The Economic Times
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| 25 January, 2021, 11:52 AM IST | E-Paper

    Category Review

    PSU equity mutual funds, that invest primarily in public sector undertakings, have turned around to give astounding returns in three months.

    Gold prices in India fell amid weak global cues today to a one-month low. Falling for three consecutive days, gold futures on MCX fell 0.14% to over one month low of Rs 48,636 per 10 gram.

    Amid the continuous outflows from equity mutual funds, one category that has been receiving huge inflows is the dividend yield funds category.

    Growth has been on a downward trajectory for the last 4-5 years and Covid -19 accelerated it.

    200% jump in AUM in one year. Is it time to look at Overseas FoFs?

    In the last one year the folio base of overseas fund of funds (FoFs) has increased from 1,43,706 to 4,64,020 as on 30th November, 2020.

    Axis Mutual Fund believes that small and mid cap space is an opportunity for investors in this New Year.

    Gold- an asset that never goes out of fashion. This year, in 2020, Gold was one of the most sought after asset classes due to the uncertainty in the global markets.

    Tight credit spreads making it difficult for asset managers to deploy money. The reverse repo rate, at which commercial banks park their excess cash with the central bank, is currently at 3.35%.

    After offering negative returns in the one-year time frame, banking sector funds are are offering eye-popping 26% returns in three months on the back of signs of economic recovery and expectations of stronger growth.

    Gold mutual funds post negative 3-month returns. Is the rally over?

    Is gold losing steam? Many gold mutual fund investors, both existing and prospective ones, are asking this question after gold funds posted negative returns in the three-month period. Gold funds are offering -3.25% returns in three months, -0.42% in one month and -2.22% in one week.

    Conservative investors, who traditionally stick to bank deposits to take care of their income needs, have been complaining about lower deposit rates for a while now. However, these investors, mostly retired folks, have overlooked a relatively safer mutual fund category that has given impressive returns.

    The top three performers in the small cap category have offered around 35-50% returns in the last one year. Around nine small cap funds have offered double-digit returns in the last one year. After being in the negative territory from March to September, the small cap category seems to be ready to take off.

    Multi Asset funds or asset allocation funds are a relatively new category in the Indian mutual fund space.

    MNC Funds or mutual fund schemes that invest mostly in multinational companies are gaining currency these days. MNCs are always bankable, especially in the current bleak economic scenario due to the pandemic.

    ‘Hybrid mutual funds still have a place in the portfolio’

    In very simple terms, the fund should provide a fine balance between risk and return. Lower risk than an equity fund and higher return than a debt fund. That makes balanced funds a great product for slightly conservative investors.

    Banking sector funds have surprised investors in the last one month. The category has offered 21.38% returns in one month. It is indeed surprising because the banking sector has suffered a lot in the last one year.

    The pharma sector is benefiting a lot from the Covid-19 global pandemic. After being out in the cold for the last three years, phama funds are back with a a bang.

    Gold surprised market participants in March by moving in tandem with equities, when it was expected to do the opposite. When there is a sharp fall in asset markets, you can only sell what is liquid, profitable and has low impact cost.

    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.

    Equity saving schemes fell 11% in one month. Time for conservative investors to rethink?

    ​Equity saving schemes are sold as `one of the safest’ investment products. A typical sales pitch goes like this: “look at the portfolio. It is debt, arbitrage, and a little bit of equity.

    The Economic Times