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?
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.
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.”
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.
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.
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.
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.