'What we need to watch is how Saudi Arabia's financial assistance will be used by Pakistan. If the funds go to build their military hardware and operations, it should worry us.'
Several investors wanting to invest in mutual fund schemes, amid the selloff in the market on Tuesday, were left in the lurch as online MF investment platforms failed to execute the transactions on time.
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.
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.
Investors who decide to enter medium to long-duration funds should be cognisant of the risk.
Saurav Ghosh's step-by-step guide will help you understand what bonds are, how they help investors make money, how much money they make and which bonds to invest in.
Brokerages are expanding the universe of stocks they cover amid a boom in the market. Several stocks in the mid-cap universe are now tracked by more analysts than they were a year ago. For instance, SBI Cards and Payment Services is now tracked by 17 brokerages, compared to just four a year ago.
'Investors who remain calm, consistent, and disciplined through short-term volatility are usually the ones who benefit most in the long run.'
The US-based firm has marked down the value of Flipkart for the sixth time, the latest at a time when it has been struggling to raise funds at a valuation higher than or equal to $15.2 billion.
From how to open an NPS Vatsalya account to knowing how this scheme compares to investing in mutual fund or in provident fund, Ramalingam Kalirajan offers a 360-degree view and the pros and cons of investing in a scheme that has the potential to secure your child's financial well-being.
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.
'Investors should allocate about 5% to 10% to such funds.'
Following the sharp run in markets, valuations across the board have become elevated. The National Stock Exchange Nifty50 Index now trades at a 12-month trailing price-to-earnings (P/E) multiple of 24.3 times, 18 per cent higher than this year's low of 20.5 times. The valuation expansion in the broader markets has been sharper.
Investors must adopt a balanced approach, incorporating both styles in their portfolios.
'In phases when smaller stocks do well, an equal-weight index performs better than its market cap-weighted peer.'
Build a portfolio diversified across market caps, investment styles, and geographies.
Younger investors with long investment horizons may continue their SIPs.
'Investors should continue to invest because you are looking at the long-term; in the next four to five years, we are bound to outperform (the rest of the world equity markets).'
While selecting a smallcap scheme, go with one that has a good track record and a stable fund manager.
Inflows into gold exchange-traded funds (ETFs), which manage a total of Rs 37,390 crore, have surged sharply in recent months. This trend is likely to continue, especially after the reintroduction of long-term capital gains tax (LTCG), which is likely to attract smart money into mutual fund offerings amid a robust outlook for the yellow metal. Smart money, also known as opportunistic flows, refers to strategic investments that are generally of a short-term horizon.
In contrast with their strong performance in 2020 and 2021, pharmaceutical and healthcare funds experienced a decline in 2022, with returns plummeting by an average 9.8 per cent. This trend has continued in the current year, with year-to-date return remaining in the negative (-4.9 per cent). In the past three months, pharma funds have been hit hard, experiencing a 7.9 per cent decline.
The mutual fund industry has witnessed a value erosion of Rs 75,966 crore (Rs 759.66 billion) in equity-related schemes in the first seven months of the current financial year. This is primarily because of the slide in the equity market on account of the global financial turmoil.
Ask rediffGURU and PF expert Milind Vadjikar your insurance, stocks, mutual fund and personal finance-related questions.
'Investing abroad helps mitigate currency risk for foreign-currency denominated goals, such as children's higher education and international travel.'
Younger people, who usually have a longer investment horizon which allows them to handle the interim volatility, may go for them.
Do you have financial planning queries? Ask rediffGURU Kirtan A Shah.
'In the short term you keep your return expectations very, very low; in the medium term be prepared to invest and in the long term growth will come and your returns from stocks will be high.'
'Funds based on this theme offer socially conscious investors an option to invest in a portfolio that is aligned to their beliefs.'
rediffGURU Vipul Bhavsar answers readers' personal income tax queries.
Tough times don't last, but tough people -- and smart financial strategies - do, says Ramalingam Kalirajan
Navi Mutual Fund (MF), among the latest entrants in the Rs 35-trillion industry, is looking to make a mark in the passive investment space, which is gaining traction in the country. The Flipkart co-founder Sachin Bansal-led fund house filed seven offer documents with the market regulator Securities and Exchange Board of India (Sebi) on a single day this week. Some of the schemes Navi MF plans to launch are Navi NASDAQ 100 Fund of Fund, Navi Nifty Commodities Index Fund, Navi Nifty 100 ESG Index Fund.
Nikunj Saraf, Vice President Choice Wealth, answers your queries.
Adopting overly aggressive strategies without considering risk could lead to significant losses during the next downturn.
Omkeshwar Singh, head, Rank MF, a mutual fund investment platform, answers your queries.
If a 5% to 10% fall in the equity market gives you sleepless nights, you are not cut out for a 75% to 80% allocation to equities and must reduce it.
The new proposal comes close on the heels of six measures introduced by Sebi to curb frenzy in index derivatives.
