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.
Many mutual fund investors are not happy with the performance of their schemes. Some of them can’t figure out why the scheme is still not offering positive returns even though the markets seem to have recovered substantially from the lows in March.
Why did Santosh Kamat, MD and CIO, India fixed income, Franklin Templeton Mutual Fund, invest in long-term papers when some of funds are meant for very short-term horizon of a few months to a year? Why did he lend large sums to a few companies?
It is only during crises like the current one that our faith in ourselves is shaken, making us wonder if we could do with outside help. If you too have been thinking about the need to hire a planner to guide you through the ongoing crisis and beyond, ask yourself these five questions.
Every mutual fund investor, especially the new one, is an aggressive investor these days. You ask them about their risk profile, and you might get responses like these:“I am okay with high risk. I am young.”
Now, all the three rating agencies — CARE, Crisil and India Ratings — have a C rating on Jharkhand Road Projects. As a result, as per external valuation agencies’ matrix, the paper will now get valued at 65% instead of the earlier 50% valuation.
Many new investors are eager to create wealth over a long period. They choose the best equity mutual fund for the purpose. Since they know a little about the advantage of diversifying, they also try to invest in multiple schemes.
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.