Midcap and small caps have been the prime victims of the on-going turmoil in the Indian equity markets. Many midcap stocks witnessed sharp correction in their values in the last one and a half year. However, underperformance in the short-term is one of the key traits of midcaps and if chosen carefully, they can potentially…

The Indian Rupee has been depreciating over the past few weeks and settled to its lowest this year on September 03, 2019 as it crossed the 72 per US Dollar mark. The decline was in tandem with other emerging economies as trade tensions between the US and China escalated and triggered weakening of Chinese Yuan.…

The Indian economy is showing clear signs of a slowdown. This has in turn impacted the returns on equity investments, especially in the mid and small cap category. Large caps are better placed to handle economic shocks as these companies have strong business models and sustainable competitive advantage. These companies have the potential to grow…

Market regulator SEBI has agreed to AMFI’s recommendation to allow asset management companies (AMCs) to join inter-creditor agreement (ICA). Mutual funds have had exposures to stressed assets of companies like DHFL and IL&FS. Since mutual funds are not in the business of lending, they didn’t have a proper framework to recover their dues. This has been…

Every sector behaves differently and undergoes series of outperformance and underperformance during varying economic phases and cycles. By focusing on certain sectors that are expected do well in the medium term, a fund can empower investor’s desire of achieving their goals. One such fund that aims to create long-term capital growth with focus on few…

The stock market continues to remain overvalued despite recent corrections and muted corporate earnings growth. In the current financial year, the S&P BSE 500 is trading at an average PE of 26.12, higher than the average PE of 24.7 in 2018-19. Thus, the stretched valuations may lead to more corrections in the market in the…

Large-cap funds aim to provide stability and capital appreciation to investors. Stable businesses, greater market share, quality of management, the sustainability prospects and a proven track record are some of the traits that large caps possess. Thus, they tend to withstand better in times of turbulent market conditions. ICICI Prudential Bluechip Fund is one such fund…

Aggressive Hybrid Funds aim to tactically allocate exposure across asset class i.e. equity and debt. As per SEBI mandate, Aggressive Hybrid Funds can invest 65-80% of its assets in equity and equity related instruments and 20-35% of its asset in debt instruments. SBI Equity Hybrid Fund is one such scheme that is classified under Aggressive…

Value-investing is all about finding `diamond in the rough’. This approach aims to invest in stocks that are trading below their intrinsic value but have the potential to grow over time due to strong business fundamentals. When the stocks in the portfolio realise their true worth, investors are rewarded with higher gains. ICICI Prudential Value…

Stock markets go through volatile phase every now and then. At such times a dynamic asset allocation strategy could help investors tide over volatility and generate better returns. A balanced advantage fund aims to do just that. With a long track record of over 25 years and an AUM of over Rs 43,000 crore, HDFC…