Category: Personal Finance

Mutual Fund Tracker: September 2020

Equity MF saw a net outflow in the month of September (Rs.734 cr), for the third consecutive month, as investors preferred to continue booking profit in view of declining household cash-flows in prevailing uncertain economic environment. The sharp V-shaped recovery during last few months and change in the definition of multi-cap funds by SEBI are

Mutual Fund Tracker: July 2020

Our monthly MF tracker captures the sectoral trends for the MF industry with focus on shift in any overweight/underweight position. It also looks into the top buys & sells during the previous month along with the cash holding positions. MFs have increased exposure to IT, Oil & gas and Healthcare sectors while reduced exposure to

Inter-Scheme Transfers by MFs: Are you a Sitting Duck?

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.

Franklin Templeton Debt Fiasco

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

Removal of Dividend Distribution Tax: How will you get impacted??

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 FY21: Fails to meet high expectations

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.

Union Budget 2020: What to expect

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

Primer on NPS

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

Are you still doing Rearview mirror Investing?

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