It is quite intriguing that whenever mutual fund schemes perform well, fund houses attribute the success to their investing prowess but whenever something goes wrong, they point at unforeseen challenges. This is bizarre and improper because asset management companies and fund managers are also supposed to deal with challenges in play and limit the downside…
The impact of this extended lockdown (3.0) on small and medium enterprises could be overwhelming due to their limited ability to absorb economic and financial shocks. As a result, recovery vide earnings will take time even after restrictions are lifted. Stocks of mid and small caps may therefore face selling pressure. The Finance Minister recently…
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…
The wait for troubles to end in debt schemes seems to be getting longer with each passing day. Various categories of debt funds such as Credit Risk Funds, Medium Duration Fund, and Low Duration Fund, etc. witnessed strong outflows in April on Franklin Templeton Mutual Fund shock leading to significant erosion in assets. In another…
Playing the blame game instead of focusing on solving problems is a common human tendency when faced with a crisis. The world is debating about who to point the finger at for the coronavirus crisis; in India some people are arguing over whom to blame for the (mis)handling of lockdown implementations. Meanwhile, Franklin Templeton MF…
The current market environment is momentum driven, meaning the market movement may not reveal the actual growth scenario. The instability caused by virus outbreak has caused some investors to write-off few specific sectors and shun stocks in that particular sector. However, some of the quality stocks in such sectors, even though inappropriately priced in the…
Uncertain equity market conditions test investors’ patience. In addition, Foreign Portfolio Investors (FPIs) seem worried and have either been dumping Indian equities or turning cautious. Though the case is similar for domestic mutual funds, they, however, have been binging and buying, recognising the value-buying opportunities in the sharply corrected market. As far as investors are…
The Indian equity markets are on a rollercoaster with the uncertainty surrounding the COVID-19 pandemic. It’s been a nerve-racking experience for investors and wealth has been eroded. As we continue to battle COVID-19 with lockdown 3.0, on a year-to-date basis the S&P BSE Sensex is down -23.9% as of May 5, 2020, (see Table 1…
Many investors park their surplus money in debt schemes in an attempt to earn higher returns than Bank FDs. However the recent incident of Franklin Templeton MF winding down six of its debt schemes has dented investor sentiment and sparked speculation about the safety of their investments. The news came as a shocker to the investors because…
Despite the rally we recently witnessed, the market mood continues to be sombre due to the pandemic crisis. FPI outflows from the Indian market persisted in the current month as well, while the recent fiasco at a popular fund house also dented investor sentiments. It is difficult to predict how this situation will unravel eventually.…
