Arbitrage funds generate returns close to the returns generated by short term debt funds. These schemes offer investors the best of both worlds: the safety of principal and the tax advantage available to equity funds.
There are a variety of debt mutual fund options, each suited for the needs of different investors. You can use debt funds to save for your child’s annual education expenses. Or save up enough to pay the down payment of your house next year.
Due to the slowdown in various sectors, debt funds are struggling with issuers who fail to fulfill their obligations. Many fund houses were forced to mark down the value of stressed assets, which hit NAVs badly.
Sebi has classified certain categories of debt funds based on their portfolio duration and therefore, it is imperative to understand its relevance. Duration measures the sensitivity of the price of a bond to changes in interest rates.
Coronavirus or COVID-19 has spooked not just the Indian stock market but global stock markets as well. ET wealth studies the impact of the pandemic virus.
Coronavirus fears shaved off 2,919 points fom the Sensex on 12 March, the steepest single-day fall in market history. ET Wealth looks at some biggest crashes in the past two decades and market reaction to few other viral outbreaks.
A general understanding or approximation about the future movement of an economic variable can help investors to rebalance and optimise their investment portfolio. Also, choosing the correct version of the trend is critical for improving reliability.
The current economic environment is not conducive for equity markets and a broad-based equity recovery will only happen when the economy revives. Hence, it is advisable to look at risk-adjusted metrics to evaluate, identify good quality equity funds.
Find such companies by analysing their reported financial numbers relative to the analysts’ expectations. Those that report numbers higher than the expectations or those with positive earnings surprises can prove effective in supplementing the investment portfolio.
A positive auto-correlation indicates that if a stock has generated positive returns in the past, such returns will have a positive impact on future returns depending on the magnitude of auto-correlation.
- No blogs yet have been written by the author, we’re sure the author will contribute one soon