Overnight funds are open-ended debt mutual fund schemes that invest in securities that mature in one day. The category usually invests in Tri-party Repos, Reverse repo, and other debt and money market instruments with one-day maturity. It is a low-risk, low-return bet compared to its peers in other debt mutual funds category. In the past,…
Indian investors have participated primarily in domestic markets, restricting their portfolio from global equities. However, investing in global markets allow investors expand their investments for healthier returns, with several opportunities to invest across sectors, geographies, and other emerging markets. The Indian markets have a lower correlation with the international markets, which reduces the overall portfolio…
Low interest rates on bank fixed deposits, small saving schemes, and fastening retail inflation has been a rather disappointing picture for a large section of investors. Gold too after peaking in August last year lost its sheen. In the calendar year 2021 so far, gold in Indian Rupee (INR) terms has lost -4.6% (as of August 2,…
Since the market crash of March 2020, the equity market has shown an extraordinary rally. After stumbling to a multi-year low, the equity market not only recovered but also scaled new all-time high levels. Unlike the previous market rally, the market has been witnessing a broad-based rally with mid and small-caps joining the optimism. In…
The highly anticipated normalization of economic activities, revival in corporate earnings, high liquidity & lower rates, supportive global sentiment, faster pace of vaccination, and continued policy support from the government and RBI have contributed to an optimistic outlook in the Indian equity markets. The current market conditions are favourable for investing in the Flexi cap…
Mutual fund is one of the most convenient ways for investors to gain exposure across various securities and asset classes. You can choose to invest online or offline depending on your preference. However, the online mode is far more convenient–you can transact at any time and track the performance of your schemes whenever you want. In…
The investment universe of a mutual fund scheme may comprise over 200-300 stocks. From this the fund managers usually select 50-60 stocks that become part of the final portfolio. However, focused funds have the mandate to limit their holding to not more than 30 stocks. Focused funds aim to use the fund manager’s expertise in stock picking, along with…
A healthy financial sector plays an important role in the economic growth and keeps the wheels of the economy running. The banking and financial services sector has grown at a faster pace than the GDP. After the severe impact of the second wave of COVID 19 pandemic, the economic growth is expected to bounce back…
I remember my conversation with a client Mr Venkat in September 2018. He had called me from Singapore, soon after he read about the IL&FS debt crisis. Basically, he was concerned about his investments in liquid and debt mutual funds and wanted my insights on the event that had panned out. While talking to Mr…
The interest rates have bottomed out but there is an expectation of a gradual upwards movement going ahead. The prices of debt instruments such as fixed income securities or bonds are inversely related to the interest rates. Notably, when interest rate rises, the price of bonds fall and vice versa. The debt mutual funds category…
