In this article, we will examine the inter-scheme transfers done by most of the MF houses that have seen huge redemption pressure on their Credit Risk Funds. We will also give our view whether this warrant any review of your existing investment into these hybrid schemes.
This moratorium is like a double whammy for the financiers as it increases the overdue amount and depletes the asset value. This along with falling income generating opportunity of borrowers could be a perfect combination for loan default
We have been flagging the risk involved in chasing the YTM without properly understanding the credit risk, interest rate risk, and liquidity risk associated with the papers owned by that particular fund, and today we stand vindicated. What really went wrong with the Pick of the Pack, where YTM obsessed investors always used to jump
FM removed Dividend Distribution Tax (DDT) in the Union Budget 2020-21 and made dividends taxable in hands of the investors. We believe this is likely to shift the investors' money from dividend option to the growth options. Further, inclusion of TDS on dividend payout above Rs.5000/pa would also help in this kind of shift.
Union Budget 2020-21 was announced in the backdrop of a tough economic environment, with high expectations to revive the economy by stimulating investment and boosting consumption. However, it fell short of prevailing high expectations, as the government continued to prefer fiscal consolidation and held growth recovery at bay.
The year 2020 starts with a stumbling economy as GDP growth forecasts nosedive to record lows and the retail inflation is at a 5-year high of 7.35%. The ambition of the Modi government to reach 5 trillion economy by 2020 seems impractical at this current rate. Several changes will be needed in the space of
The population of people more than 65 years old in India is growing at the fastest rate at the moment. Yet, according to a survey done by RBI, only 23% were saving or planning to save for their retirement. 7 out of 10 Indians expect their children to support them in their retirement. These alarming
You must have heard the ubiquitous disclosures by the MFs, "Past performance is not a guarantee of future results”. This standard footnote warns that extrapolating past trends could lead to a sizeable gap between expected and realized returns. However, we rarely follow this advice in practice. Often we have seen investors buying MF or any other
FM's decisive step to pump-prime the economy brought cheers to the market. Corporate head honchos contemplate this move as a strong signal that the incumbent government is prepared to take bold steps to revive the economy. This stimulus will help kick-start the next big virtuous economic cycle by reviving the Capex and market sentiments.
In the current market scenario, staggered investments through SIP or STP along with some tactical lump-sum exposure to good funds from beaten-down mid-cap and small-cap categories might remain the best way to invest in equity as an asset class. So, it is always beneficial to stick to your investment strategy rather than chasing quick returns