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Tag: Mutual

Reallocate portfolios, go for mid, smallcaps with a 2-year view: S Krishna Kumar, Sundaram Mutual

Reallocate portfolios, go for mid, smallcaps with a 2-year view: S Krishna Kumar, Sundaram Mutual

Finance
Investors are advised to rebalance their overall portfolios to a 55-45, 60-40 allocation in favour of largecaps vis-à-vis midcaps, said S Krishna Kumar, CIO-Equity, Sundaram AMC, in an interview with ETNOW.Edited excerpts:Are you breathing a sigh of relief that finally mid and small cap stocks have stopped falling? They are not rising like a phoenix but at least they have stopped falling.Clearly, the mood is a lot better. The domestic risk on the election outcome is behind us at this point of time. NDA is back with a thumping majority and people expect continuity in policy and acceleration of some of the reform measures the government had been doing and would continue to do. I think with the kind of valuation comfort that you have seen in mid and small caps which are going at 15-20% discou
Tax Arbitrage: The nudge to solve the current debt mutual fund crisis

Tax Arbitrage: The nudge to solve the current debt mutual fund crisis

Finance
By Somnath MukherjeeIt’s been the non-proverbial Ides of several months now for the credit markets. It started with the IL&FS default last year, but it has been a series of blow-ups since then — the latest being downgrades in two Reliance ADAG group companies. The most immediate impact has been on certain debt mutual funds (MF), that have been large investors in several companies that have come under stress. The most debilitating effect though isn’t about drop in prices — after all MFs are market instruments and subject to price volatility — it is about the absolute lack of liquidity in bonds that come under stress. Given that MFs, for most parts, are open-ended vehicles (i.e., unitholders have a right to withdraw their investments on demand), it is the appropriateness of MFs investing
Rating downgrades and payment delays not new to debt mutual funds

Rating downgrades and payment delays not new to debt mutual funds

Finance
The prospects of debt mutual funds are back in focus after Kotak Mutual Fund’s fixed maturity plans (FMPs) failed to return investors’ entire money on account of delay in repayment by two Essel group companies. In the past too, investors in various debt schemes have been affected by ratings downgrades of investments, defaults or delay in repayments. ET looks at such instances. Amtek Auto MF: JP Morgan TIME: August 2015 SCHEMES: JP Morgan India Short Term Income Fund and JP Morgan India Treasury Fund FALL IN NAV: 1-3% BRICKWORK RATINGS brought down its rating to C from A+, while CARE suspended coverage of Amtek Auto. Soon, JP Morgan side-pocketed the Amtek Auto exposure and allotted units to investors. In December, JP Morgan sold Amtek Auto bonds at 85% of the value. Investors, who stayed i
ICICI Pru Mutual Fund launches Bharat Consumption Scheme

ICICI Pru Mutual Fund launches Bharat Consumption Scheme

Finance
ICICI Prudential AMC announced launched the ICICI Prudential Bharat Consumption Scheme. The Scheme aims to benefit from the Indian consumption story, considered as one of the fastest growing consumption markets globally. The benchmark for the Scheme is Nifty India Consumption Index and will be managed by Rajat Chandak and Dharmesh Kakkad. The overseas investments of the scheme will be managed by Priyanka Khandelwal. "Globally, it has been observed that the moment a country’s per capita GDP crosses $ 2,000*, there is a disproportionate rise in discretionary spending and India is poised to cross this milestone in 2019-20,” Nimesh Shah, MD & CEO, ICICI Prudential AMC, said on the launch of the scheme. “With the largest millennial population globally, India offers a growt...
Can mutual funds give multibagger returns like stocks?

Can mutual funds give multibagger returns like stocks?

Finance
Stocks can be multibaggers. They can offer extraordinary returns in a very short period. Can mutual funds ever do that? This was a question thrown at Rajeev Thakkar, Chief Investment officer, PPFAS Mutual Fund, at the ET Wealth Investment Workshop, held at Delhi on February 15. Thakkar explained to the participants at the ninth edition of ETWIW that the idea of a mutual fund is to average out the risk by investing in a basket of securities. “Mutual funds are designed in a manner where they will give an average of total stocks held in the portfolio. If a mutual fund scheme has 25 stocks, the scheme’s return will neither be that of the worst stock, nor that of the best stock,” said Thakkar. This way, returns also get average out," he added. Then am I not better off investin...