The constant rise in Covid-19 cases domestically and across the globe has deepened concerns about the health of world economy. Investor sentiments have dented as recession gripped global economy following extended lockdown phases in major economies to curb the virus outbreak. Amid this challenging economic growth prospects, it is important to add an element of stability to…
Capital market regulator, SEBI has partially modified rules on applicability of Net Asset Value (NAV) in case of purchase of mutual fund units (excluding liquid and overnight schemes). With effect from January 01, 2021, investors in equity and debt funds will be allotted mutual fund units based on the closing NAV of the day on…
Market regulator SEBI has caused a stir with the recent announcement of tweak in the characteristics of multi cap funds. Multi cap funds will now have to invest at least 75% of its total assets in equities, with at least 25% exposure each in large cap, mid cap, and small cap stocks. Most multi cap funds…
Surging COVID-19 cases and the slow pace of demand revival has added to the worries that worst may not be over for the economy yet. This has lead equity mutual fund investors to wait on the sidelines before redeploying their hard-earned money. Investors who do not want to take very high risk in the current…
The six-month moratorium on outstanding term loans that RBI provided to borrowers in a bid to help them tide over the economic fallout from the pandemic ended on August 31. For borrowers who are still facing difficulties in meeting their payment obligations, RBI has allowed a one-time restructuring of corporate and personal loans for eligible…
Multicap funds invest in a diversified portfolio across sectors and market capitalisation and have the flexibility to switch weightage between these elements based on current market conditions and (potential) future prospects. Large caps fare well even during market downturns, while mid and small caps tend to do well when the economy is growing. This makes…
The recent incident of Franklin Templeton winding up six of its debt schemes as well as the rising spate of defaults and rating downgrades in debt instruments has driven investors away from credit risk-oriented debt mutual funds. In order to protect the interest of investors and to further enhance transparency, SEBI has revised disclosure norms pertaining to transactions in…
The swift recovery of the equity market post the COVID-induced crash has surprised savvy investors. Despite the fact that fresh cases of COVID-19 continue to surge and the economic outlook remains uncertain, the market is now inching close to its all-time high levels — the S&P BSE 500 has rebounded around 55% from its lows…
Tax planning is an important aspect of financial planning. We work hard to create wealth for our future; wouldn’t it be nice if we can save our wealth from taxes so that we can work towards our dreams of a bigger house, better car, a foreign vacation, etc.? Equity-linked Saving Scheme (ELSS), also known as…
Though small cap stocks generally tend to be highly volatile, the small cap category has been under immense pressure over the last two years. This poor performance can be attributed to expensive valuations in the segment until a couple of years ago, prolonged economic slowdown, and demonetization. Post the pandemic outbreak, the category lost more…
