Mutual fund expert Dhirendra Kumar answered this and other questions in a chat with readers on May 23.
Mutual funds' average cash holdings in equity schemes topped 6 per cent in February as fund managers went slow on deployment of new inflows on expectations of better buying opportunities amid uncertainties in the market.
In 2024, the Securities and Exchange Board of India (Sebi) implemented significant reforms, focusing on cooling down the derivatives segment, enhancing transparency and accountability in small and midsised enterprise (SME) listings, and deepening the fund management ecosystem.
Many investors want to exit equities now and re-enter when they begin to rise. Such timing is difficult to pull off.
SIP top-ups are especially beneficial for young investors, who may start with a small SIP installment and grow it over their working careers, says Dwaipayan Bose.
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.
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.
'He will be remembered more for what he did as finance minister -- as someone who functioned well when the political fallout was taken care of.'
rediffGURU Ramalingam Kalirajan answers your personal finance queries.
Midcap stocks Hero MotoCorp, Zydus Lifesciences, JSW Energy, NHPC, Bharat Heavy Electricals, Bosch, and Samvardhana Motherson are expected to earn upgrades.
ETFs may be an option if you are considering only large-cap funds, experts tell Tinesh Bhasin.
What appeared to be a generous act of friendship was, in truth, a manoeuvre within a much larger strategic game. The United States used the 1962 war not just to aid India but to test how far it could be pulled into the Western fold, points out Dr Kumar.
While equity savings funds could offer higher returns over three-five years, they would also be more volatile.
While selecting a smallcap scheme, go with one that has a good track record and a stable fund manager.
Investors should avoid making drastic changes to their asset allocation during a market correction.
'The Bhashini Mission has delivered a working technology at large scale, which is as good as or better than the one with MNC tech giants.'
'Funds based on this theme offer socially conscious investors an option to invest in a portfolio that is aligned to their beliefs.'
J M Mutual Fund's chief investment officer (equity) speaks about his stock picking strategies. He says he is a firm believer in focusing on companies than on sectors.
The ultra-rich invest differently -- embracing growth, compounding, and long-term clarity to build wealth with purpose and discipline, explains Ramalingam Kalirajan.
If you already hold significant amounts of equity in your portfolio, avoid MAAFs with over 60 per cent equity. But if you lack equity exposure, an aggressive MAAF may be appropriate.
Investors can sell their entire equity and move to debt when stocks get expensive
rediffGURU Ramalingam Kalirajan answers your personal finance queries.
rediffGURU Sunil Lala answers your personal finance-related queries.
Data from Value Research analysed on five-year, three-year and one-year performances of active equity schemes to pick the best performers in popular scheme categories.
Only a limited set of investors should invest directly in corporate bonds.
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.
Many senior citizens 'underestimate the impact of inflation, taxation, health-related expenses, and the heavy premium they will have to pay on health insurance.'
Nikunj Saraf, Vice President Choice Wealth, answers your queries.
Domestic institutional investors pumped Rs 2.3 trillion into equities during H1 CY24. Of this, mutual funds contributed 80%.
