As the name indicates, Midcap mutual funds are equity-oriented mutual funds that invest at least 65% of its assets in equity and equity related instruments of mid-cap companies. These companies are ranked from 101 to 250 in terms of market capitalization. The Midcap companies have witnessed underperformance in markets between 2018 and early 2020s due…

Around this time of the year, taxpayers start exploring various tax-saving avenues to avail a deduction of up to Rs 1.50 lakh under Section 80C of the Income Tax Act, 1961. However, the last-minute rush often results in investors choosing tax-saving investment avenues that may not be best suited for them. Financial product distributors and…

Despite witnessing some consolidation in the past few days, the Indian equity market continues to trade at all-time high levels. However, amidst the exuberance, there are reasons to be cautious about your investments. Here is why… Even after a year since COVID-19 began to spread India and the world continues to reel under the impact…

With the Indian market indices NIFTY 50 and S&P BSE Sensex hitting all-time high and recovering the losses from the market crash, most mutual funds have witnessed improvement in performance. However, there are still many actively managed funds that have been unable to catch up with the benchmark. Therefore, Passive investing strategy is increasingly becoming popular among…

The equity market at an all-time high has raised concerns that valuations have run ahead of the fundamentals and some consolidation in the near term may be imminent. However, I believe that unless the financial goal for which you are investing is due in the next 2-3 years, there is no reason to be worried…

The Franklin Templeton fiasco, as you know, was an extended episode causing anxiety for many debt mutual fund investors. Finally, here is some respite for unitholders of the six debt mutual fund schemes that were wound up last year… The Supreme Court has dismissed all petitions challenging the validity of the e-vote for winding up…

Aggressive hybrid funds, also known as Equity hybrid funds allow you to invest in a mixed portfolio of equity and debt securities. A combination of these asset classes offers a high level of diversification, hence, lowering the risk as compared to pure equity funds. Thus, aggressive hybrid funds can provide some stability to your portfolio.…

During the Union Budget 2021 speech, Finance Minister Ms Nirmala Sitharaman announced a proposal to set up a permanent institutional framework to enhance corporate bond liquidity during times of stress and to, generally, enhance liquidity in the secondary market. The proposed institution will purchase investment-grade debt securities both in stressed and normal times and facilitate…

After a cumulative 250 bps rate cut since 2019, interest rates appear to have bottomed out and are expected to inch up in the coming years. When that happens, there will be an adverse impact on the returns from long duration debt funds. Thus, the short-term debt fund category currently looks attractive from investment point…

The Union Budget 2021 has been one of the most decisive budgets of recent times. The government not only allocated more on infrastructure, healthcare, education, among other sectors but also did not burden the common man with higher direct taxes (although some relief personal income tax was expected amidst the pandemic). The focus was clearly…