'The idea is to invest where there is opportunity.'
HDFC Asset Management Company (HDFC AMC) reported a healthy profit after tax (PAT) of Rs 430 crore for the July-September quarter (Q2) of financial year 2023-24 (FY24). It rose 20.2 per cent year-on-year (Y-o-Y) and decreased 8.4 per cent quarter-on-quarter (Q-o-Q). This was driven by good equity returns, leading to a sequential improvement in revenue yields.
Don't exit from growth-style funds as they may benefit next from a shift in investor preference.
Quant funds are a unique offering in the MF space as the investment decisions are driven by a blend of active and passive strategies.
2023 could be another volatile year for Indian equity markets, according to BofA. In a report, the brokerage pointed out that the Nifty50, at present, is trading at 20.7x against its long-term average of 18.8x one-year forward earnings of current Nifty constituents. Plus, India is trading at a 98 per cent premium to its emerging market (EM) peers against its long-term average of 45 per cent.
'Although mid- and small-cap funds have the potential for higher growth, they come with inherent higher volatility.'
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.
Wait for a few days before deciding to buy shares or MF schemes.
Experts believe that financial planning should always start as soon as we become financially independent. This helps in building a sizeable corpus over time and is also easy on our pockets
Enter multi-cap funds only if you can stay invested for the long term.
And there have been months when flows have exceeded $3 billion.
Returns in Systematic Transfer Plan are consistent as money invested in debt mutual fund schemes earns interest till the time the whole amount is fully transferred to equity fund, says Vishwajeet Parashar, Sr VP and Group Head -- Marketing, Bajaj Capital
Bonuses are typically commensurate with deal activity in any given year. Investment banks, on average, pocket 2-3 per cent as fees for managing an IPO and 1.5-2 per cent for handling QIPs.
Rishi Piparaiya lists three simple steps to manage the impact of rising prices and protect your financial future
India's mutual fund (MF) industry had barely any retail footprint when it completed 50 years in 2013. MFs had Rs 7 trillion in assets under management (AUM) in March 2013, of which around Rs 5 trillion was in institution-focused debt funds. By comparison, bank deposits in the country stood at Rs 67.5 trillion around the same time.
It's good for diversifying portfolio and saving for long-term goals
The mutual fund industry added Rs 2.2 lakh crore to its asset base in 2022, driven by consistent monthly increase in SIP (Systematic Investment Plan) flows. The Assets Under Management (AUM) of the mutual fund industry rose by 5.7 per cent or Rs 2.2 lakh crore to a total Rs 39.88 lakh crore in 2022, data from the Association of Mutual Fund Industry (Amfi) showed on Tuesday. This was way lower than a surge of nearly 22 per cent or an increase of close to Rs 7 lakh crore in the asset base to Rs 37.72 lakh crore in 2021.
Retail investors should not invest for bonus or dividend because in order to make money over the long term.
Retail investors now own a bigger slice of small-cap companies than a couple of years earlier, attributable to their growing conviction in mutual fund (MF) schemes focused on this space. Data from Capitaline shows MFs' average holding in the National Stock Exchange Nifty Smallcap 250 rising to 8.67 per cent, from 7.67 per cent in the past two financial years, with the number of companies with over 20 per cent MF holdings, rising from 15 to 24. At the end of May, the top five small-cap firms with the highest MF holdings were Carborundum Universal, Blue Star, Cyient, Gujarat State Petronet, and Cholamandalam Finance.
Don't opt for a SWP when you have a regular cash flow. During such times, opt for a SIP.
'Strong regulations are crucial for the orderly development of the market.'
Direct investors should stagger their investments over 1-2 months.
These funds can fetch double-digit returns over the long term which debt tax-saving products can't.
Retail investors seem to have dipped into their mutual fund savings to meet pre-festival spending. According to data released by the Association of Mutual Funds in India (Amfi), investors pulled out Rs 6,578 crore from their systematic investment plan (SIP) accounts in September, the highest in the last 11 months. The redemptions were on the higher side during the previous festive season as well.
Investors continue to make losses on investments.
'Given the worries about sluggish growth, rising interest rates and likely volatility, it's quite logical to infer that the SIP route could be the preferred way of investing.'
Over longer periods of three, five and 10 years, small-cap funds have rewarded their investors handsomely.
'As China's reopening euphoria fizzled out on the back of some disappointing economic data, we saw inflows coming back to India with full force in the past 3-4 months.'
Mutual fund houses do have several challenges ahead to win more investors.
Why the case for investing in passive funds is becoming stronger.
rediffGURU and financial planning expert Colonel Sanjeev Govila will answer your personal finance-related questions.
Most equity schemes have more than doubled their NAVs in 8 years, even if they entered at the pre-Lehman crisis peak
Sustaining positive momentum for the 14th straight month, equity mutual funds attracted a net sum of Rs 15,890 crore in April amid heightened volatility in stock market and consistent selling by foreign portfolio investors. This was much lower compared to a record net inflow of Rs 28,463 crore seen in the preceding month, data from the Association of Mutual Funds in India (AMFI) showed on Tuesday. The lower quantum of net inflow from the previous month could be attributed to investors going slightly cautious given the ongoing challenges to the investment environment, Himanshu Srivastava, associate director - manager research, Morningstar India, said.
Given the prevailing uncertainties, investors must maintain a 10-15 per cent allocation to gold in 2023.
The 44-player industry logged assets under management of Rs 26.33 lakh crore in October-end, as compared to Rs 27.04 lakh crore by November end, representing a growth of 3 per cent. Among debt-oriented schemes, overnight funds received flows worth about Rs 20,650 crore, the highest among the fixed-income segment last month.
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.
As emotional beings, humans tend to be their own worst enemy when it comes to making investment decisions, says Holly Cook
Smaller stocks have emerged as Dalal Street's favourites in 2023 that has turned out to be a "great year" for equities, rewarding investors with big gains, driven by optimism over the country's macroeconomic fundamentals and heavy retail investors participation. Experts said equity markets are experiencing a prolonged bull run and it is during this time that the midcap and smallcap segments tend to outshine their larger counterparts. Till December 22 this year, the BSE smallcap gauge has jumped 13,074.96 points or 45.20 per cent while the midcap index has surged 10,568.18 points or 41.74 per cent.
rediffGURU Ramalingam Kalirajan answers your personal finance queries.
Equity investing is still fraught with peril and is riddled with sink holes that investors need to be wary of
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