Market watchers believe that the change in guidelines fly in the face of some of the recent initiatives taken by the government, such as easing norms for foreign portfolio investors.
Steep volatility in the markets has made fund managers cautious, awaiting opportunities to deploy the cash.
The category average return of mid-and-small-cap funds is 95 per cent.
As the stock markets scale new peaks almost every day in a pre-poll rally, a vast majority of Indian investors expect a further rise in equities in the current year, says a survey.
Because of local and global problems, inflation pressures may continue, helping these schemes perform better.
Monitor how long the high cash position lasts. If it lasts for a month or two, it is fine. But if it continues for a couple of quarters, seek your advisor's opinion on whether to exit the fund.
Stocks such as ICICI Bank, Axis Bank, State Bank of India, Bank of Baroda and HDFC Bank are among the top banking picks of analysts for 2017. A decline in cost of funds and treasury gains are expected to help stabilise their net interest margins
In 2021, there is the risk of interest rates spiking. Investors should tackle duration risk with a longer investment horizon, suggests Sanjay Kumar Singh.
Investors in international funds should have a horizon of more than five years. Not only will this help them overcome equity and currency volatility, it will also help them enjoy better tax treatment, says Sanjay Kumar Singh.
Gold funds have returned -5.2 per cent, while the Sensex is down 7 per cent in the past year.
Debt funds have exposure of nearly Rs 8,000 crore to Zee group papers. Aditya Birla MF, HDFC MF, Franklin Templeton MF, and ICICI Prudential MF have the highest exposure, reports Samie Modak.
'This is the first time we will see how SIP investors react to market correction.'
'MFs acted as reckless lenders and not as prudent investors.' 'Clearly, how debt funds are being run is a systemic issue,' warns Debashis Basu.
The Securities and Exchange Board of India does not seem to have understood the enormity of what funds have been up to. If Sebi does not crack down on mutual funds using cooked-up credit ratings to hide behind promoter funding, this is bound to grow into a systemic menace, says Debashis Basu.But MFs decided to become lenders without the legal backing to secure themselves, or the skillset to assess lending risk. If Sebi does not crack down on mutual funds using cooked-up credit ratings to hide behind promoter funding, this is bound to grow into a systemic menace, says Debashis Basu.
Several MF managers are trying to tell their investors that it could be the best time to invest as India is different.
'It is unlikely that foreign portfolio investors (FPIs) might increase their India allocation, given the overweight status for most FPIs.' 'Given the commentary from the Republican Party, an anti-imports approach means money will not flow out of the US.'
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
Now STPs or variable SIPs can earn better returns than vanilla SIPs.
They researched their companies well, didn't believe in the market chatter and advise to stay invested for long term.
If you want his advice on your mutual fund investments, please mail your questions to getahead@rediff.co.in with the subject line, 'Mutual Fund Query', along with your name, and Omkeshwar will offer his unbiased views.
The index gained 572 points, or 2.4 per cent, this week while the Nifty added 164 points, or 2.3 per cent
Modi government needs to focus more.
There are some advantages of a falling rupee.