Banking sector funds are a type of sectoral mutual fund that invests primarily in banking and financial service companies. Being a sectoral fund, it will invest 80% of its total assets in equity & equity related instruments of banks and financial instruments. The Indian banking system consists of 27 public sector banks, 26 private sector…
Debt funds predominantly invest in fixed income securities such as bonds, corporate debentures, Government securities, and money market instruments with the objective to provide steady and regular income. Debt mutual funds are less riskier funds than equity funds. Note that, less risk is not the same as “risk-free/safe…” Unfortunately, debt mutual funds were presumed to…
It is observed that after every big market crash, the equities markets tend to bounce back to make for a bull run. The recent market crash that happened due to the lockdown and liquid tap running thin, the market’s valuation has dropped. This seems like a great opportunity to consider investing in equities. But the…
If you have been keeping a track and recall reading my colleague Ms Divya Grover’s articles on Franklin Templeton Mutual Fund’s decision of winding down six schemes and the all previous updates; which involves: SEBI issued an audit notice to Franklin Templeton to provide information regarding the dealings of the six wound-up schemes, SEBI hired the…
Last week if you recall I wrote about, How the Capital Regulator is Proactively Ensuring That Debt Funds Remain Liquid. Looking at the illiquidity issue faced by Franklin Templeton Mutual Fund who decided to wind down six of its debt schemes, the capital market regulator tweaked the percentage holdings of government bonds of certain debt funds’…
During the COVID-19 lockdown, individuals are losing patience — moving freely and not following the necessary social distancing. This lack of civic sense and maturity on their part is weakening our fight against the deadly contagion pathogen. The capital markets, as a result, also has witnessed intense volatility and bears are running lose. Certain sections of…
With Franklin Templeton Mutual Fund winding down six schemes, followed by Aditya Birla Sun Life Mutual Fund’s decision to close two schemes for investing has added to the woes of the already crippled debt investment market. [Read: Lessons Learnt from the Debt Fund Crisis] The severe liquidity crisis prevented investors from making redemptions and they have…
Gold has indeed proven itself as an effective hedge against any downside risk. It has seen a sharp rise in the price rally since the first case of Novel Coronavirus was reported in November 2019. In the beginning of March 2020, gold prices fell marginally, however it is on the upswing and has retained its level above…
In current pandemic situation with the lockdown and a disruption to the economy, the markets have caught the flu with coughing fits of volatility. Active management has become difficult for many fund managers and investors are distraught with their capital erosion. Thus, actively managed funds seem to have taken a back seat for now. And…
The markets have dipped sharply due to the global pandemic and there seems to be no respite soon enough, making investors anxious. Index funds are now being eyed to offer some relief. As you may know, Index funds are passively managed funds. This implies that the fund does not attempt to outperform the benchmark index, it replicates the…
