In the last few months, mutual funds have been scrambling to cut exposure to companies with high debt. For instance, ICICI Prudential also cut its scheme's holdings in JSPL's debt pa per.
Mutual funds have been scrambling to cut exposure to companies with high debt. For instance, ICICI Prudential also cut its scheme’s holdings in JSPL’s debt paper.
A SIP (systematic investment plan) is a specific amount, invested for a continuous period at regular intervals, generally on a monthly basis.
For investors living on interest income from deposits, advisors say the government savings bonds, with a tenure of six years for small investors, make sense.
Fund managers said factors such as good monsoon, better liquidity and easing food inflation have also helped investor confidence.
In a traditional STP, a pre-fixed amount is transferred from one scheme (called source scheme) to another scheme (called destination scheme) on a pre-determined day.
Book profits in small- and mid-cap stocks where the rise is speculative, there is no visibility of earnings in the next couple of quarters. Go for large caps over midcaps.
For investments up to 2 PM on a particular transaction day (subject to funds available for uti lisation by 2 PM), the units are allotted on previous day's NAV.
Financial planners believe a combination of debt mutual funds and NCDs (non-convertible debentures) could help investors in fighting lower deposit rates.
Looking at this trend, distributors believe other prominent companies too are likely to reduce rates in the coming month.
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