One significant global phenomenon at this point of time is that the US is exiting from the ultra-easy monetary policy initiated in the wake of the global financial crisis of 2008.
Much to the surprise of the analysts, the RBI chose to raise the H2 FY2018 Consumer Price Index (CPI) path slightly by 10 bps to 4.3%-4.7%, to accommodate upside risks from crude prices, delayed impact of state Housing Rent Allowance (HRA) implementation and a sustained uptick in core inflation.
Looking at the average credit rating exposure of the industry, we observe that the exposure to ‘A and below’ rated securities saw a steady increase up till the end of 2015, when the Amtek Auto incident occurred.
Bank FDs are one of the safest investment-cum-savings avenue which can help you get 7-9% return annually.
The SWP enables investors to withdraw a specified amount regularly, thus addressing two shortcomings of the dividend option viz., quantum and timing.
All mutual fund schemes within a fund house will need to be appropriately distinct from each other in terms of strategy, asset allocation, etc.
Watch fund managers discuss about investing in mutual funds at the 4th Mint Mutual Fund Conclave.
A mutual fund can offer a simple and efficient way to invest for your life goals
The returns you actually earn from the debt scheme may or may not be similar to the Portfolio YTM
For regular returns, investors opt for fixed deposit, company deposit or small saving schemes. These suffer from disadvantages when it comes to taxation, falling interest rates & liquidity in case of some emergency.
Your SIP investment must go up as your income rises.
With low foreign ownership of securities and strong fundamentals Indian debt is preferred in the region.
Some moderation in the GDP growth in Q1 FY18 was expected. But the growth rate of 5.7% was a bit of a surprise.
These funds invest in highly liquid government instruments. You can invest even for a day and get your funds back the next business day
Total return index captures dividends and show true picture of fund manager’s performance.
A change in credit rating of a bond changes the yield the bond offers.
SIP work irrespective of market sentiment. Marry the SIP with your financial goal and you are home.
Only a fund with a relatively smaller corpus size can be quickly repositioned; a large fund will have the baggage of existing portfolio which should not be disturbed.
Unlike other instruments like PPF, NSC and Long term deposits, an ELSS is a long-term wealth creator due to its consistent equity exposure.
The average SIP size is Rs 3,250 and the month-wise collection through SIPs is just under Rs 5,000 crore per month now. It shows investors are walking in the right direction.
Balanced, MIPs, Equity Savings and Dynamic Allocation are categorized as Hybrid funds
In a passively managed fund, the investment strategy is to track the benchmark of the asset class and ensure that the returns of the fund are in line with the performance of the broader asset class. Therefore, investments in passive funds are rarely altered.
FMPs helps investors diversify investments across a portfolio of fixed income instruments.
While debt funds, unlike fixed deposits and small saving schemes are also subject to market risk, though less than equity funds, the return expectation is commensurately higher than traditional products over the same tenure.
Patil expects liquidity to remain strong, especially domestic money that is not expected to be abating as retail flow is coming, pension fund money is also flowing, so Rs 10,000 crore looks like will be sustainable on monthly basis