Existing investors in equity mutual funds have a reason to rejoice with the equity market scaling new highs. On the contrary, if you are a new investor looking to start your mutual fund journey or if you want to make fresh investments towards your financial goals, then you have probably asked, ‘Is it the right time to start…
The term ‘Business Cycle’ refers to the fluctuations of the economy between periods of expansion and contraction measured by various indicators like GDP growth, Index of Industrial Production (IIP), Interest rates, Inflation, and other macroeconomic variables. Our economy generally experiences a continuous business cycle of four distinct phases such as recovery, growth, expansion and contraction.…
After outperforming large-cap stocks for over a year now, small-cap stocks remained under pressure in the last couple of weeks. The Nifty Smallcap 100 index declined 4.5% in the last one month even as large-cap indices continued to soar higher. Notably, valuations across market caps have turned expensive. However, this may not mean the end of the…
Different market cap segments have distinct benefits as well as risk profiles. An investment in large-cap stocks offers the advantage of steady growth at lower volatility. On the other hand, the mid-cap and small-cap stocks have the ability to outpace the large-cap stocks, but they are highly volatile. A combination of different market caps in…
Are you taking unwarranted risks to generate superior returns on your mutual fund portfolio? Don’t ignore this question unless you are 100% sure that you are not. Risks and returns go hand in hand. Any mutual fund scheme that fetches you high returns can, potentially, exposes you to high risks as well. Sectoral and Thematic…
Retirement is a phase where you lead a worry-free life and reap the fruits of your hard work. Assuming that you had made prudent investment choices during your work life, you would have accumulated a good retirement corpus for your golden years. Now the question arises, how should you manage your investment portfolio once you…
Flexi-cap fund is a relatively new category under equity mutual funds that invests dynamically across market caps. SEBI had asked multi-cap funds to invest at least 25% of the corpus each in large-caps, mid-caps, and small-cap stocks. This is why most multi-cap funds have now switched to the flexi-cap category to retain their original portfolio characteristics.…
How do you select a mutual fund? What is your thought process behind picking a mutual fund from more than 2,500 schemes available? Do you base your mutual fund investment on the popular children’s game “eenie meenie miney mo”? Or are you blinded by the star ratings given to mutual fund schemes? Do you make…
“Diversification is protection against ignorance. It makes little sense if you know what you are doing.”-Warren Buffet Many equity market investors take the aforesaid statement of the legendary investor too seriously — and mostly without understanding the true meaning of it. Focused Funds, which hold the mandate to hold a concentrated portfolio (maximum of 30…
In the past Value investing has provided attractive returns over the long term. Value investment opportunities can be found across market cycles, sectors, as well as companies. Investors have had several value investment opportunities over the last two decades as a result of events like global financial crisis, demonetisation, and recently the COVID-19 pandemic. Value…
