Diversification across geographical boundaries can help mitigate portfolio risk. Exposure to foreign equities can potentially give you higher returns when other economies grow at a faster pace than the domestic economy. It also enables you to exploit a particular opportunity only available in offshore markets. Moreover, it can act as a hedge against rising foreign…
The Indian mutual fund industry seems to be going through a transition phase. With many actively managed funds struggling to keep pace with their respective benchmark indices over the last few years, investors have started shifting focus towards passively managed funds. The idea is to generate returns in line with the markets. Seeing the increase…
India reported its first COVID-19 case on January 30, 2020, in Kerala. Infections thereafter rose in many other states, and the Modi-led-NDA government eventually announced a nationwide lockdown. The effects of a lockdown were clearly visible on the economy. But the sector or theme that has benefited the most is Pharma and Healthcare. Since the March 23 low, the…
In May 2020, when the government announced an Atmanirbhar Bharat stimulus package of over Rs 20 lakh crore— purportedly equal to 10% of GDP, many investors couldn’t trust what they heard. But in reality, the package was nothing more than 1% of GDP, a damp squib! The government allocated Rs 1 lakh crore to the agriculture sector for building…
A significant number of large cap funds have struggled to outpace the benchmark index in the last few years. However, if you have invested in a large cap fund to achieve a particular goal, it is important to ignore the short term underperformance and stay invested till you reach the set target. Mutual fund managers…
Healthcare and Pharma sector is of prime importance for the welfare of an individual. Due to the increase in life span, and growing population, higher rates of chronic health conditions and exponential yet costly advances in digital technology continue to push healthcare costs sky high. After the recent pandemic this sector has got a major…
When an investor deploys his/her hard-earned money in any mutual fund scheme, often three aspects are looked at: the scheme’s investment mandate; its investment objective; and the performance track record. But when the fund manager of the scheme does not stick to the investment mandate set out, not only does it potentially endangers the scheme’s investment…
In April, when the debt securities faced heightened redemption pressure amid COVID-19 crisis, liquidity in the market dried up. Therefore, many debt mutual funds opted for inter scheme transfers (IST) of bonds from riskier categories to other schemes of the fund house to meet redemption demand. The data from SEBI shows the number of inter…
The markets are largely like a rollercoaster with more downs, due to the global pandemic and there seems to be no respite soon enough. Since March, work from home has become new normal for many companies to survive the impact of COVID-19 pandemic, this is an opportunity for various firms to expand their horizons further. Thus,…
The equity market has recovered most of the losses since its lows of March. S&P BSE Sensex, the bellwether index, has now reclaimed 40,000 levels for the first time since February. Anticipation of better Q2 corporate earnings, improvement in business activities, US stimulus package hopes, among others have been the encouraging factors for the markets.…
