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NFO review: IDFC US Treasury Bond 0-1 year Fund of Funds
Mutual funds & ETFs

NFO review: IDFC US Treasury Bond 0-1 year Fund of Funds

US stocks and US equity funds have been quite a hit with Indian investors in recent years. Indians invest in these funds to gain exposure to global businesses (Amazon, Alphabet, Mastercard etc). More importantly, they would like to gain an exposure to the US dollar which has appreciated steadily against the Rupee over the years.
But the risks in owning US equities have become apparent lately, with the Fed on a rate hiking spree and the US economy flirting with a recession. US stock indices have lost 12-15% in one year, while US equity funds have seen losses of 6%-12%. But there has been a sharp rise in yields on US government bonds (treasuries).

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Prime stocks update: An exit call on an insurance stock
Stocks

Prime stocks update: An exit call on an insurance stock

In April 2022, we had issued a buy recommendation on a general insurance player, as both the industry and the company itself were emerging from the Covid-driven impact and were poised for growth. Since then, however, the insurance sector has lost market favour as growth has not panned out as expected.

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Moving-this-biotech-stock-from-BUY-to-a-HOLD
Stocks

Prime Stocks update: Moving this biotech stock from BUY to a HOLD

When we gave the call of this R&D focused company engaged in the manufacture of enzymes and probiotics, the company had Covid-related challenges but showed promise of growth. It was later also pulled down by consolidation of acquisitions and costs related to new product launches. We therefore knew that the call would take longer to pay off.ย  The stock went through a significant correction after our initial recommendation as earnings disappointed.

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Prime recommendation: Commodity and the rise of the old economy
Recommendations

Prime Recommendation: Commodity and the rise of the old economy

In March 2021, our call on the commodities fund we added panned out well. But we decided to issue a book profit call in June 2022, as we wanted to preserve some of the profits given the cool off that was visible then in commodity prices.
And as anticipated, commodities cooled off a fair bit globally. Triggered by inflation-driven rate hikes and recession fears, pre-emptive physical destocking (reducing inventories anticipating higher cost of holding inventories) resulted in lower prices. The traded Goldman Sachs Commodity index graph below will tell you that our call was largely in line with this indexโ€™s move.

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Prime Review: LIC's New Jeevan Shanti
Insurance

Prime review: LIC’s New Jeevan Shanti

With the Budget plugging the tax break on guaranteed income plans from insurers, annuity plans are back in the picture as the go-to option for investors seeking guaranteed payouts after retirement. LIC has recently relaunched its popular deferred annuity plan as New Jeevan Shanti (Plan No. 858).

Letโ€™s see how good the plan is and how it stands against competition in todayโ€™s Prime review.

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Prime Stock update: Prospects brighten for our small finance bank call
Stocks

Prime Stock update: Prospects brighten for our small finance bank call

Covid proved be an ultimate stress test for Small Finance Banks (SFBs). As SFBs largely cater to low income borrowers comprising small businesses, small vehicle owners and other self-employed categories including micro-finance, they were among the most Covid-sensitive sectors.

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