Multi-asset allocation funds (MAAFs) have emerged as strong performers among mutual funds (MFs), rivalling medium-term returns from traditional equity categories while maintaining a lower risk profile. Over the past three years, average returns for this segment have surpassed those of flexicap and largecap funds, for both lump sum and systematic investment plan (SIP) investments.
NPS Vatsalya offers a disciplined investment avenue that parents can use to create intergenerational wealth by contributing even small sums.
The recent correction suggests that while precious metals hedge geopolitical tension and inflation, they are not immune to sharp short-term corrections and profit-booking.
'People become guided by emotions, fear of missing out, and greed. They tend to invest in booming sectors that may prove exceptionally expensive.' 'Typically, that represents the peak, and subsequently, they lose substantially.'
'For the initial decade, I consistently advise young professionals to prioritise career development and income growth rather than market analysis.'
'Credit growth in India remains in double digits, even though corporate borrowing is subdued.' 'Corporate credit is weak because companies are cash-rich and cautious amid global uncertainty.'
Overlap refers to the same stocks appearing across fund portfolios.
Sometimes, the most powerful Budgets whisper and the wisest investors listen, notes Ramalingam Kalirajan.
This exercise allows investors to realign their portfolios with changing market conditions and evolving personal objectives.
'...a mix of asset classes.' 'Include equities for growth (across market caps), debt for stability and liquidity, gold as a hedge against macro and currency risk, and global assets for geographical and economic diversification.'
Flexicap fund performance depends heavily on the fund manager's decisions.
'Trading without strict position sizing, stop-loss discipline, or a clear exit plan almost guarantees losses.' 'Chasing tips, reacting to intraday noise, or assuming frequent trading improves outcomes are equally damaging habits.'
Global risks include a potential delay in the US-India trade agreement, the possibility of a sharp correction in US equity markets, and renewed geopolitical tensions.
'New investors should enter gradually and stay cautious.' 'Silver is a structural multi-year story, but timing matters in a high-volatility metal.'
India's household debt climbed to 41.3 per cent of gross domestic product (GDP) at the end of March 2025, marking a sustained rise from its five-year average of 38.3 per cent, with consumption-related loans accounting for bulk of the borrowings, the Reserve Bank of India (RBI) said in its Financial Stability Report.
'The bigger unknown remains global geopolitics, which is inherently unpredictable, including developments in our neighbourhood.' 'Another concern is the increasing tilt of government finances towards welfare subsidies, especially at the state level.' 'This could constrain capital expenditure, which is critical for long-term growth.'
Rediff explains why the system, not the Budget, is the problem.
Ask rediffGURU Naveenn Kummar your insurance mutual fund and personal finance-related questions.
Over 50 per cent, or 660 stocks, from the BSE 1000 index recorded negative returns during CY25.
Ask rediffGURU and PF expert Nitin Narkhede your mutual fund and personal finance-related questions.
'We expect modest returns in 2026 versus the steep gains seen over the past few years.'
Insurance intermediaries who receive disproportionately high commissions are likely to see a decline in their payouts, post the new Insurance Amendment Bill. The new Bill gives the Insurance Regulatory & Development Authority of India (Irdai) the power to disgorge unlawful gains made by insurers and intermediaries as well as the right to limit commissions paid to intermediaries.
Investors encountering underperformance must be patient.
Activity in the corporate bond market is set to gain momentum following a 25-bp policy repo rate cut by the rate-setting panel of the Reserve Bank of India (RBI). State-owned public cebPower Finance Corporation (PFC) and Small Industries Development Bank of India (Sidbi) are planning to raise up to Rs 11,500 crore through bonds on Tuesday as issuers expect borrowing costs to ease.
New investors should not allow themselves to fall prey to FOMO and rush headlong into gold.
Ask rediffGURU Reetika Sharma your insurance, mutual fund and personal finance-related questions.
So far this year, the rupee has fallen by 4.2 per cent, the worst among its Asian peers.
'AUM reached an all-time high of Rs 79.9 trillion in October 2025, driven by strong retail participation and record SIP inflows of Rs 29,529 crore from over 94.5 million contributing accounts.'
New investors or those with lower-than-planned exposure should add US-oriented funds through SIPs.
'Earnings growth will be the main driver of India's market in 2026, with profits expected to rise 9% to 10% in H2 FY26 and accelerate to 12% to 15% in FY27.'
Investors having a moderate-risk profile can use these funds in their retirement portfolios.
Passive funds appeal to investors seeking to avoid the risk of underperformance by the fund manager and minimise the need for frequent chopping and changing of funds.
Currently, India has five publicly listed Reits: Brookfield India Real Estate Trust, Embassy Office Parks Reit, Mindspace Business Parks Reit Nexus Select Trust, and Knowledge Realty Trust.
'Corporates now have multiple funding sources beyond banks, and many are sitting on large cash reserves.'
'It takes time and the experience of a few market cycles to develop awareness about one's true risk appetite.'
Those who have long retirement horizons of 15 to 20 years and seek higher long-term returns may opt for MSF. Investors nearing retirement (under 10 years) or those with low risk tolerance should stay away.
Ask rediffGURU and PF, MF and insurance expert Purshotam Lal your mutual fund, insurance and personal finance-related questions.
Balanced advantage funds (BAFs), which adjust between stocks and bonds depending on market conditions, have increased their equity holdings over the past year, with most schemes now predominantly invested in equities.
The RBI advisory follows a labour ministry request earlier this year seeking the central bank's expertise to identify gaps in EPFO's investment strategy and fund management practices, including accounting, risk management, and internal governance.
Ask rediffGURU Reetika Sharma your insurance, mutual fund and personal finance-related questions.
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