Does asset allocation really matter? While it is about investing across different asset classes, it is much more than mere diversification of a portfolio.
What you need to know about the new ESG equity funds ESG stands for Environmental, Social and Governance. ESG funds essentially apply these non-financial factors as part of their investment framework to identify material risks as well as growth opportunities in a company.
How to generate regular income through SWPs As opposed to the systematic investment plan or SIP which allows you to invest in small amounts on a regular basis, an SWP allows you to withdraw defined amounts in regular frequency.
Does it make sense to go with thematic funds? Whether the thematic fund delivers return or not depends on the theme itself and on the timing too.
Should you know the mutual fund's investment process? An investment process is a defined way in which fund managers and their teams, both debt and equity, go about filtering securities available for investment and arrive at a final choice of what they want to include in their portfolio.
Are REITs, real estate mutual funds or equity shares? In its basic structure, a REIT may look like a mutual fund which is also about pooling of assets, but it’s not quite the same. However, given that its listed-on stock exchanges as a share of a company isn’t it more like investing in equity shares?
Why are liquid fund growth rates trending lower this year and what should you do? We have observed that liquid fund growth rates in the past few months have been trending lower than the usual 6%-7% which was seen a year ago. This is making many investors wonder what they should do.
How does following an objective investment process help the fund manager, and in turn, you? Investment process at the asset manager’s level are over and above regulatory guidelines. How do these processes help and what can be some of the risks?
Are Gilt Funds the safest bet after the Franklin episode? Gilt funds invest primarily in Government securities (G-secs) issued by the RBI on behalf of the Government. Since it invests in bonds that are of highest credit quality, capital protection is more or less guaranteed.
Should you park your money in Arbitrage Funds? They are equity-oriented funds that capitalise on price differences that exist between the cash and derivative market for a share. As the name suggest, the fund manager resorts to arbitrage strategies to make money.
Do you need to focus on focused funds? Focused equity funds follow a similar investment philosophy by maintaining a tight portfolio of not more than 30 stocks. Their aim is to hit the bull’s eye with the right stocks (bought with high level of conviction) and earn a higher return.
