hybrid funds
Commentary
Vidya Bala

Hybrid funds: Should you invest in them?

“Can I invest in hybrid funds” is a question that we often get. Ranging from the aggressive equity-oriented funds to arbitrage funds, the broad term is ‘hybrid’. We have already discussed some of the key categories of hybrid funds in our earlier articles.
However, this one will cover all of them in a single essay and let you know when and whether you need them.

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Recommendations
Vidya Bala

Prime Recommendation: 2 Debt funds to limit current market volatility

For those of you spooked by the continuing volatility in debt funds, our earlier article would have explained why these ups and downs prevail now. If you have money to be deployed or profits booked out of equities and waiting in the sidelines, you may hesitate to deploy it in this debt market condition.
To speak the truth, there are no categories other than overnight and liquid that are spared from the current volatility. However, if one looks at it on a relative basis, select funds from ultra-short, low duration and money market have held on, notwithstanding the see-saw.

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reliance industries
Stocks
Vidya Bala

8 things you need to know about Reliance Industries’ demerger plan

Reliance Industries (RIL) put out more details of the proposed demerger of its Oil to Chemicals (O2C) business that it announced earlier in 2020. The company now seeks approval from shareholders, creditors, regulatory authorities, Income Tax authority, and the NCLTs in Mumbai and Ahmedabad to demerge and set up a fully owned subsidiary for the O2C business.
This article will simply seek to explain the contours of this demerger and any immediate impact if you are a shareholder in the company, in the form of a Q&A.

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debt funds
Mutual funds & ETFs
Vidya Bala

Why your debt funds have negative returns and what to do

Most of you are now comfortable with the fact that gilt funds can deliver negative returns in the short to medium term when rates move up. We have also written about it here. But the negative return prevalent in the past month or so, across most debt fund categories has troubled many of you.

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debt fund
Recommendations
Vidya Bala

Prime Recommendation: A debt fund for the new rate scenario

Two events have set the stage for a rise in yields, whether the RBI pauses or hikes rates. One, a few weeks ago, the RBI closed the tap that pumped liquidity into the system. That meant no more excess supply of money. This caused an immediate rise in short-term yields, causing mark-to-market losses in some funds over a week or two. In just 2 months, the 3-month government bond moved from 2.9% in December beginning to 3.36% now. This is a sharp move for a shorter tenure bond.
Two, Budget 2021 has decided to retain its market borrowing at Rs 12 lakh crore, same as the pandemic-hit year. It has also provided many novel measures to tap the debt market for infrastructure financing. The 10-year gilt yields climbed sharply as the budget was announced.

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Stocks
Vidya Bala

Stock recommendation: Stock to ride the IT transformation

The COVID-19 pandemic has increased the urgency of digital transformation for enterprises across the globe. And this has positioned the IT sector well to catapult growth over the next 2-3 years. This is our preferred IT stock pick.

Premium article available only to subscribers.

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Mutual funds & ETFs
Vidya Bala

Outlook 2021 – Equity

The Nifty 50 has rallied 84% (March 2020 lows to Dec-20) in just nine months and the rally has been driven mainly by a global liquidity surfeit. Therefore, forecasts and estimates go that extra mile only to get more erroneous than they usually are. Given this strange combination of heady markets and uncertainty, we decided that …

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HDFC Housing Opportunities fund
Mutual funds & ETFs
Vidya Bala

Should you hold or exit HDFC Housing Opportunities Fund?

HDFC Housing Opportunities Fund, a closed ended thematic fund, launched in December 2017. It sought to invest in housing and all other allied sectors including financing as the sectors looked attractive then. The fund has a mandate to invest at least 80% in its primary theme and up to 20% outside its stated theme.

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