A rising interest rate environment, with an anticipated slowdown in rate hikes going forward and recovering/expanding economic growth, has boosted the short-term debt yield curve. SDLs and AAA-rated PSU bonds offer higher yields than G-secs while maintaining a low credit risk profile owing to the high quality of the instruments. The period of up to…

Target Maturity Funds are flexible and offer a range of tenures with the goal of locating yield pockets that appear attractive at a given point in time. The structure of Target Maturity Index Funds works on decreasing residual maturity, which means each passing year, the maturity of the underlying bonds keeps reducing. In this way,…

Just as the hybrid work culture has become a new-normal post-pandemic, hybrid funds such as Balanced Advantage Funds (also known as Dynamic Asset Allocation Funds), are getting the attention of late. This article includes What are Balanced Advantage Funds or Dynamic Asset Allocation Funds and where do they invest? Why it makes sense to invest in Balanced Advantage Funds/ Dynamic…

Investment in ELSS, also known as tax saving mutual fund, comes with tax benefit of up to Rs 1.5 lakh in a financial year. ELSS also has the shortest lock-in period of 3 years, compared to a lock-in period of 5 years or more in other tax-saving instruments. Over the long run, ELSS can potentially generate…

Investors with an aggressive risk profile prefer to take high risks with the expectation of high returns. These investors may consider investing in Small-cap, which has a high growth potential compared to mid and large-cap companies. At the same time, carry higher risks and is highly volatile than its mid and large-cap counterparts. However, given…

Passive investing offers ownership of a wide variety of stocks, broad diversification, relatively low risk (than actively manages schemes), and low costs. The encouraging response from investors has led several fund houses to come up with many passive funds tracking different indices. The Nifty Next 50 Index consists of the top 50 companies which are…

We are nearing the end of the calendar year 2022, and it is time to welcome 2023. And what better way to welcome the new year by securing your financial future through investments in some of the best mutual funds! What are equity mutual funds? Equity mutual funds are schemes that invest predominantly in equities i.e. shares of companies.…

Momentum factor-based investing has attracted investor sentiment in recent years. The momentum strategy has generated returns higher than broader indices and at times, the outperformance has been significant. Unlike the prevailing buy-low-sell-high canon, momentum factor-based investing takes the opposite approach. It is based on the premise that stocks doing well have momentum and hence, will…

Investing in mid-cap stocks gives exposure to emerging high-growth sectors, with returns higher than what may be possible with large-cap stocks. Midcap Index fairly represents new economy and higher growth sectors like pathological labs, asset management companies and industrials. Midcaps currently present a very attractive opportunity for investors from a valuation standpoint to create a…

Recently, England won the T-20 world cup in style. The present-day English team appears invincible due to its right composition. The team has many in-form all-rounders who provide a nice blend of defence and aggression to the English side. Similarly, in the case of mutual funds, the Hybrid Funds category has a good mix of…