Fund ratings, at a glance, tell you a little about the history of a fund. For many of you it’s a quick reference on whether a fund is a good one or not. PrimeRatings is a mutual fund rating system. But it’s not simply yet another fund rating tagging on to the list of ratings that are already available. Here’s a look into our ratings process and how we’re different.
Owning bonds, unless you are well-diversified, has become a super risky proposition since September 2018. Credit risk and drying up of liquidity have proved to be lethal combinations to manage for investors. Now the debt ETF space may receive some life with the soon-to-be launched defined maturity PSU Debt ETF.
“Is my fixed deposit with so-and-so company safe?” This query is cropping up often, after the recent default on fixed deposit repayments by Dewan Housing Finance Limited and RBI’s strictures on PMC Bank.
At PrimeInvestor, our approach to curating a list of fixed deposits is to put safety far ahead of return considerations. Here’s the approach we use to choose our recommended list of FDs.
Is it time to move from active funds to index funds?
The answer is no. There will definitely be more space for index investing in your portfolio but that doesn’t mean you can ignore active funds. We’ll show you some numbers on Indian active funds’ ability to beat the indices currently.
It has been 7 years since SEBI came out with direct plans in mutual funds and a lot has happened during this period. At this time, how should an investor decide which plan to go for – direct or regular? What are the factors to consider? Srikanth Meenakshi distills 11 years of FinTech experience and working with investors to provide a roadmap.
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.
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.
Most of us buy insurance to make sure that our finances, or those of our dependants, are protected from fate’s sudden googlies. But what if the insurance company you’re relying on is in a shaky financial situation? This risk is not an outlandish one in India.
Recently, IRDA (Insurance Regulatory and Development Authority) asked Reliance Health Insurance Company to stop selling new health policies and to transfer its older policies to Reliance General Insurance Company, after finding that it was unable to maintain its solvency margins at statutory levels. In June 2017, IRDA had ordered Sahara Life Insurance to stop issuing new life policies and had directed its takeover by ICICI Prudential Life Insurance. The order was later overturned by SAT.
If you’re looking to buy a life or a general insurance policy, it is best to vet your insurer before signing up to avoid such uncertainties. What are the checks you can run to ensure that your insurer is in it for the long haul?
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?
Performance data is clearly showing a declining trend for large-cap funds. Further, data and index behaviour shows that large-cap equity funds will continue to struggle to beat their benchmark convincingly. Selectively picking large-cap stocks directly or a passive strategy of holding large-cap index funds may become necessary