The Economic Times
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| 15 July, 2020, 02:08 AM IST | E-Paper


    Large cap mutual fund category has seen net outflows in June. Are investors doubting the dependability of the category that is supposed to do well in uncertain times?

    ‘A theme of consolidation has played out every time there has been a crisis.’

    Parag Parikh Long Term Equity Fund is one of the most talked about equity schemes these days. The scheme has been topping the chart in one-, three- and five-year horizons.

    ‘There is a lot of similarity in low quality stocks between 2000, 2008 and 2020’

    Value funds have the ability to outperform, says Daylynn Pinto, fund manager, IDFC Sterling Value Fund

    A look at some of the value schemes in the last one to three months indicate that the category may be on its way back to form. Shvani Bazaz of spoke to Daylynn Pinto, Senior Fund Manager-Equity, IDFC Asset Management Company, to find out the prospects of value category.

    ‘The US 10-year treasury has halved compared to where it was 6-8 months ago’

    Since our inception in 2009, the core philosophy of the investment process has been a steadfast adherence to quality. We at Axis, have always remained true to our investment strategy, says Jinesh Gopani.

    “If you have the bandwidth to continue your investments, then do not stop them or redeem in a market correction,” Balasubramanian advises.

    ‘We have a very strong presence in the formulation market’

    Markets may remain volatile in near term, Nimesh Shah of ICICI Pru MF

    "No one knows how long the pandemic related situation will continue and hence the fallout from this and the magnitude of economic impact remains hazy."

    Nippon India Nivesh Laksya Fund has caught the imagination of many individual investors. Many of them want to know the details of this long-term gilt fund. Most mutual fund advisors ask their clients to stay way from long-term debt funds, as these schemes are extremely sensitive to interest rate changes and one has to time the entry and exit in them to maximise returns.

    ‘There is a lot of improvement on the ground that we are noticing’

    "​​Markets always tend to look ahead. Some of the macro numbers like auto sales, cement, electricity and diesel consumption, are sequentially looking better. Lockdown is getting lifted, business are opening up."

    With returns in overnight and liquid funds falling amidst steep rate cuts from the RBI, arbitrage funds have been slowly gaining popularity., says Radhika Gupta, CEO, Edelweiss AMC.

    Over past 5 years, value investing has become less relevant, says Ajit Dayal

    The Demonetisation of 2016, the GST of 2017, the collapse of IL&FS of 2018 and the continued support by the political class of the real estate sector has led to a sharp slowdown in the Indian economy and a near-freeze of the banking system for over 2 years.

    Economic recovery is unlikely to be quick. Investors should be clear about their capacity to save and what their goals are before they jump into the market, says I.V. Subramaniam, MD & CIO, Quantum Advisors, Director, Quantum AMC, tells ET Wealth.

    PGIM India Short Maturity Fund is offering eye-popping 17% returns in the last one year. The returns are more than double the average returns offered by the short duration category. The scheme is ahead of its peers by a wide margin.

    Many individual investors have developed a fascination for international funds during the current pandemic. Mutual fund houses and advisors are also actively promoting these schemes.

    Pharma funds are in enjoying their spot under the spotlight after a lull period in the last three to four years. These sector schemes have offered an average return of over 25% in the last year.

    Leverage will become lethal in the days to come: Nilesh Shah of Kotak AMC

    ‘Market is hoping that economic activity will soon rebound’

    The Economic Times