A business cycle is a journey across four phases of growth in business activity, observed in acceleration/deceleration across factors such as volume growth, pricing power, competitive intensity, cost consciousness, capex intensity, ROCE (Return on Capital Employed) and business sentiment. Business cycles are widely understood in economics to cover the journey of periods of expansion and…
Target Maturity Funds are appropriate for investors who like the predictability of returns provided by bank deposits since they have a reduced relative interest rate risk and give more consistent and predictable returns. A Target Maturity Fund is the ideal option for investors with a predetermined investment horizon because the strategy is designed to eliminate…
The target maturity approach allows you to tailor your investment to your specific goals and is apt in the current interest rate environment. Target Maturity Funds with pre-defined maturity have the potential to generate better risk-adjusted returns. The yields on the short to medium end of the maturity curve in the Indian debt market appear…
Investors would find it comforting to have some consistency in their portfolio, given that interest rates are gradually rising. As a result, they try to invest in opportunities that would provide such stability. Target Maturity Index Funds have less interest rate risk than traditional bond funds if held until maturity, which helps sustain the rising interest…
In the Indian Debt market, the short to medium bend of the yield curve looks attractive. It is currently driven by domestic and global macroeconomic indicators, making investments with a maturity of 5-6 years an ideal investment option for debt investors. Target Maturity Funds are debt funds with predetermined maturities that are passively managed. These funds…
India is at the cusp of multiyear growth as economical, political and demographic factors all align, and sustainable progress in the consumption story and related sectors is expected in the years to come. With the entry of new sectors more heavily represented in the midcap segment, markets have expanded. Indian Midcaps provide a greater variety…
Debt as an asset class plays an important role in a portfolio. It can act as a cushion in periods of significant market volatility, holding steady or falling substantially lesser than equity, generate regular income, and provide attractive investment opportunities, especially when real or inflation-adjusted interest rates are higher than long-term averages. Given that the…
“We are living through a generational shift in our economy and society. Digital technology is the most malleable resource at the world’s disposal to overcome constraints and re-imagine everyday work and life.” – Satya Nadella, Microsoft CEO. While technology continues transforming the world – the demand for digital services is steadily increasing. According to NASSCOM, revenues…
While India seems to be on track to achieving its ambitious goal of becoming a USD 5 trillion economy by 2025, the banking sector is likely to play a strong role in enabling this growth. Further, as the economy grows, the banking sector will also witness high growth. Indian banking sector holds tremendous growth potential,…
You may have come across a plethora of mutual fund schemes offering different objectives. However, in order to select the best mutual fund schemes evaluating their performance is a crucial task for investors. Keeping a tab on the performance of mutual fund schemes in your portfolio helps you decide whether to hold your existing investment or exit them…
