The cash pile within smallcap mutual fund (MF) schemes has grown over the past few months amid a relentless rally in stocks in this space. While fund managers usually don't make cash calls, incessant inflows and valuation discomfort have forced their hand. At the end of January, the top 10 schemes had over Rs 12,160 crore in cash, compared to Rs 8,700 crore in August 2023.
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.
Equity mutual fund (MF) schemes were flush with cash at the start of this month, even as fresh investments shrank in February. As of February 28, equity schemes from the top 20 fund houses held 6.8 per cent of their portfolios in cash, up from 6.1 per cent in January and 5.9 per cent in December 2024, according to a report by Motilal Oswal Financial Services.
Education loan growth is set to halve this fiscal (FY26) because disbursements for the US decelerate following a raft of policy changes there.
'If rate cuts happen, bond yields will come down and investors will make mark-to-market capital gains on them.'
A portfolio can be rebalanced by either selling a portion of the outperforming asset class or by buying more of the underperforming asset class.
If investing in Bitcoin, adopt a three to five-year horizon and invest systematically to gain from its volatility.
Hero MotoCorp Ltd (HMCL) has been the best-performing auto stock over the last three months, gaining over 17 per cent during this period. Multiple tailwinds, especially on the rural front, are expected to boost its volumes. In addition to the demand drivers, new launches too should help drive growth both in the commuter and premium motorcycle categories.
'In phases when smaller stocks do well, an equal-weight index performs better than its market cap-weighted peer.'
Post the change in debt fund taxation in March, a lesser-known hybrid fund has emerged as one of the alternatives for fixed-income investors. Equity savings schemes, the smallest hybrid fund category in terms of assets, have raked in around Rs 6,000 crore this financial year (FY24) so far compared to Rs 1,100-crore outflow in FY23. The inflows along with a strong performance led to a 50 per cent surge in assets under management (AUM) to Rs 24,100 crore during April-November, shows data from the Association of Mutual Funds in India (Amfi).
When evaluating bonds, returns shouldn't be the sole factor. Pay close attention to the bond's credit rating. It should ideally be AA or higher.
'Investors' decisions should reflect their financial goals, risk tolerance, and the amount of gold already present in their portfolio.'
Stopping SIPs during a downturn undermines the benefit of rupee-cost averaging.
If you fail to make the lump sum deposit before April 5, do so at least before the 5th of the next month (May). That way you will only lose out on the interest for April.
'Exposure to small and midcap stocks exceeded desired levels in many portfolios, prompting rebalancing.'
Investors should avoid making drastic changes to their asset allocation during a market correction.
rediffGURU Vivek Lala answers your income tax and personal finance queries.
Nikunj Saraf, Vice President Choice Wealth, answers your queries.
'Many do not have robust business models, and their prospects of survival and long-term growth are poor.'
After falling 17 per cent since the start of the year to its March lows, the stock of the country's largest pharmaceutical (pharma) company, Sun Pharmaceutical Industries, has clawed back nearly half of those losses. Recent acquisitions, a favourable court ruling in the case of the hair loss drug Leqselvi, an edge over peers owing to its specialty portfolio, and a diversified global presence have supported the recovery.
'If gold's recent surge has increased its allocation beyond 15 per cent in your portfolio, now may be a good time to rebalance.'
rediffGURU Ramalingam Kalirajan answers your personal finance queries.
While a giant, it's a nimble-footed one, and is growing at a speed that even some of its private sector peers find enviable.
Between FY18 and FY24, it doubled its balance sheet. Despite being a late entrant in some segments, it has been able to grab market share, observes Tamal Bandyopadhyay.
French energy giant TotalEnergies SE on Monday said it will make no new financial contribution as part of its investments in Adani group companies till the Indian firm's founder is cleared of bribery charges. The energy giant said it was not aware of the investigation into the alleged corruption. TotalEnergies is one of the biggest foreign investors in billionaire Gautam Adani's business empire and had previously taken stakes in the group's renewable energy venture Adani Green Energy Ltd (AEGL) and city gas unit Adani Total Gas Ltd (ATGL).
'Understand your financial goals. Next, categorise them by size. Then evaluate your investment options.'
Ulhas Joshi, Head -- Sales, Rank MF, a mutual fund investment platform, answers your queries.
Ask rediffGURU and PF expert Milind Vadjikar your insurance, stocks, mutual fund and personal finance-related questions.
rediffGURU Dev Ashish answers your personal finance and mutual fund queries.
Marico reported consolidated revenue growth of 20 per cent year-on-year (Y-o-Y) during the January-March quarter (Q4) of FY25. Domestic revenue surged 23 per cent Y-o-Y, while volume growth was 7 per cent. International growth stood at 11 per cent (16 per cent in constant currency growth).
The news of Bengaluru-based IMA cheating thousands once again underlines the need for investors to steer clear of unregulated deposit schemes. The most important sign of a Ponzi scheme is the promise of exorbitant returns and so investors must ask how the promoter expects to earn the kind of return he is promising, says Sanjay Kumar Singh.
Industry players said the sharp sell-off in February forced many companies to put off their listing plans
Despite a healthy performance in the fourth quarter of 2024-25 (Q4FY25), the stock of India's largest listed pharma company, Sun Pharmaceutical Industries (Sun Pharma), was under pressure on Friday due to a muted guidance. The company has guided for a high single-digit revenue growth for FY26, which is below what the Street was working with.
'The barbell strategy says that the best way to strike a balance between risk and reward is to invest at the extremes of the risk spectrum.'
'Value index funds are most appropriate for long-term investors who can withstand deeper drawdowns.'
In a move to deepen manufacturing in electronics in India, the Centre is targeting 35-40 per cent value-addition through the yet-to-be launched production-linked incentive (PLI) scheme for electronics components, sources in the government
rediffGURU Dev Ashish answers your personal finance and mutual fund queries.
Financial success isn't about making impulsive moves -- it's about making informed choices, asserts Ramalingam Kalirajan.
Strong margins in the jewellery segment in Q4FY25, steady growth guidance for FY26 and expectations of outperformance in the organised jewellery sector boosted sentiment for the largest listed jewellery maker by market capitalisation, Titan Company. The stock was the highest gainer on the benchmark indices (Sensex as well as Nifty), rising 4.1-4.5 per cent at close on Friday, taking the total gains over the past month to about 12 per cent.
'While investors believe in India's long-term growth story and resilience amid global uncertainty, they see near-term risks around the direction of a global trade war.'
'Your decisions should not be driven by your view on the market, but by your objectives, risk appetite, and time horizon.'
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