The Economic Times
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| 28 November, 2020, 09:28 PM IST | E-Paper
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    Strategies

    Mutual fund investors, especially equity investors, get very nervous every time the market touches or hovers around a historical peak. These numbers are psychologically-significant for many of them.

    However, when big money is chasing returns and the market mood is rather optimistic, capital tends to favour equities, said experts.

    In the three-year and five-year time-frames, in the multi-cap category, the SIP returns of Parag Parikh Long-term Equity Fund have been considerably higher than the category average.

    Winners held high cash levels when valuations outpaced conviction and moved in when prices fell; Pharma, consumption and IT paid rich returns for some

    Lot of innovation pending in equity market​, says Navneet Munot

    ​“We need to leverage technology a lot more," Navneet Munot said.

    Calendar 2019 witnessed total inflows of Rs 1,01,122 crore while Calendar 2018 saw FPI outflows of Rs 33,014 crore. Net inflows for last two years stood at Rs 68,108 crore. This month, FPIs have already infused Rs 48,278 crore so far.

    After offering negative returns in the one-year time frame, banking sector funds are are offering eye-popping 26% returns in three months on the back of signs of economic recovery and expectations of stronger growth.

    S&P BSE Sensex was at 43,917 points on Monday morning (or November 23), a gain of around 69% in eight months. In the last few days, especially since the success of vaccination results were out, the key index seems to be ready to soar high. What does it mean to mutual fund investors?

    “As the unlock began, corporate investors got confident of cash flow requirements and this has led to a shift from liquid to other debt categories in line with their liquidity needs and risk appetite,” says Raghav Iyengar, chief business officer, Axis Mutual Fund.

    ICICI Prudential's Rahul Goswami explains how bond investors can get good returns in current scenario

    "RBI may continue its stance of “Whatever it takes” until the economy recovers, hence, reversal of stance is unlikely to take place in the near term." Therefore, what bond investors should do in an environment of rising inflation and low-interest rate?

    The thematic mutual funds have attracted the highest inflows more than any other equity fund category in October. This category of mutual fund has been garnering steady inflows. Does it make sense to invest in these mutual fund schemes?

    There are 69 ETFs available to invest. Since January, fund houses have filed drafts for 10 ETFs across categories with Sebi. Apart from the large cap category, we now have ETFs in several other categories as well.

    Many investment experts were asking investors to invest in gold during Diwali. Did you hear anything? You might be wondering why these investors are still bullish on the yellow metal that has given very high returns since the pandemic tightened its grip across the globe.

    As recently as Oct. 20, markets were pricing rate cuts of up to 25 basis points from leading central banks by next autumn as the resurgent pandemic threatened a double-dip recession.

    HDFC Mutual Fund cuts stakes in 26 Nifty stocks in October

    The country’s second-largest money manager reduced exposure to a couple of outperformers over the past eight months, including in Reliance Industries, whose share price has rallied 120 per cent since March lows.

    Investors of existing schemes that choose to remain in the multi cap category now face a dilemma—whether to continue with the fund or shift to another fund with a flexi mandate. Experts suggest investors to shift if not comfortable with the new avatar of multi cap funds.

    Not many investors know if they have invested in the right mutual funds. The mutual fund portfolio doctor examines the schemes in the investment portfolio and recommends corrective measures, as required.

    The recent Sebi decision to introduce flexi cap mutual fund category has come at the right time for many multi cap investors who were bracing for some unpleasant changes in their favourite schemes. Here are three prominent multi cap schemes that would become flexi cap schemes.

    In an interview with ETNOW, Jain said nobody could have forecast Covid-19. “While the impact of lockdown will pass, lower interest rates are here to stay,” Jain said.

    Corporate bond funds are back in vogue. Here's why

    The composition of corporate bonds in the mutual fund schemes is changing in favour of less riskier papers.

    The Economic Times