Various asset classes move in different directions over a period of time. As a result, asset allocation of an individual changes over time.
TCS is still behind Infosys, where funds collectively own stocks worth Rs 26,144 crore.
Now, if a fund pays Rs 100 as dividend, Rs 10 will go to the government as tax and Rs 90 will be paid to investor. Earlier, there was no tax on such dividends.
Investors could be confused about their holdings, as names of many mutual fund schemes change and portfolios realign with regulatory requirements.
In March 2016, HDFC Bank was the biggest holding in 37 schemes.
A volatile month gave fund managers a chance to cherry-pick stocks.
For instance, a 20-month deposit done through its website pays 8.05% interest while an 18-month deposit done in the physical mode by writing a cheque fetches an interest of 7.75%.
With the outlook for Indian stocks expected to remain uncertain in 2018, wealth managers said it would be prudent to look at products that offer some safety compared to plain vanilla equity products.
With general elections being just a year away, wealth managers expect stock markets to be highly volatile.
Fund houses have started re-categorisation of their existing MF schemes.
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