The lessons Lakshmi Vilas Bank debacle holds for retail investors
Account holders of Lakshmi Vilas Bank appeared worried after RBI imposed moratorium on the bank and restricting withdrawals. The account holders have been assured that their deposits are completely safe, story for its shareholders is opposite. The shareholders are set to lose their investment as the bank will get delisted after the merger and share capital, reserves and surplus will be written-off. This episode of Lakshmi Vilas Bank has few learnings for investors and shareholders.Read more on
Investors look at debt mutual funds differently after Franklin Templeton saga
Debt funds were always considered to be safe and preferred investment option by risk averse investors couple of year ago. Investor’s approach towards debt fund have undergone a change after September 2018 when IL&FS defaulted on its bond payments and the most recent suspension of six debt-oriented schemes in April 2020 by Franklin Templeton. How investors can assess risk and portfolio characteristics before investing in debt funds is what we tried to cover in an article published in The Economic TimesRead more on
Diwali Special: If It Is Wise To Invest In Gold This Dhanteras
Dhanteras is when many like to buy and invest in gold. With gold prices up by 32% in one year and continue to remain in limelight. Gold have the history of rising sharply during crisis and then remain flattish for a long time. Should you go ahead and invest in gold or give it a skipRead more on
Equity MFs log Rs 7,200 crore outflow in September quarter on profit-booking
Mutual Fund industry continue to have outflows during July to September 2020 quarter. The outflow is due to investors continuing to book profits because of sharp recovery in market after March 2020 market crash. Also new investors are holding on in cash as market continues to remain volatile on account of possible second wave of Covid-19 in Europe.Read more on
Mutual Funds: Should you invest in a new fund offer?
Most of the NFOs come during a surging market and it is more about sentiments of the investors during rising markets. Usually, it is better to invest in an existing fund instead of NFO unless it offers a unique opportunity to invest that do not exist in current products.Read more on
Invest in a combination of active and index funds instead of sticking to one
After seeing Active Funds under-performing the Index in last couple of years, the question of how much to invest in passively managed Index Funds and Active Funds is natural. While few stocks in the Index had a phenomenal run in recent years and that helped overall performance of Index Funds. Market correction in March 2020 gave opportunity to Active Funds to add some of these companies in their portfolios. Will Active Funds continue to under-perform the Index or are will the regain the ground?Read more on
Correction in global markets can lead to a fall in India too, second COVID wave a worry
Exclusive discussion with MoneyControl on right proportion of equity and debt in investors’ portfolio, investment options and strategy to build corpus of Rs. 1 Crore in 5 years, current valuations of stock market and are markets due for correction, what is the right time to start with SIPs and major risks related to Domestic and International Stock market.Read more on
IPO market heats up: Three things retail investors must keep in mind
Investors interest in IPO have always increased when stock markets are doing well and that is when most of the companies come up with their IPO. Evaluating valuation, promoters track record and prospects of the sector before investing in IPO can help in taking more informed decision.Read more on
This pharma fund is offering 71% returns in one year; should you invest?
Looking at recent run of Pharma Funds investors should not jump to invest in it by just looking at returns. Pharma and health care sectors have benefited from Covid-19 conditions and this sector is going to play a big role in normalizing the situation around the world. However, investors should not lean too much in any one sector as there is more risk with sectoral funds. If investors still want to invest, then the holding period for such sectoral funds should be more than diversified equity fundsRead more on
Focused funds: When a focused investment play pays off
Focused funds invest in 20-30 companies with lot of conviction. Some of these funds have performed well and consistently over the last few years. Since the portfolio of focused funds is concentrated, they do have more risk; but they also offer portfolios built with strong conviction.Read more on
Investment in Gold: Should you dive-in or wait for further correction?
Gold price started increasing from mid of 2019 and peaked during Covid-19 pandemic. This increase in gold price made investors consider adding gold in their portfolio. However, gold have one peculiarity, it has always done well during global uncertainties and tend to remain flattish for long time thereafter. How much gold should be in your portfolio, how is has behaved across market cycles and what you should expect from your investment in gold.Read more on
Mutual funds withdraw? 17,600 crore from stocks in July-August
Redemption in equity-diversified funds and equity-oriented hybrid funds categories were higher in the July & August 2020 than the inflows as investors booked profits because stock market surged sharply. Also, most of the equity diversified funds during that period were almost fully invested hence they have to pull out from the market to take care of the net outflow,Read more on
Can you benefit from Sebi's new multicap fund norms? Here's what experts say
Multicap funds are preferred by investors because it offered flexibility to fund managers to invest across large, mid and small cap based on the opportunity. The allocation in small cap ranged between 5% - 15% for most of Multicap funds. The new SEBI rule of minimum 25% allocation in small cap companies may make investors switch their investments into other categories like Large & Midcap or Focused Funds.Read more on
5 key strategies for senior citizens when investing for safe, high returns
Senior citizens continue to invest in different instruments even after their retirement to take care of regular expenses. The investment strategy have a significant role to ensure senior citizens remain independent. The strategy covers asset allocation, expected returns on investment, risk associated with different investment, having limited allocation in equities and utilizing tax benefits.Read more on
Will multi asset funds take care of your asset allocation needs?
Asset allocation varies from person to person as per their life stage, needs and risk profile. Multi Asset funds have common portfolio for all kind of investors. Even though the fund is dynamically managed from economy and growth potential perspective. Multi Asset funds cannot be put forward as common solution to all investors. It is better to invest in different asset classes by allocating investment as per one’s profile rather than a common portfolio like multi asset fundRead more on
Debt fund NAVs are falling. What should investors do?
Debt funds are preferred by investors who want to take lesser risk compared to equities. Since debt funds always carry interest rate, a simple rule for investing in debt is; when the benchmark interest rates are around or below 6%, it is better to invest in liquid funds or ultra-short duration debt funds or low duration funds. When the benchmark interest rates are around or above 8%, the time is good to invest in long duration debt funds. Also read about the default and credit risk in debt funds.Read more on
Managing Finances in Sunset Years
Senior citizen can reduce their tax burden by planning their withdrawals in more tax efficient manner. They can use the indexation benefit that is available for certain debt investments. In case of debt funds, the investments should ideally be in medium duration funds as the interest rate risk increases in long duration funds.Read more on
Why we need to talk about wealth creation
Financial Independence is beyond saving money and creating wealth. It assures peace of mind and confidence, it let you focus on other relevant things instead of worrying about your finance. Finance is considered extremely personal and complex. One way to simplify it is by having right conversations on it. Hence, the first step towards financial independence is to discuss and share knowledge on savings and investing among your close.Read more on
Why some investors may give Sovereign Gold Bond Scheme a miss
If anyone has less than 5% allocation to gold and would like to add more, some additions through sovereign gold bonds could be a good option. However, if gold is almost 10% of the portfolio then one should not rush right now to add as gold price have shot up sharplyRead more on
Should you increase allocation to gold after the recent rally?
When the gold prices were increasing, the key is to maintain the allocation. Often when the gold price start rising investors try to invest at that time thinking the returns on gold will continue to be higher. Similar scenario happened in 2008-2009 when gold prices increased because of global uncertainty. Investors who prefer investing in gold should look at 10% of allocation in gold and should avoid adding more at high prices as having higher allocation more than planned in gold can prove counterproductive.Read more on
Gold tops? 50,000 level; know how much you should invest in the precious metal
Key of investing in gold is to maintain 10-15% allocation depending on investor. Gold has the tendency to remain range-bound for a long time and the long term returns from gold have been marginally higher than inflation. We do not suggest investors to invest in gold by merely looking at the short-term returns, having gold beyond the suggested allocation do not help.Read more on
Why did your multi asset funds fail to benefit from upside in gold?
Multi asset funds are more like hybrid or balanced funds. Unlike hybrid or balanced funds, multi asset funds also invest in gold. The fund may have allocation towards gold and fund managers will decide the weightage in gold as per their views on the prospects of gold. If investing in gold is the objective then it is better to invest in gold funds instead of multi asset funds,Read more on
Top 10 Mid-Cap Mutual Funds 2020: MF schemes for high returns in the long term
Investing in midcap companies give opportunity to investors to earn higher returns but also have additional risk compared to the large blue-chip companies. An allocation in midcap companies either through midcap funds or multi-cap funds depending on the risk profile of the investor helps them to invest in midcap. Since midcap companies are companies with potential to grow faster in future the investment horizon in midcap should be higher. Read more on this story with our views on midcap fundsRead more on
Planning to invest in stock markets? Find out the correct way
Investing in stock market are predominantly through direct equities or mutual fund. Mutual Funds should be investors preferred way of investing because the fund manager and the research teams of asset management companies are working full-time on the portfolio. Investors get to invest in basket of companies with smaller investment. And when you invest in stock market, it is important to have patience as businesses may go through market cycles.Read more on
Your Money: Have you created a contingency fund?
Contingency fund is the sacred money that one keeps aside in a bank savings account or liquid fund to take care of monthly expenses in case of any emergency or need. Mostly six months of household expenses is what one should maintain. The significance of contingency fund is evident from the impact of Covid-19 crisis not just on the health but also on the wealth of people, particularly those who faced job cuts or salary cuts. Contingency fund should be looked as the necessity along with food, shelter and clothing.Read more on
Knocked down by lockdown? Here is how you can sail through
The impact of lockdown during to Covid-19 affected everyone be it salaried or businessmen. It also came with its own challenges and while we all wish that the impact to be as minimal as possible, the scenario may not be the same for everyone. While knowing the extent of the impact is not easy, one of the best ways is to look forward and be more prepared to take care of ourselves and our family in future. We cover few aspects that can help you be better prepared and sail through these challenging times.Read more on
Can you always make money by investing in a falling market?
Every fall in equity market can be an opportunity for investors. Historically, investing during market correction has led to wealth creation over years. The article talks about investing during market correction and highlights the returns generated in case of SIP or one-time investment during crisis. It also shows how gradual investment strategy can work during market correction.Read more on
Let your life goals decide your investment mix, not market movements
SIP is the best way to build corpus for financial goals. Irrespective of market conditions continuing with SIP all the times work better for rupee-cost averaging.Read more on
Your Money: Three tips to manage funds in the time of Covid-19
Crisis like Covid-19 can have massive impact on your personal finance and lead to erosion of wealth quite quickly. Managing savings and investment during these times is crucial. Maintaining emergency funds, sticking to asset allocation and working on withdrawal plan for long term financial objectives can be very helpful.Read more on