So what’s ahead for the prime debt outlook 2022? Do we expect rates to now sidle sideways or to continue their climb? Though the onset of Omicron may see the MPC continue to make dovish noises and delay repo rate hikes as much as it can, we think that market interest rates will continue to climb in 2022 irrespective of whether or not MPC acts.
On December 1, you would have received text messages from various AMCs on the ‘Potential Risk Class Matrix’ (PRC) of the debt schemes you hold. If you’re worried about any change in risk profile of your fund based on this, you should read this article.
If you have noticed the portfolios of dynamic asset allocation funds with a fundamental-only driven model, you will see them sporting net equity holdings of under 40% now. In a market where over 40% of the stocks have a price earnings ratio of over 50 times or no PE at all (i.e., the company is loss-making), dynamic asset allocation funds can draw little comfort in holding higher allocation to equity.
Our MF Review Tool is among the most oft-used products on our platform. In this tool, we give you buy/sell/hold calls on funds, along with a reasoning for the call. Where we give sell calls, we also direct you to the section in Prime Funds that’s the closest comparable to the ‘sell’ fund. Now, all this is fairly straightforward.
For the first quarter of FY-22 listed steel stocks have generated profits that are already three-fourth that of the full year ending FY-21. The sector has thus stood out for its June quarter earnings, the 2nd wave of Covid lockdown and drop in consumption notwithstanding. Higher prices and export opportunities buttressed earnings despite a drop in domestic sales.
SEBI has come out with its order regarding l’affaire Franklin Templeton debt funds. The 100-page document is categorical in its indictment of the AMC and the ways in which these debt funds were managed. 2 messages are clear from the order: One, investor protection is paramount to the regulator. Two, fund managers and AMCs cannot take their fund management responsibility lightly.
Mirae Asset has come out with a NFO of NYSE FANG+ ETF and a fund of fund (FOF) with the same underlying ETF. This ETF
ICICI Pru Nifty Low Vol 30 ETF now has a companion fund of funds that investors can use for SIPs and investments. Vidya Bala reviews the new offering.
Debt funds are back to worrying many of you. Returns are dipping, there’s a lot of talk on yield movements both at home and in the US, there’s the question of where rates will head now. Over the course of the past several weeks, we have fielded several questions from you on what this means and what you should be doing with your debt funds.
We’ve written extensively on the developments in the debt space in different articles. But here’s answering the questions that appear to worry you the most.