Analysts said the outlook for equities remain uncertain at least in the next one year. A mix of equity and debt could help reduce sharp swings in returns.
For those in the high tax bracket, if they hold these funds for more than three years, these products will also get indexation benefits, which will significantly improve the post-tax returns.
Investors looking for higher returns post the sharp cut of interest rates in small savings products and bank deposits by up to 140 basis points could turn to banking and PSU debt funds.
SBI Mutual is the first fund house to have discontinued purchase in SBI Gold Fund, which has assets of ₹434 crore. As of now, investors can continue to buy gold funds from other fund houses that offer the product.
THE BSE250 Smallcap Index is down 40 per cent since February 7.
While the Nifty falling 28% in the past one month, many schemes fell even sharper. But, there are a few schemes that have taken a relatively moderate hit compared to others.
Here are five schemes that have fallen lesser than the Nifty in the turmoil.
Amfi has urged the central bank to reinstate the liquidity window to mutual funds to help them tide over the current liquidity crisis.
Stock valuations of players in the sector have turned cheaper after the last few years of underperformance, resulting in a drop in valuations of the sectoral index.
An emergency corpus is critical in uncertain times like this even if it means individuals have to move from equity to debt for the moment. Once an emergency corpus is in place, investors could restart their equity SIPs.
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