The Franklin Ultra Short Bond fund is a debt mutual fund which invests in various short term corporate bonds, government securities and money market instruments. If you look at the holdings of this fund, you will observe that they all carry a credit rating. A credit rating gives an idea about how safe or not is the […]
Should you have different portfolios for different goals?
Venkat has identified 6 goals in his financial plan. His own retirement due in 30 years. His daughter’s higher education due in 15 years and 18 years respectively. He needs a downpayment for his home in 10 years. He wants to maintain an emergency funds portfolio and finally, he wants to buy a car in 5 […]
Confused – Should I invest lumpsum now or through STP?
You have Rs. 50 lakhs which you want to invest in equity mutual funds. But then you see stock markets touching all time highs. You are scared, what if you invest now and the markets fall, resulting in negative returns for you? So, you are confused if you should invest all of it lumpsum or in parts through a […]
Does cash holding in mutual funds affect performance?
There is a concern raised on rising cash holding levels in mutual funds. The argument against holding cash is that it can lead to underperformance as the markets may rally faster than the funds can search for opportunities to deploy the cash. Let’s see if this argument holds any water. Why is a fund holding cash in its portfolio? Point 1, a fund needs […]
Closed ended funds – Should you invest or avoid?
Have you heard of or invested in the following funds: DHFL Pramerica Hybrid Fixed Term Fund Series 34 1240 Days Birla SunLife Focused Equity Fund Series 4 ICICI Prudential India Recovery Fund Series 2 Reliance Dual Advantage Fixed Term Fund Series VI Plan A 1094 Days Reliance Capital Builder Fund Series B Theses funds represent […]
Why Index Funds?
Investing via index funds is a popular strategy in developed markets such as US, UK and Canada. In India, this strategy has failed to deliver. This is indicated with the poor response that index funds in India have received. Having said that, investing in index funds has some clear benefits. Here are a few reasons you should […]
