Investors seeking to build a fixed income investment portfolio can now consider investing in passively managed debt mutual funds with the target maturity approach that will provide stability and liquidity by investing in AAA rated government backed instruments at pre-defined maturity tenure/s. Passively managed Target maturity index funds tracking the CPSE/PSU/AAA bond indices within the…
The New Year 2022 has begun on a strong note for the equity market; the S&P BSE Sensex has risen over 1,500 points and currently trading near the 60,000 level. But as we head further into 2022, we are likely to see several economic and financial transitions that could impact the growth of equity market…
The year 2021 was a year of risk-on trade. In India, equities–particularly smaller companies–remained a popular choice among risk-taking investors amidst a buzzing IPO market and expensive valuations. Small-caps mutual funds reported net inflows worth Rs 2,780 crore in 2021 with 68.49 lakh folios as of November 2021 compared to 49.80 lakh folios in December 2020.…
Passive investing has caught investors attention in recent years especially amid the pandemic, as they offer ownership of a wide variety of stocks, broad diversification, relatively low risk (than actively manages schemes) and low costs. Some investors have switched to passively managed schemes such as Index Funds due to the underperformance of certain actively managed…
Value funds have staged a comeback after a deep lull between 2018 and early 2020. The category has clocked superior performance in the last one and a half years and has outpaced the Large-cap Funds, Large & Midcap Funds, and Flexi-cap Funds category. In 2021, the top performing Value Fund generated absolute returns of 66.2%…
The year 2021 was full of milestones for the Indian equity market and equity mutual funds. Domestic equity indices across market cap range such as the S&P BSE Sensex, Nifty 50, Nifty Midcap 150, Nifty Smallcap 250, and Nifty 500 scaled record highs during the year and turned out to be the top performers among global peers. The…
Large-cap Funds underperformed Mid-cap Funds and Small-cap Funds in 2020 and 2021. However, the attractiveness of mid-caps and small-cap stocks compared to large-cap stocks may decline in 2022. Owing to the uncertainty arising from the future course of the pandemic and expectations of a hike in interest rates, the equity market could witness higher volatility in the coming…
Debt mutual fund returns turned unattractive in 2021 as RBI held interest rates at a multi-year low to support economic growth amid the pandemic. Barring a few exceptions, a majority of debt mutual fund schemes clocked returns comparable to the repo rate. Since 2019, RBI has cut interest rates by 250 basis points as the economy was gripped by a…
Investing consists of selecting the right asset mix, timing the market to identify various market opportunities, and access to information about various asset classes & schemes available in the market. An investor is bound by limited exposure to knowledge and unlimited exposure to market sentiments. Many investors struggle to select the right asset allocation to…
Now that the holiday season has set in and you might have taken a break from work, it’s perhaps time to sit back and review your equity mutual fund portfolio and tweak the investment strategy if required. Those amongst you who read our Daily Wealth Letters regularly would know that we, at PersonalFN, do not…
