Index funds
Mutual funds & ETFs
Vidya Bala

How to invest in index funds

Some of you wish to invest in index funds and want to know the best index funds. Others want to hold a portfolio of index funds. Building a portfolio out of index funds or adding index funds calls for mixing strategies and market-cap segments. In this article, we’ll try to explain the key characteristics of some of the equity indices and how they can be paired with other index funds/ETFs or with active funds.

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fmp
Mutual funds & ETFs
Vidya Bala

3 reasons why you should not rollover your FMPs now

A recent addendum by Aditya Birla Sun life suggested that investors rollover some of the AMC’s FMPs that are maturing. The reason was that given the low-rate scenario, investors are unlikely to get good interest rates outside once they exit. And that staying invested would provide indexation benefit for capital gains and earn higher returns.
But some investors raised the doubt on whether the FMPs under question were in trouble. We therefore looked at their portfolios. They had high-quality AAA-holdings are unlikely to have had any pressure on repayment. In other words, there does not appear any credit related rollover compulsion.

Premium article available only to subscribers.

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Franklin funds
Mutual funds & ETFs
PrimeInvestor Research Team

Should you exit from ALL Franklin funds now?

Many of our customers have written to us asking whether they should continue with the Franklin Templeton funds that they hold. People are worried not just about debt funds, but about the future of their equity funds as well. These worries are not misplaced given recent developments at the fund house.
As readers of this space know, we have been tracking the performance of this fund house from a time well before the crisis relating to the decision to wind up six debt schemes unfolded. So, for us here at PrimeInvestor, this question of what to do with your holdings is not tough to answer.

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perpetual bonds
Mutual funds & ETFs
Vidya Bala

What to do if your MF holds perpetual bonds?

Perpetual bonds have caused some sleepless nights for fund managers after SEBI’s circular earlier this month. On March 10th, SEBI issued a circular capping the debt scheme exposure to perpetual bonds at 10% and also laying down new rules how these bonds should be valued in debt scheme portfolios. We wrote a short take on it last week suggesting that you wait for clarity. SEBI has now come up with one more circular offering some clarification.

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Mutual funds for the short-term
Mutual funds & ETFs
Vidya Bala

Mutual funds for the short term

Many of you ask us how you should invest in MFs for the short term. This could be for creating an ‘emergency fund’, ‘medical fund’, ‘funds to pay school fees’ or simply for parking money temporarily for the short term.

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Count
Mutual funds & ETFs
Vidya Bala

How many funds should I invest in?

In our earlier set of articles (given below), we have discussed some of the key tenets of portfolio management. How to invest for the long

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prime views
Mutual funds & ETFs
Bhavana Acharya

Prime Views: Why you should avoid this fund category

Inconsistent performance among funds in this category makes it hard to pick a quality one. Increasing credit calls by these funds changes the risk-return profile. Better returns for the same to lower risk possible through other newer categories

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Active vs Passive 
Mutual funds & ETFs
Aarati Krishnan

What are the risks in index funds?

As some categories of active funds in India such as large-cap funds, have struggled to beat the sprinting Nifty50 and Sensex30 in the last couple of years, there’s a surge of interest in index investing.

But are there risks in index investing that investors are ignoring? Read on to find out.

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Get some debt relief!
Mutual funds & ETFs
Vidya Bala

Vodafone’s impact on your debt funds: Here’s what you should do

Recent developments in the telecom space holds the risk of pushing Vodafone’s debt instruments to junk/default status and a consequent erosion to NAVs of funds that hold the instrument. We tell you what funds are affected, and we recommend an exit on funds that have a significant holding in the instrument and suggest alternatives.

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Goals are subjective 
Strategies
Vidya Bala

Are your returns expectations right? Here’s how to find out.

In recent times, you may have read about stories of equity indices or equity mutual funds struggling to deliver double digit returns even over 3 and 5-year periods. If many of you had expectations of say 12% return or a 15% returns these numbers are indeed disappointing.

But here’s a question: how did you form your return expectation? I posed this question to some friends. Their response can broadly be categorized into two: one, they either read or were told that equity markets can deliver 15-20% returns. Two, at some point in the past, some of the stocks they held had delivered this return and it naturally became the ‘best return to expect’.

So, what is the right way to form your returns expectation? How much should you expect from your portfolio? Why is that important?

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