Lately, investors’ sentiments have warmed up to Focused Funds that are witnessing net positive inflows at a time when other subcategories of equity mutual funds are struggling. Does it make sense to invest in Focused Funds at this juncture, especially when the macroeconomic conditions are gloomy? As you may know, India’s Q1FY21 GDP has contracted sharply by…
Amid COVID-19 pandemic and geopolitical tensions, many investors seem worried. Not all are confident of the recovery in the Indian equity market since March lows. Fresh skirmishes and another attempt by China to cross the Line of Actual Control, a 23.9% contraction in India’s GDP growth for Q1FY21 (the worst in four decades), a discouraging job scenario, weak…
A month ago, the investment journals and business dailies were loaded with stories of SIPs (Systematic Investment Plans) delivering negative returns. For investors planning financial goals, it was disappointing and disheartening to see their wealth being eroded –particularly in small-and-midcap schemes. More than half the Systematic Investment Plans (SIPs) in the equity-oriented funds delivered negative SIP returns over 3…
Karlo Duniya Mutthi Mein! Does this tagline ring a bell in your mind? This was 18 years ago when Reliance Infocomm forayed into telecommunication business. Over the years, telecom and technology have bonded together. From 2G technology, India has moved to 3G, to 4G …and soon we will move to 5G. Data is the new ‘oil’ and…
A recent survey of nearly 1,330 people conducted by Nielsen India across 23 Indian cities paints a gloomy picture for the companies dependent on consumer spending in the post-COVID-19 world. Approximately 64% of the respondents expressed that they would spend less on restaurant and movie visits, while 54% indicated that spending on automobiles, luxury brands,…
Historically, mutual fund houses have launched maximum New Fund Offers (NFOs) in ascending market conditions. However, now seeing the unwavering participation of investors — particularly the retail ones in equity-oriented mutual funds (through lump sum and Systematic Investment Plans) — fund houses are appealing investors with New Fund Offers even amidst the heightened volatility of the Indian…
Modi 2.0 completes its first Anniversary on May 31, 2020. Preparations are on in full swing to highlight the “historic achievements” of the government (resorting to technology). Abrogation of Article 370, Article 35A, construction of Ram Temple (after the Apex Court’s verdict), the contentious Citizen Amendment Act (CAA) and the National Register of Citizens (NRC)…
These are tough times for debt mutual fund investors. On the one hand, there has been a recent instance of Franklin Templeton Mutual fund winding up six of its debt schemes that had a very high-risk exposure to low rated and toxic debt papers (and cited COVID-19 dislocations to put a stop to losses); and on the…
On the eve of May 12, 2020, the Prime Minister of India, Narendra Modi, announced a massive stimulus package worth Rs 20 lakh crore (purportedly almost 10% of India’s GDP, but in reality around 1% of GDP) to counter the Coronavirus or COVID-19 crisis and said it will cover farmers, labourers, the middle class, the…
In the current times, debt mutual funds are proving to be theoretically right but practically imprudent. Whenever they lose investors’ money, mutual fund houses take refuge under the standard disclaimer: Mutual Fund Investments are subject to market risks, read all scheme related document carefully. Plus, debt mutual funds are often misleadingly presented to investors as low-risk…
