The underweight and overweight positions of a fund as compared to its benchmark helps to understand the view of the on the sector and his expectations.
Stocks like Balkrishna Industries, KPIT Tech and Sintex entered MF portfolios, while Ajanta Pharma, Balaji Telefi lms, Amara Raja Batteries saw profit booking.
In a balanced fund, the debt component in the portfolio provides a cushion against volatility, while the equity component allows the portfolio to grow.
Grasim Industries and Aditya Birla Nuvo fell on the news that they would be realigned to create a merged entity with a market capitalisation of more than Rs 70k crore.
Gilt funds with longer maturity, carry higher interest rate while it is negligible or very low in liquid funds, which invest in securities of up to 91 days maturity.
With interest rates on deposits moving down, investors are keen to lock into instruments with higher interest rates and a longer maturity.
The minimum investment amount in these bonds is just 1 bond or Rs 3,000-3,200, enabling larger number of investor sto participate.
As the refund money comes back, wealth managers suggest investors could look at issuances of NCDs from earlier series listed and traded in the secondary markets.
Wealth managers believe many informed investors have subscribed to this issue to make a quick buck by selling on the listing day.
Liquid funds, income funds, gilt funds, capital protection schemes are classified as debt-oriented schemes for taxation.
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