Target Maturity Index Funds are passively managed debt funds with pre-defined maturity dates. These funds buy and hold similar maturity bonds that are included in the underlying bond index. Target Maturity Index Fund serves as an alternative to Fixed Deposits offered by banks, as in the current scenario, interest rates on the deposits are relatively low.…
The Indian equity market has seen high volatility in 2022 due to various macroeconomic and other domestic and global factors. Given the current market conditions, mid-cap and small-cap stocks have significantly decreased in price and are available at lower valuations. Many investors consider this a good entry point to diversify your portfolio with small-cap and mid-cap…
Equity as an asset class tends to be more volatile compared to other asset classes. Many equity investors are alarmed by the increased market volatility given the backdrop of escalating geopolitical tensions, rising interest rates, and spiralling inflation. As a result, investors are seeking low volatility strategies, which endeavours to invest in securities whose value…
We are slowly approaching the second half of the financial year 2022-23. Many of us often delay our tax saving plans and keep on procrastinating until the last quarter of the financial year. I believe that the plans for tax savings should not be kept until the last moment. It may be an apt time…
In these prevailing volatile market conditions, the strategy of tracking a specific index that measures the performance of market capitalisations across sectors under one roof has drawn investors interest. Investors looking for balanced diversification and anti-momentum approaches to play equity index funds could consider buying units of equal weight index funds tracking the Nifty 50 and…
Large & Mid-Cap Fund is a relatively new category of equity mutual funds that offers you an opportunity to create wealth by investing in an optimum mix of large-cap and mid-cap stocks, i.e., the leaders of today as well as the future leaders. Thus, you benefit from the stability of large-caps and the high growth potential of mid-caps…
The ideal time to start your tax planning process is at the beginning of the financial year. Doing so allows you to explore various tax-saving avenues and pick the most suitable one that aligns with your investment objective, risk profile, and investment horizon. Under Section 80C of the Income Tax Act of 1961, tax-saving mutual funds or Equity…
The popularity of passive funds in India has been on the rise. The Assets Under Management (AUM) of passive funds, including gold ETFs, have jumped nearly four times over the last three years—from just Rs 1.5 lakh crore in August 2019 to Rs 5.9 lakh crore in August 2022. Graph 1: The Rising AUM of Passive Funds Data…
Indian economy witnessed a gradual downfall amidst the pandemic; however, there has been a silver lining to it. The post-COVID scenario came up with some potential benefits and paved the way for different sectors which have the potential to flourish in the coming years. The adoption of digital technological advancements, telemedicine, etc., are all boosting…
Flexi-cap Funds have the flexibility to invest across market cap segments, viz. large-cap, mid-cap, and small-cap, without any upper or lower limit. Diversifying your investments across market caps, preferably through a Flexi-cap Fund, can reduce portfolio risk and mitigate volatility, thereby maximising portfolio returns over the long term. Depending on market conditions, liquidity conditions, and valuations,…
