You should avoid taking any extreme view on your fixed income portfolio. If the yields on long duration bonds move up, then there will be marked to market losses on these bonds as well as on debt fund schemes investing in them.
This comes following a net outflow of Rs 32,722 crore in May and an inflow of Rs 54,756 crore in April, data available with Association of Mutual Funds in India (Amfi) showed.
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Rising crude oil prices and possibility of the US Fed raising interest rates in March add to worries
We do not take schemes out of MC30 just because their ratings dip
Here's the second half of our 2-part series on the kinds of investments made by debt mutual funds. Sumaira Abidi explains investments which have a tenure longer than a year.
In this first part of a two-part series on the kinds of investments made by debt mutual funds, Sumaira Abidi explains investments with a tenure of up to a year.
The outflow comes following an inflow of Rs 1.69 lakh crore in December quarter, Rs 35,522 crore in September quarter and Rs 1.09 lakh crore in June quarter.
SEBI’s move on valuing AT1 bonds will protect investors, but may kill the market for these bonds
Gross inflows in equity funds were almost stable, but redemptions jumped in October
According to Association of Mutual Funds in India (Amfi), MFs that invest in fixed-income securities saw an inflow to the tune of Rs 63,665 crore last month as compared to an inflow of Rs 43,431 crore in April.
This isn’t the first time the RBI is helping mutual funds industry. In 2008, in the aftermath of the global financial crisis, the RBI had stepped in to save the sector. The central bank then opened a special window to provide banks with funds to support mutual funds.
Some Indian companies have approached courts to stall rating agencies from downgrading their debts
The spike in the returns of very short tenure funds should not be viewed as an upcoming rally
If an entrepreneur runs a highly successful business, it doesn't necessarily follow that she will do equally well in a completely unrelated industry.
Expect the flows into equities and debt funds to continue as other assets are not so attractive, said Sundeep Sikka, ED & CEO, Reliance Nippon Life AMC.
Housing finance companies (HFCs) are elated with the Securities and Exchange Board of India‘s move to hike the investment limit for debt mutual funds to 15% from 10% earlier.
Growth for the company slowed down in the third quarter to 20-21 percent from 25 percent due to demonetisation and Q4 growth would also remain around similar levels, says V Raghu, ED, Repco Home Finance, adding that pickup would be witnessed in next financial year.
Dipen Sheth, Head-Institutional Research, HDFC Securities is confident that with the current government in power, the politics and economics will converge. So the themes that would play out over the next two years would be housing, agriculture and rural infrastructure.