Invest with a 5 to 7 year horizon so that you are able to ride out price volatility and benefit from the long-term trends of demand and macroeconomic shifts.
An analysis of buy and sell transactions by mutual funds during May shows that the fund houses purchased stocks from sectors like power, software, housing finance and sugar, while offloading shares from banking, refineries and airlines. According to brokerage firm Sharekhan, state-run NTPC, ONGC, TCS, Essar Oil and Reliance Petroleum figure among the favourite picks by the equity funds in the month of May.
Many investors want to exit equities now and re-enter when they begin to rise. Such timing is difficult to pull off.
Fund managers's compensation is largely tied to the assets they manage and scheme performance.
Data from Amfi shows that NAV of every one in two BAFs declined 1.5% or less on Monday compared to a 3.13% decline in Nifty 500.
The impending merger between Housing Development Finance Corporation (HDFC) with HDFC Bank may create challenges for large-cap fund managers, most of whom are already grappling to match the returns generated by their benchmarks. The combined weight following the merger in the benchmark Sensex and Nifty 50 indices is likely to be much higher than permissible limits for active mutual fund (MF) schemes. This could have a bearing on the performance of large-cap funds if HDFC Bank shares outperform the markets, as the schemes will be forced to remain underweight on the stock to adhere to the single-stock cap.
rediffGURU Dev Ashish answers your personal finance and mutual fund queries.
India's stock markets corrected recently but foreign money is likely to chase China rather than India in the short-to-medium term, said Chris Wood, global head of equity strategy at Jefferies, on Thursday. Wood told the Business Standard Manthan Summit in New Delhi he is bullish about Indian equities from a long-term perspective, but for the short term he is cautious given the quantum of foreign investor (FII) outflows and valuation woes.
Investors are yet to warm up to the concept of sustainable investing with sustainable or ESG (environmental, social, and governance) funds in India witnessing outflows of Rs 315 crore in 2021-22. This comes following a staggering inflow of Rs 4,884 crore in FY 2020-21. Prior to that, sustainable funds saw an infusion of over Rs 2,000 crore, according to data compiled by Morningstar India.
Ulhas Joshi, Head -- Sales, Rank MF, a mutual fund investment platform, answers your queries.
'Your decisions should not be driven by your view on the market, but by your objectives, risk appetite, and time horizon.'
After heightened activity in 2024, there has been a slowdown in new listings, with no main-bourse IPOs hitting the market in the past three weeks due to a correction in the secondary market. This slowdown in IPO activity is reflected in the numbers, as only five companies went public in January and four in February, compared to 16 listings in December 2024.
Midcap stocks Hero MotoCorp, Zydus Lifesciences, JSW Energy, NHPC, Bharat Heavy Electricals, Bosch, and Samvardhana Motherson are expected to earn upgrades.
Whether you're a young professional, a seasoned entrepreneur, or someone simply looking to take control of your financial future, adopting these principles can be life-changing, says Ramalingam Kalirajan
While selecting a smallcap scheme, go with one that has a good track record and a stable fund manager.
Seasoned bureaucrat and a stickler for rules Finance Secretary Tuhin Kanta Pandey will be at the helm of capital market regulator, Securities and Exchange Board of India (SEBI), for three years. The 1987-batch Odisha-cadre Indian Administrative Service (IAS) officer, Pandey, would replace Madhabi Puri Buch, whose three-year term ends on Friday.
After screening the sector, Nagendra Singh goes for companies with strong fundamentals and good management quality.
High dividend yield stocks usually perform well in a rising interest rate environment when investors value cash flows more.
'We would advise investors to hold on to multi-cap funds and not invest further until further clarity emerges.'
Ask rediffGURU and PF expert Milind Vadjikar your insurance, stocks, mutual fund and personal finance-related questions.
The MF investor count, which stood at around 38 million in April 2023, has surged by 19 per cent in the past year.
rediffGURU Ramalingam Kalirajan answers your personal finance queries.
'Those satisfied with returns and not expecting further rally could be booking profits and also stopping SIPs.'
'There is no irrational exuberance when it comes to mainboard IPOs.' 'Most issues are by good quality businesses.'
Your choice between the Old and New Tax Regimes should reflect your financial strategy and investment goals, says Ramalingam Kalirajan
The equity market's recent downturn appears unlikely to slow the brisk pace of mutual fund (MF) scheme launches, at least in the coming weeks. Last month, fund houses introduced 21 new equity schemes, with another five launches already lined up for November. The number of filing with markets regulator, Securities and Exchange Board of India (Sebi), suggests this momentum will continue with asset management companies (AMCs) seeking approval for 21 more equity schemes in October.
Ask rediffGURU and PF and MF expert Janak Patel your mutual fund and personal finance-related questions.
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The market regulator is wielding an unprecedented level of control over how mutual funds operate, delaying new launches and dictating investment strategy, frustrated insiders in the embattled industry say.
Jayesh Gandhi, Fund Manager, Birla Mutual Fund says that they have exposure to Allahabad Bank, IOB, PNB and Union Bank.
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.
'We plan to launch new initiatives, including cash flow-based lending, to ensure borrowers are not burdened and can access funds more quickly.'
India's largest asset manager SBI Funds Management on Tuesday said they are negative on equities from a shorter-term perspective as valuations have risen above the comfort zone. "We are not positive on equities. We think valuations are expensive. "The market has gone up a lot more than the earnings have grown," said R Srinivasan, Chief Investment Officer (CIO) - Equity at SBI Mutual Fund, at the launch of asset management companies' (AMC) yearly report on the market outlook.
Invest only if you wish to go overweight on the sector.
'More investors now view the stock market as a valuable opportunity, though many still seek quick gains, leading to a rise in futures and options trading.'
The rising market poses a dilemma for investors on whether to continue buying, reduce equity holding, or exit equities altogether.
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