The Economic Times
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| 15 August, 2020, 07:17 PM IST | E-Paper
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    Strategies

    There's nothing wrong with gold as an investment, but market dynamics are not a one-way street. While one may have an opinion, the market at large matters far more.

    The pace in new SIP accounts improved marginally to 11 lakh in July from 9.1 lakh in the previous month. But, higher discontinuation reduced the overall monthly growth in the outstanding SIP accounts to 1.2 per cent in July 2020.

    Are dynamic asset allocation funds or balanced advantage funds losing their charm among investors and advisors? Sure, some fund houses may be still marketing them as a one-stop-solution to conservative equity investors, but many advisors and investors have started questioning the rationale behind these schemes lately.

    The fund, which closes on August 21, will have 50 per cent allocation to domestic equities, 20 per cent to international equities, 15 per cent to commodities and 15 per cent to fixed income, with rebalancing happening once every quarter.

    ICICI Credit Risk Fund beats sector blues, logs 10.34% return

    According to its latest factsheet, the scheme holds 81 securities and the average exposure to a security has fallen to 1.2%.

    The focused funds, which take concentrated bets on few stocks, continued to attract investors' attention despite the four-year low equity inflows in July.

    The monthly data released by the Association of Mutual Funds in India or Amfi, a mutual fund industry standards organisation in India, reveals that investors were selling their equity mutual funds and hybrid funds and holding back their investments in July.

    Some investors prefer to stay in cash after sharp rebound in stock market, but SIP folios see 400,000 additions

    Mutual fund investors are selling their investments in equity mutual funds and they are not in a hurry to invest in equities anymore, shows Amfi data.

    Mirae Asset Hybrid Equity Fund completes 5 years, tops return charts

    "Mirae Asset Hybrid Equity Fund has an envious track record in five years of its existence. The scheme has offered good five- year rolling returns and good downside protection. That means it has given decent risk-adjusted returns over the years."

    Benchmark indices saw their worst decline in March 2020, falling by more than 20%, on the heels of COVID-19 being declared as a pandemic by the World Health Organisation (WHO). However, even the most optimistic investors haven’t expected such a remarkable turnaround, so early.

    The six-member monetary policy committee (MPC), headed by RBI governor Shakikanta Das, kept repo rate untouched at 4 per cent; and reverse repo rate at 3.35 per cent.

    The Reserve Bank of India held its policy rate in its monetary policy review held today in line with market expectations.

    The fund aims to build a focused portfolio of 30 companies chosen from the top 150 companies using a multi-factor approach.The NFO is open and closes on August 10.

    You still think gold funds are topping the returns charts?

    Many mutual fund investors cannot stop talking about the 40% returns offered by gold funds in the last one year. They have been asking around about the prospects of gold funds and are all ready to invest in the yellow metal to tide over these uncertain times.

    The monetary policy review by the Reserve Bank of India is scheduled for tomorrow. Most debt mutual fund managers believe that it is going to be a close call in the August MPC meet.

    ​​​​Das has already led the Monetary Policy Committee in cutting interest rates by 115 basis points this year, taking the repurchase rate down to 4%, the lowest since it was introduced in 2000.

    Some taxpayers are questioning the wisdom behind investing in ELSS mutual funds to save taxes under Section 80C in this financial year.

    The monetary policy committee (the MPC) will meet in the first week of August 2020 to deliberate and are likely to have their task cut out with the economy staring at a contraction and the need to manage inflation.

    RBI likely to leave repo rate unchanged in August policy meet: SBI Report

    "We believe an August rate cut is unlikely. We believe that the MPC could now well debate what further unconventional policy measures could be resorted to in the current circumstances to ensure financial stability is continued to be addressed," an SBI research report- Ecowrap said.

    The Economic Times