Equity saving schemes are sold as `one of the safest’ investment products. A typical sales pitch goes like this: “look at the portfolio. It is debt, arbitrage, and a little bit of equity.
The international fund category is offering around 15% returns in the last one year. Suddenly, many mutual fund investors are thinking of diversifying and include at least one international fund in their mutual fund portfolio.
The investment demand for gold rose, with inflows reported by gold ETFs and folios. The AUM of gold ETFs surged to Rs 5,678 crore in December 2019 from Rs 4,571 crore in December 2018.
According to AMFI data, the ELSS mutual fund category has seen net inflows worth Rs 931 crore in January 2020.
If you are convinced about the efficacy of these `diversifiers,' you may consider allocating a small part of your portfolio to them, only if you have a sizeable portfolio.
Several funds have given healthy returns over the past year and are worth considering by investors.
Equity savings funds and dynamic equity schemes are less volatile than regular diversified equity funds.
Defying predictions of their imminent irrelevance, some actively-managed large cap schemes have bounced back to the top of the return chart.
High differential in spreads between rated bonds & repo makes funds suitable for investors with moderate risk appetite.
All the 21 funds in the category were positive, and the lowest return offered by the category was 23 per cent in 2014.
The toppers in the category have offered around 23 per cent returns in both three months and one-year horizon.
Long duration funds and gilt funds have made a comeback in the last six months.
Debt mutual fund managers are recommending dynamic bond funds these days.
Many toppers in various mutual fund categories were offering negative returns in the last year.
In fact, some gilt schemes are offering more than 10 per cent in the last year.
UTI Equity Fund came second, delivering 4.8 per cent return for the year.
Investors in midcap equity mutual fund schemes were disappointed in 2018.
Around 80 per cent equity mutual fund schemes failed to beat their respective benchmarks in the last year.
Multicap mutual fund schemes, like other equity mutual fund categories, had a tough year in 2018.
Largecap mutual fund schemes proved to be the only safe option in the volatile market in 2018.
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