Commentary Archives - Page 3 of 4

Bonds & Deposits

Prime Debt outlook 2022 – Interesting times ahead for debt investors

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.

Aarati Krishnan January 4, 2022 13 Comments

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Prime Funds performance in 2021

Prime Funds performance in 2021
Stock markets did not disappoint you in 2021. The various market cap segments delivered textbook-like bull market returns with small caps outperforming midcaps and midcaps outperforming large caps.

PrimeInvestor Research Team December 23, 2021 14 Comments

Potential Risk Class matrix, Potential Risk matrix

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Potential Risk Class matrix for debt funds – what should you do?

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.

Vidya Bala December 7, 2021 3 Comments

Research Reports

Quarterly review – changes in Prime Funds, our mutual fund recommendations

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.

PrimeInvestor Research Team October 6, 2021 31 Comments

Categories

NFO Review: HDFC Developed World Indexes FOF

This is the HDFC Developed World Indexes FOF, a fund that aims to track the MSCI World index. What’s this index, how does the fund plan to track it, and does it fit a portfolio? Let’s dig in.

Bhavana Acharya September 19, 2021 8 Comments

steel stocks, steel sector results, sector review, steel sector results review

Categories

Steel Stocks – Hot and Shining!

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.

N V Chandrachoodamani August 22, 2021 3 Comments

General

Franklin judgement – What’s said and what’s left unsaid

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.

PrimeInvestor Research Team June 8, 2021 3 Comments

Mutual funds & ETFs

NFO Review: Mirae Asset NYSE FANG+ ETF & Fund of Fund

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

Vidya Bala April 22, 2021 21 Comments

Mutual funds & ETFs

Should you invest in ICICI Pru Nifty Low Vol 30 ETF FOF?

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.

Vidya Bala March 30, 2021 21 Comments

Mutual funds & ETFs

Which debt funds to hold now and other questions, answered

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.

Bhavana Acharya March 21, 2021 23 Comments

Mutual funds & ETFs

2 target maturity government bond fund NFOs – Should you invest?

Target maturity funds invest with a stated maturity and pay you back when the maturity is reached. You can call them an FMP but one that is open-ended and takes fresh inflows and outflows.
With yields beginning to move up, more funds are now beginning to talk about ‘roll down strategy’ or a strategy where a maturity date is fixed thereby ensuring that the portfolio’s average maturity steadily falls as it nears maturity. For example, a 2027 target date fund will have a 6-year maturity now and a 5-year maturity in 2022 and so on, until the maturity reduces to near zero in 2027.

Vidya Bala March 18, 2021 12 Comments

Mutual funds & ETFs

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.

Vidya Bala February 14, 2021 48 Comments

PrimeInvestor - Articles and Reports

Prime Debt outlook 2022 – Interesting times ahead for debt investors

Prime Funds performance in 2021

Potential Risk Class matrix for debt funds – what should you do?

Quarterly review – changes in Prime Funds, our mutual fund recommendations

NFO Review: HDFC Developed World Indexes FOF

Steel Stocks – Hot and Shining!

Franklin judgement – What’s said and what’s left unsaid

NFO Review: Mirae Asset NYSE FANG+ ETF & Fund of Fund

Should you invest in ICICI Pru Nifty Low Vol 30 ETF FOF?

Which debt funds to hold now and other questions, answered

2 target maturity government bond fund NFOs – Should you invest?

Why your debt funds have negative returns and what to do

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