10 years or more.
Actively managed debt funds with the flexibility to go long on duration made a strong comeback on the returns chart in 2023, thanks to softening bond yields. The average one-year returns of floater, long-duration, gilt, and dynamic bond funds, which ranged between 2.3 per cent and 4.5 per cent at the end of 2022, now stand at over 7.2 per cent, with some schemes delivering over 8.5 per cent, according to data from Value Research. Debt fund returns are inversely related to yields of underlying investments, meaning a decline in yields is positive for funds.
'Your decisions should not be driven by your view on the market, but by your objectives, risk appetite, and time horizon.'
Floating-rate mutual funds are back in demand after a year-long period of consistent outflows. In the past three months, investors have poured over Rs 6,100 crore into these debt schemes, indicating a reversal in fortunes for the category that recorded outflows for 11 consecutive months (May 2022 to March 2023), totalling Rs 32,250 crore. Floating-rate funds invest at least 65 per cent in floating-rate instruments, which have their interest rates linked to the Reserve Bank of India repo rate.
Opinions vary, but fund managers remain bullish.
'If rate cuts happen, bond yields will come down and investors will make mark-to-market capital gains on them.'
These schemes are a good choice for investors contemplating a large investment in equity funds. Instead of investing all the money in one go, they can do so in a staggered manner by parking it in these schemes and then transferring it to equity mutual funds through a systematic transfer plan.
Emotions welled up inside Saurashish Lahiri when Akash Deep, the latest Bengal speed merchant to enter Indian dressing room, rang him up.
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India's shooters opened their account at the Asian Games, bagging the women's team silver in the 10m air rifle event in Hangzhou on Sunday.
'They can transition from short to long-duration funds when the yield curve normalises.'
The tea industry's cup of woes brimmeth - scanty rainfall and pest attacks have dragged down production in May, prices are lower than last year, and demand from some export markets is muted. Production in North Bengal - comprising the Dooars, Terai, and Darjeeling - is majorly affected; parts of Assam are also hit. Arijit Raha, secretary general, Indian Tea Association (ITA), said that the Tea Board numbers for April show a crop loss of about 9 per cent for North Bengal, compared to last year.
'Banks will continue to increase FD rates to attract more deposits and meet the increasing demand for credit.'
Fiesty Bengal pacer Mukesh Kumar knows well what it takes to be selected for the Indian Test team.
An NCD's credit rating will tell you whether risk possibility is high or low. Instruments rated below AA are regarded as high-risk.
'The long maturity of these funds makes them well-suited for long-term financial goals such as saving for retirement or children's education or marriage.'
An online shooting tournament, held in bedrooms and basements, brought some positivity and a smile on the face of a young national- level shooter undergoing treatment for cancer in a Kolkata hospital. From her hospital bed, the ailing markswoman joined the proceedings in the second international online shooting championship through Zoom App, and expressed her delight at being part of an initiative that also resulted in a virtual post-match press conference.
TMFs invest in a public index, so investors know beforehand which instruments the fund will invest in.
Rebalance the portfolio at least once a year to ensure it remains in sync with the target asset allocation.
Improved credit profile may make you eligible to transfer your existing home loan to another lender at a much lower rate.
Noted shooting coach Sanjay Chakraverty, who has given India some of its finest shooters including guiding the likes of Olympic medallist Gagan Narang and Anjali Bhagwat, died in Mumbai.
