If you lack an emergency fund or it is depleted, use part of your bonus to build or replenish it.
'Exposure to small and midcap stocks exceeded desired levels in many portfolios, prompting rebalancing.'
With stock prices at elevated levels, investors must cut valuation risks in their portfolio
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.
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
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.
rediffGURU Ramalingam Kalirajan answers your personal finance queries.
BJP leader Pema Khandu took oath as the chief minister of Arunachal Pradesh for the third consecutive term on Thursday.
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.
Experts recommend that your portfolio must include up to 10 per cent allocation to gold.
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.
'Ideally, one should not time SIPs.' 'If people churn their SIP portfolios, then they are equating the concept of SIPs to lump sums.'
'An equity-based index fund should be held for more than five years to average out market volatility and achieve financial goals.'
Omkeshwar Singh, head, Rank MF, a mutual fund investment platform, answers your queries.
Most investors should have a 5% to 10% allocation to gold for diversification. They should stagger their investments to mitigate timing risk.
If you work for 30 years, a two per cent difference in pension returns can reduce your final retirement nest egg by 40 per cent. The Rs 9-trillion National Pension System (NPS) seems to be delivering incrementally higher returns than the twice-as-large Employees' Provident Fund Organisation (EPFO), shows a Business Standard analysis of data over the last seven years for the two retirement fund bodies. An investor who put in Rs 100 in retirement savings seven years ago would have seen her NPS nest egg grow to Rs 182 by 2023, according to the analysis based on the Pension Fund Regulatory and Development Authority's recently released Handbook of National Pension System Statistics 2023.
Ask rediffGURU and PF and MF expert Janak Patel your mutual fund and personal finance-related questions.
'Young investors with limited funds should ensure that investing in NPS does not crowd out their other, more liquid, investments.'
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.
Balanced advantage funds have the potential to earn superior risk-adjusted returns for the investor and offer a smoother investment journey.
Arrested Tamil Nadu Minister V Senthil Balaji has resigned from the council of ministers, Raj Bhavan said on Tuesday.
'A long-term investor with a 4 to 5 year horizon could invest in this theme via SIPs.'
Ask rediffGURU and PF expert Nitin Narkhede your mutual fund and personal finance-related questions.
Mutual funds have emerged as an ideal option for investors to achieve diversification. Apart from being a diversified investment vehicle, these offer a variety of funds within an asset class.
The portfolios were cleared by Congress president Rahul Gandhi as the exercise had turned out to be tricky for the party state leaders.
'Given that debt AIFs, by nature, target a higher portfolio return, it is likely to attract investors like HNIs, family offices, etc, looking for a higher yield debt product.'
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.
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.
Ask rediffGURU and PF and MF expert Janak Patel your mutual fund and personal finance-related questions.
'In phases when smaller stocks do well, an equal-weight index performs better than its market cap-weighted peer.'
Those who cannot bear significant downturns (as much as 40 per cent) or have a short horizon should exit entirely.
In two other changes, young MP Milind Deora, MoS in telecommunication and information technology ministry, got additional the portfolio of Shipping in the same rank and Panabaka Laxmi, who was made MoS in textile ministry on Sunday, was reallocated petroleum and gas department.
'Auto, pharma, and industrials have delivered well in the recent quarter, while businesses like quick-service restaurants, consumer staples, and durables have underperformed in volume growth.'
The answer depends on your financial goals and risk appetite, says Certified Financial Planner Ramalingam Kalirajan, and explains why.
All investors should ideally have a 10 to 15 per cent allocation to gold. Whether they invest in gold ETFs or SGBs should depend on their investment horizon.
While selecting a smallcap scheme, go with one that has a good track record and a stable fund manager.
Maharashtra Chief Minister Devendra Fadnavis on Saturday allocated portfolios to newly sworn-in ministers and reshuffled certain portfolios.
As per the Chief Minister's official schedule, Siddaramaiah will be leaving for Delhi by a special flight at 6:30 pm, and will halt in the national capital tonight.
Dwaipayan Bose on how index funds play a key role in the diversification of portfolios and help manage risks
Functional asset allocation recognises that there are three basic asset allocation categories.
