Foreign investors have pulled out Rs 26,533 crore from the Indian equity market this month so far owing to increasing allocations to China, concerns over muted corporate earnings and elevated valuation of domestic stocks. While the sell-off continues, the quantum of net outflows has significantly reduced compared to October, when Foreign Portfolio Investors (FPI) withdrew Rs 94,017 crore ($11.2 billion) on a net basis.
Debt funds typically held 0-5 per cent of their portfolio in cash and cash equivalents before this Sebi diktat.
Kumaraswamy also ruled out any differences among JD-S MLAs over cabinet berths and allocation of portfolios.
Alternative investment funds (AIFs) - investment vehicles favoured by the affluent - have topped $50 billion (Rs 4.3 trillion) in total investments for the first time during the April-June quarter, according to the latest data from the Securities and Exchange Board of India. The industry's commitments have approached Rs 12 trillion ($140 billion), marking a 40 per cent increase over the past year. The amount raised and deployed stood at Rs 4.74 trillion ($56 billion) and Rs 4.32 trillion ($51 billion), respectively, the data shows.
Investors should match their investment horizon with the fund's portfolio duration.
'A dynamic bond fund acts like a gilt fund in a rate cut scenario and like a conservative short-term bond fund when rates rise.'
The Indian markets have delivered high long-term returns, second only to the US.
If you lack an emergency fund or it is depleted, use part of your bonus to build or replenish it.
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.
Foreign investors have pulled out Rs 22,420 crore from the Indian equity market so far this month, owing to high domestic stock valuations, increasing allocations to China, and the rising US dollar as well as Treasury yields. With this sell-off, Foreign Portfolio Investors (FPIs) have recorded a total outflow of Rs 15,827 crore in 2024 so far. As liquidity tightens, FPI inflows are expected to remain subdued in the short term.
Here's how to get high returns from equities...
Investors should allocate 10 to 15 per cent in their portfolios to gold through sovereign gold bonds.
Differences between the Shiv Sena and the Bharatiya Janata Party over portfolio allocation blew over on Wednesday with Anant Geete deciding to take charge as heavy industries minister after party chief Uddhav Thackeray held "satisfactory" talks with Prime Minister Narendra Modi over the matter.
'Exposure to small and midcap stocks exceeded desired levels in many portfolios, prompting rebalancing.'
Tamil Nadu Chief Minister M K Stalin's Cabinet, including him, would be 34-member strong and he has retained senior leaders like Duraimurugan and over a dozen shall be ministers for the first time.
Ask rediffGURU and PF and MF expert Janak Patel your mutual fund and personal finance-related questions.
Begin the year-end review by assessing whether your portfolios are on track to achieve your life goals.
Days after Nationalist Congress Party leader Ajit Pawar joined the Maharashtra government, the Shiv Sena (UBT) on Wednesday claimed that only alleged economic offenders Mehul Choksi, Nirav Modi and Vijay Mallya were left to be inducted into the Bharatiya Janata Party.
rediffGURU Ramalingam Kalirajan answers your personal finance queries.
The answer depends on your financial goals and risk appetite, says Certified Financial Planner Ramalingam Kalirajan, and explains why.
BJP leader Pema Khandu took oath as the chief minister of Arunachal Pradesh for the third consecutive term on Thursday.
Ask rediffGURU and PF and MF expert Janak Patel your mutual fund and personal finance-related questions.
If you spread your investments and get exposure to many asset classes, then that is called diversification. Asset allocation is the process of allocating your money to different investments. And they offer tremendous advantages, says Rishi Piparaiya.
'A long-term investor with a 4 to 5 year horizon could invest in this theme via SIPs.'
After a stellar 2023, the mutual fund industry sustained its growth momentum in 2024 with an impressive Rs 17 lakh crore surge in assets, driven by buoyant equity markets, robust economic growth, and increasing investor participation. Experts are predicting the positive trend will extend into 2025.
'An equity-based index fund should be held for more than five years to average out market volatility and achieve financial goals.'
The froth in the small and midcap (SMID) space is limited to a few pockets, but regulatory scrutiny could lead to sustained volatility, observe India's top-drawer wealth managers. They add that they have been advising clients to reduce their exposure to smallcaps. Anand Rathi Wealth, which manages investor wealth through mutual funds (MFs), reports that its exposure to smallcap stocks, both through MFs and directly, has decreased by nearly 7 percentage points in the past few months, now standing at 23 per cent.
Most investors should have a 5% to 10% allocation to gold for diversification. They should stagger their investments to mitigate timing risk.
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.
'Ideally, one should not time SIPs.' 'If people churn their SIP portfolios, then they are equating the concept of SIPs to lump sums.'
Ask rediffGURU and PF expert Nitin Narkhede your mutual fund and personal finance-related questions.
Asset allocation - the way you divide your capital among different investment options - accounts for more than 90 per cent of your portfolio's overall return. Which is why it's so very important to get the asset allocation right in your investment portfolio.
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.
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
'Young investors with limited funds should ensure that investing in NPS does not crowd out their other, more liquid, investments.'
'In phases when smaller stocks do well, an equal-weight index performs better than its market cap-weighted peer.'
An allocation to ESG theme funds can bring down the overall risk of an equity portfolio. Investors with long-term financial goals, such as retirement, should not ignore sustainable investing.
With stock prices at elevated levels, investors must cut valuation risks in their portfolio
Ask rediffGURU and PF and MF expert Janak Patel your mutual fund and personal finance-related questions.
