Whenever the returns of any category tops equity fund returns, investor interest in such a category goes up. It’s the turn of the multi-asset allocation funds now. And going by the number of queries we have received, we know many of you want to know whether to invest in this category.
Arbitrage funds and liquid funds are very different products although their returns are quite comparable. The difference between the spot and futures market is largely a reflection of the short-term interest rate. The additional returns in arbitrage, if any, come from the mispriced opportunities. In the absence of volatility, a liquid fund may provide better returns.
You will soon be receiving money on some of the segregated Vodafone Idea debt units of Franklin India.
The NFO of the latest tranche of the Bharat Bond ETF – a portfolio of high-quality PSU bonds from the Edelweiss AMC – will be open from July 14-17, 2020.
At the end March 2020, we recommended 3 MF debt options that you can invest in over the next 2 to 3 years to capitalize
This is the second in our 2-part series on managing your portfolio when you near your goal. In this second and concluding part, we shall answer if you should have equity in your portfolio, especially in your retirement. We will cover the following questions:
Now, with Franklin India AMC facing multiple lawsuits on the manner of winding up its six debt funds – the saga has taken a new turn.
• Lawsuits by unitholders against Franklin bring to light the fact that the rights of unitholders under SEBI regulations are ambiguous. It cannot simply be assumed that unitholders rights are limited to simply voting for liquidating a fund’s assets.
• In communicating with unitholders, Franklin’s line of argument also comes across as somewhat high-handed.
Some of the common questions we are asked when people near their goals are:
• How close to the goal should I start moving out of equity?
• Should I move out of equity entirely?
• Should I move out by selling lumpsum or should I do a STP/SWP?
• Should I move to debt funds or fixed deposits?
• If I leave some money and move out of only some funds, which category of funds should I move out of?
If the recent events in the debt space brought to light the liquidity risk arising from lower rated papers, you probably haven’t seen the unfolding of various kinds of risk since September 2018. In 2013, when duration became a risk on the back of rate hikes, money flowed copiously to credit risk over the next 5 years. Now, the cycle has turned. Money is moving to duration from credit risk.