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.
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.
"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.
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 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.
"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.