In its latest circular, SEBI has announced the extension of deadline for implementation of Risk Management Framework as well as two-tier structure for benchmarking of mutual fund schemes by three months. Both these norms will now be implemented from April 01, 2022. SEBI has extended the timeline for implementation based on the request received from the Association of Mutual Funds in…
Mid-caps stocks are known for their volatile nature, which concerns many investors. That said, midcap stocks hold the potential to offer eye-catching returns when the tailwinds favour these smaller companies. If you invest in a mid-cap Exchange-Traded Fund, you could gain from a diversified portfolio of mid-cap stocks and don’t need to churn your portfolio…
Against the backdrop of the uncertainty produced by the virulent Omicron variant for the global economy and the equity markets, certain mutual fund distributors are influencing investors to the Aggressive Hybrid Funds and/or Balanced Hybrid Funds, propagating that they would offer the required tactical allocation. However, let me tell you that may not necessarily be…
In 2018, SEBI had introduced categorization norms for mutual funds to prevent duplication of schemes and to ensure that schemes remain true to its investment mandate. This rule aimed to help investors make informed decisions, thereby making the mutual fund selection process easier for them. However, the pace at which mutual fund houses are launching…
SEBI’s circular on Potential Risk Class (PRC) Matrix for debt mutual funds came into effect from December 01, 2021. The PRC matrix will apply to all existing debt schemes as well as all upcoming launches. The existing Risk-o-Meter is based on the portfolio of the scheme and captures the actual risk in the portfolio taken by…
Many investors often go through a dilemma before investing, regarding which asset class to choose for optimal returns. Too many variables in the market make investing complicated, so confused investor behaviour leads to emotional decisions & sub optimal returns. Many investors fall prey to the greed during market highs, whereas panic when market crashes and…
The equity market has turned volatile once again amid profit booking following a sharp rally in the last few months. With the ongoing concerns about the new COVID-19 variant it is difficult to predict the direction of the market from here on. Meanwhile, the RBI kept interest rate unchanged, to support the economic growth as certain activities…
India is taking strides to adopt and implement new technologies that can lead several industries and the government to undergo a technological revolution. The banking and financial services sector has seen a swift penetration of digitization since the 2016 demonetisation. The recent uncertainties amid the COVID-19 pandemic have led to a huge shift to digital…
SEBI had recently prescribed a dual benchmarking structure for mutual funds to bring uniformity in benchmark of schemes within a particular category. As per SEBI’s circular, the first-tier benchmark will reflect the category of the scheme viz. Large-cap, Mid-cap, Multi-cap, etc., while the second-tier benchmark will demonstrate the investment style/strategy of the fund manager within the category for instance, growth,…
Even before the Government of India imposed lockdowns in March 2020, I wrote to you why it made sense to invest in gold during times of the COVID-19 pandemic. At that time, gold was trading at around Rs 42,200 per 10 gram and went all the way up to make a high of Rs 55,000 in…
