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Many mutual fund investors are not happy with the performance of their schemes. Some of them can’t figure out why the scheme is still not offering positive returns even though the markets seem to have recovered substantially from the lows in March.

Why did Santosh Kamat, MD and CIO, India fixed income, Franklin Templeton Mutual Fund, invest in long-term papers when some of funds are meant for very short-term horizon of a few months to a year? Why did he lend large sums to a few companies?

Home-bound investors are lapping up battered shares of mid- and small-cap shares.

HDFC Mutual Fund plans to rollover HDFC Equity Opportunities Fund – Series 2, a close-ended fund launched in May 2017 with a tenure of 1126 days, by another 18 months.

Debt fund fiasco starts hurting Franklin Templeton MF; AAUM falls sharply in April-June quarter

Apart from debt schemes, Investors also seem to be pulling money out even from the equity schemes managed by the fund house. Equity AAUM also suffers because of market movements.

"With markets around the world in so much turmoil, it looks like a good opportunity to get into foreign markets."Investing in foreign markets, especially the USA, has become extremely popular lately.

Data in the derivatives segment also reflect confidence in the market.

Despite the investing maturity acquired after the 2008 global financial crisis, retail investors across the country have reacted in a kneejerk manner to the Covid-induced financial volatility. Answer these five questions to decide if you need a financial planner.

The Portfolio Doctor assesses the health of the fund portfolio, examines the schemes and their suitability with regard to the goals and, if required, recommends corrective measures.

Why are most mutual fund investors `aggressive’ these days?

Every mutual fund investor, especially the new one, is an aggressive investor these days. You ask them about their risk profile, and you might get responses like these:“I am okay with high risk. I am young.”

Riding on the back of a depreciating rupee, Indian prices calculated with GST hit a record high of Rs 50,000 per 10 grams.

Now, all the three rating agencies — CARE, Crisil and India Ratings — have a C rating on Jharkhand Road Projects. As a result, as per external valuation agencies’ matrix, the paper will now get valued at 65% instead of the earlier 50% valuation.

The BSE 500 index has gone up by 40.3 per cent, from 2020 low of Rs 7,864.01.

Many new investors are eager to create wealth over a long period. They choose the best equity mutual fund for the purpose. Since they know a little about the advantage of diversifying, they also try to invest in multiple schemes.

‘Hybrid mutual funds still have a place in the portfolio’

In very simple terms, the fund should provide a fine balance between risk and return. Lower risk than an equity fund and higher return than a debt fund. That makes balanced funds a great product for slightly conservative investors.

The move by the Securities and Exchange Board of India to hold at least 20% of liquid funds’ corpus in liquid assets like cash and government securities from July 1 could squeeze returns further.

The year 2020 is teaching us one significant lesson. That is, be more responsible and caring human beings as we are all stakeholders of planet earth and the universe.

Andhra Paper reported earnings per share of Rs 53 for the year ended March 2020

Bank saving deposit rates are coming down and this definitely gives debt mutual funds an edge over the savings bank account in terms of post-tax returns. However, the comparison is not that easy.

Upbeat about equity mutual funds? Look at these numbers

Many equity mutual fund investors are suddenly feeling positive. The double-digit returns offered by most equity mutual fund categories in three- and one-month periods seem to have reassured many investors, say mutual fund advisors.

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