If you are planning to invest for long-term financial goals such as your retirement, children’s higher education, buying a dream home, etc. then equity mutual funds are an excellent choice. Over the long term time frame, investment in equity mutual funds can outperform most other asset classes such as debt, gold, and real estate. Though equity as…
Securities & Exchange Board of India (SEBI), the capital market regulator, had announced in a circular dated October 04, 2021, that no mutual fund distributor, online platform, stock broker, or investment advisor pools investors’ money in a bank account and then transfer it to the fund house for purchasing units of schemes for those investors. The…
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. Such a strategy provides fund managers with more leeway in building the portfolio. The Flexi-cap Funds category has gained a lot of attraction among investors due to their ability to perform well during upward as well…
The Mid-cap space seeks to invest in emerging future market leaders. Mid-cap stocks are known for their volatile nature, which concerns many investors. Keep in mind that they offer high return potential along with higher volatility compared to Large Caps. Given that, mid-cap stocks hold the potential to offer eye-catching returns when the tailwinds favour…
For any individual having a shelter of your own is one of the most important needs, namely after food and clothing. India’s population is expected to grow by 2050; with the increasing population, more housing would be required. The rising trend of nuclear families may also help in driving the demand for housing. As a…
Focused Funds seem to have lost their way over the last 2-3 years while some other sub-categories of equity mutual funds such as Small-cap Funds, Mid-cap Funds, Dividend Yield Funds, and Value Funds have outperformed. As per SEBI’s categorization rules, a Focused Fund is a type of open-ended diversified equity scheme investing in a maximum of 30 stocks and at…
The year 2021 witnessed about 65 companies listing their shares in the primary market. These companies collectively raised over Rs 1.3 lakh crore through IPO – the highest ever amount in any calendar year. Many more IPOs are lined up in the calendar year 2022. Equity Mutual Funds across categories actively participated in IPOs, especially in new-age tech…
The conservative investor’s primary requirement would be for fixed income with safety and liquidity. In a favourable economic environment defined by steady liquidity, consistent moderate inflation, and the RBI’s interest rate stance, debt yields remain attractive. This environment is expected to maintain yields for short to mid-term. A target maturity investing strategy is ideal to…
Target Maturity debt funds differentiate itself from normal open ended mutual funds by having a roll down approach with fixed maturity date, making potential returns visible for investors. Target Maturity Funds carry features of several traditional fixed income investments and provide relatively higher returns. Considering the current volatile and uncertain environment where most investors are…
The RBI issues Bonds/Securities on behalf of the Government of India to borrow money from the financial market and meet its fiscal deficit. These are issued from time to time to raise funds for various governmental purposes. Government securities or G-Secs are highly liquid and safe investment avenues with reasonable yields. These government-backed instruments carry…
