'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.'
Investors must account for currency depreciation in their financial plans and use instruments that can cushion the erosion in purchasing power.
'For the initial decade, I consistently advise young professionals to prioritise career development and income growth rather than market analysis.'
'The net inflows into MF schemes may also have been lower last month, with investors booking profit and taking a more measured approach amid elevated valuations.'
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.
Cash holdings of equity mutual fund (MF) schemes moderated in September amid a slowdown in fresh inflows. Equity MF schemes held cash worth Rs 1.76 trillion at the end of September 2025 - about Rs 400 crore lower than the previous month, according to a report by Nuvama Alternative & Quantitative Research.
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.
MFs offer scale, simplicity, liquidity, and tax efficiency, and are an excellent vehicle for disciplined SIP investing. PMS is better suited for larger portfolios with equity allocation of Rs 3 crore to Rs 5 crore.
'The outlook for the next Samvat is more constructive, as many of the earlier drags are gradually becoming supports.'
SEBI's blockbuster reforms are rewriting the rules of mutual fund investing -- faster growth, sharper transparency, and smarter safeguards that put investors first, explains Ramalingam Kalirajan.
Ask rediffGURU Naveenn Kummar your insurance mutual fund and personal finance-related questions.
The Insurance Regulatory and Development Authority of India's (Irdai's) decision to allow insurers to hedge risks through equity derivatives will help them manage market volatility and protect policyholder returns. However, this move is unlikely to alter their investment strategies.
Inflows into sector and thematic (S&T) funds fell sharply from around 5,711.6 crore in February 2025 to about 170.1 crore in March 2025 - a decline of 97 per cent. With many such funds underperforming, investors need to assess whether to remain invested or exit.
'Reduce your equity allocation, put that allocation into gold and fixed income.'
Investors should avoid making drastic changes to their asset allocation during a market correction.
'Asset allocation should change only if your goals, life situation, or risk profile have changed.'
'Choose an equity allocation that will allow you to remain invested even if the market falls by 50 to 60 per cent.'
Debt-ridden telecom operator Vodafone Idea on Tuesday approved the allotment of equity shares worth Rs 16,133 crore to the government, which post-allocation has become the largest shareholder with a 33.44 per cent stake in the company. The shares have been allocated to the government in lieu of conversion of interest dues arising from deferment of adjusted gross revenue and spectrum auction payments, the company said in a regulatory filing. "...it is hereby informed that the board of directors of the company has, at its meeting held today approved the allotment of 16,133,198,899 equity shares of face value of Rs 10 each at an issue price of Rs 10 per equity share aggregating to Rs 161,331,848,990 to the Department of Investment and Public Asset Management, Government of India," the filing said.
Mutual funds (MFs) reinforced their record monthly inflows in October with an investment of Rs 87,000 crore (up to October 29), softening the downside pressure on domestic markets. Their prior record for monthly inflows was Rs 48,139 crore in May. This unprecedented monthly buying partially countered record monthly sales by foreign portfolio investors (FPIs) of Rs 1.1 trillion last month.
'A 20 per cent equity allocation to ESG funds is a good start.' 'As more evidence on ESG performance builds, investors may increase allocations.'
Following the sharp run in markets, valuations across the board have become elevated. The National Stock Exchange Nifty50 Index now trades at a 12-month trailing price-to-earnings (P/E) multiple of 24.3 times, 18 per cent higher than this year's low of 20.5 times. The valuation expansion in the broader markets has been sharper.
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.
Adopting overly aggressive strategies without considering risk could lead to significant losses during the next downturn.
Since MAAFs invest across multiple asset classes, they offer diversification.
Equity-focused schemes may perform better in a bull market, while debt-oriented ones may offer greater stability during volatile periods.
Largecap, flexicap, and balanced advantage funds together recorded a net inflow of Rs 9,363 crore in August, representing a 70% increase from the previous month's total.
Data from Amfi shows that NAV of every one in two BAFs declined 1.5% or less on Monday compared to a 3.13% decline in Nifty 500.
'In phases when smaller stocks do well, an equal-weight index performs better than its market cap-weighted peer.'
The rising market poses a dilemma for investors on whether to continue buying, reduce equity holding, or exit equities altogether.
Find out whether the fund is equity, debt, or hybrid oriented. 'Understand the portfolio composition and whether it suits your risk appetite and horizon.'
A portfolio can be rebalanced by either selling a portion of the outperforming asset class or by buying more of the underperforming asset class.
'A mid-year review makes the end-of-year financial review manageable and less stressful.'
Investors' desire for companies to prioritise returning cash to shareholders through share buybacks, dividends or mergers and acquisitions (M&A) is at the highest level since July 2015, said a survey by BofA Securities (BofA). Nearly 30 per cent of respondents wanted companies to do so. As many as 226 respondents with $572 billion worth of assets under management (AUM) participated in the March fund manager survey (FMS), said BofA.
'If equities perform well in a year, withdraw money from equities. If the equity market is down, shift withdrawal to the debt portion.'
Regardless of market levels, invest in stocks and equity mutual funds in a staggered manner.
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).
'Like every Budget, this time, too, there is chatter around tinkering with the long-term capital gains tax.' 'Investors may not want to jump into the markets until there is clarity on this front.'
'If the majority falls short of expectations, it may prompt initial adjustments in investor sentiment.'
Balanced advantage funds have the potential to earn superior risk-adjusted returns for the investor and offer a smoother investment journey.
'Midcap and smallcap indices are trading in the expensive zone.'
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