One equity scheme suitable in the current scenario is Axis Bluechip Fund. The scheme is managed by Shreyas Devalkar, whose top two sectoral bets are banking and financials.
Analysts have reduced earnings estimates of majority of construction companies by 15-40 per cent based on the cash and balance sheet strength of these companies.
In times when estimates and assumptions are being questioned or proven wrong consistently due to unforeseen factors, it makes sense to stick with equity schemes that have been through long market cycles. Schemes which have been in existence for more than 15 years is a good criterion.
There are a few reasons why investments in index ETFs make sense now for such investors.
Investors bullish on India’s consumption story are shifting away from discretionary spending companies.
At the end of the December 2019 quarter, the company had total cash of Rs 20,068 crore and debt of Rs 21,555 crore.
ICICI Prudential Balanced Advantage has given returns of 7.2%, 11.5% and 11.4% in the past five-year, seven-year and 10-year periods, while its peers have given an average return of 5.8%, 10.2% and 8.9% respectively over the same periods.
ET has learnt from interactions with big producers and trade analysts that the losses because of postponing of release of the films or shooting of under-production films could be in the range of Rs 200-250 crore for the next two-three months.
Over these time periods, focused schemes have given average returns of 8.6%, 7.7%, 6.2% and 10.5%, respectively. By contrast, large cap schemes have delivered 4.9%, 6.9%, 5.4% and 9.6%.
The five-year-old fund has beaten its benchmark S&P BSE 150 Midcap TRI over 1-, 3- and 5-year periods. Although it is the topper in one-year return, it lags peers in 3- and 5-year return.
- No blogs yet have been written by the author, we’re sure the author will contribute one soon