
Prime Stock: Moving this stock from BUY to SELL
Recent regulatory developments have prompted us to issue a SELL call on this Prime Stock.

Recent regulatory developments have prompted us to issue a SELL call on this Prime Stock.

In this quarter’s review, we have made some changes to Prime Portfolios to replace underperforming funds with newer ones. We have explained whether you need to exit or hold the funds we have removed.

We have only a few changes this quarter with some interesting additions in the equity aggressive category and in debt as well. We have also added a couple of themed funds to capture a visible up trend in the economic activity.

The PrimeInvestor Auto++ smallcase puts together auto companies, auto component players, and other diversified companies that are involved in the design and technology transformations unfolding in the industry.

When bond yields started their upward move this year, we started giving calls on G-Secs and SDLs auctioned on the RBI Retail Direct portal. We have one more such call today for those looking for regular income flow for the next 4.5 years.

India’s market interest rates have been rising very swiftly after the recent mid-cycle rate hike by the RBI. In our earlier analysis we had highlighted that bonds issued by the Central and State governments should now be your first choice as and when primary auctions crop up, as they offer the best combination of low risks with high yields currently.

About 10 days ago, we alerted you about the upcoming opportunities you will have in the bond market as we move up the rate cycle. Today, we are recommending 2 government securities (G-secs) that are out as auction in the RBI Retail Direct portal. You might want to check if your brokerage has the option to buy these.

Prime Portfolios are a set of 19 unique portfolios that meet over 30 different investor timeframes and needs. Prime Portfolios are listed under Ready-to-use-portfolios in the Recommendations menu dropdown. These portfolios primarily use mutual funds, but where there are better-suited products such as deposits or government schemes, the portfolios include those too.

If there’s one trend that equity funds don’t seem to be shaking off soon, it is the performance divergence. Over the past few review cycles, we have been highlighting how up-and-coming funds have soared well past the earlier steady performers. Taking stock of the underperformers, the nature of market movements, and returns we have made some key changes to our equity funds in this review cycle.

This is an update on a stock that is in our Buy list, owing to recent developments.

The equity markets have been losing strength and seeing steady correction albeit with temporary rebounds. We thought this was a good time to revisit our stock recommendations, Prime Stocks, and see if you can have averaging opportunities in them.

Private bond placements take place when a company wants to raise debt from the market, but doesn’t offer this to the investing public at large. Instead, the investment bankers offer such bonds to a private group of investors.
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