Since the market crash of March 2020, the equity market has shown an extraordinary rally. After stumbling to a multi-year low, the equity market not only recovered but also scaled new all-time high levels. Unlike the previous market rally, the market has been witnessing a broad-based rally with mid and small-caps joining the optimism. In…
Mutual fund is one of the most convenient ways for investors to gain exposure across various securities and asset classes. You can choose to invest online or offline depending on your preference. However, the online mode is far more convenient–you can transact at any time and track the performance of your schemes whenever you want. In…
The investment universe of a mutual fund scheme may comprise over 200-300 stocks. From this the fund managers usually select 50-60 stocks that become part of the final portfolio. However, focused funds have the mandate to limit their holding to not more than 30 stocks. Focused funds aim to use the fund manager’s expertise in stock picking, along with…
Market regulator SEBI has invited public comments/views on the proposal to introduce swing pricing for debt mutual fund schemes. The move is a part of SEBI’s measures to prevent fiascos like Franklin Templeton mutual fund. Swing pricing is an anti-dilution measure that involves adjusting a mutual fund’s net asset value (NAV) if the net inflows…
Many of us delay our tax saving plans till the last quarter of the year. However, postponing it till the last moment is not a prudent practice. If you have not initiated your tax saving plan for the current financial year, start now, before it’s too late. Equity-linked saving schemes (ELSS) are equity-oriented mutual funds that…
In the aftermath of the Franklin Templeton mutual fund fiasco, there has been a lot of concern among the investors about the safety of their mutual fund schemes. Many feared that certain mutual fund schemes might meet the same fate as the six wound-up debt schemes of Franklin Templeton mutual fund. Amid this, a landmark verdict…
A Large-cap investment is considered to be relatively safer compared to a mid-cap and small-cap investment. This makes it suitable for investors with a lower risk appetite. The segment tends to be resilient when market conditions turn adverse. Therefore, investing in large-caps offers you steady returns over the long term. If you prefer the stable growth of large-caps, but are…
Contra Funds are a subset of value style funds. These funds take a contrarian view on stocks and sectors going through a temporary tough phase. The performance of stocks/sectors during this phase leads to distortions in their valuations. Contra Funds aim to capitalise on these distortions by investing in such sectors and stocks that are…
In April this year, SEBI introduced a new ‘skin in the game’ rule to align the interest of the ‘Key employees’ of Asset Management Companies (AMCs) with the unitholders of the mutual fund schemes. As per the circular, a part of the compensation, i.e. a minimum 20% of the salary/ perks/ bonus/ non-cash compensation of…
Aggressive Hybrid Funds invest predominantly in equities and equity-related instruments along with meaningful exposure in debt securities (to reduce volatility). This approach provides you with the benefit of the upside potential of equity investment at a lower risk as compared to pure equity funds. Aggressive hybrid funds could prove to be a worthy long term…
