uma baskaran’s Post

Week 3 of “MF Categorization & Product Suitability” covering 15 Debt Mutual Funds In Part 1 of Debt Mutual Fund, Mahendra Kumar Jajoo covers topics on  OvernightFunds, Liquid Funds, Ultra Short Term, Low Duration Fund, Money Market Fund, Short Duration Fund, Floater Fund, moderation by #AmitBiwalkar Key Highlights:  Target Mutual Funds offer an alternative to traditional investments with unique benefits. Funds should be rated using Potential Risk Classification (PRC) and the Riskometer for a comprehensive risk assessment. Investors should prioritize the composition of securities over yield when choosing short-term and low-duration funds, ensuring the risk matches the expected return. Liquidity Risks and Regulations Knowing the differences between butterfly (middle duration) and barbell (short and long ends) strategies aids in understanding fund management. On a risk-adjusted basis, debt funds remain a better option compared to similar categories, offering a favorable balance between risk and return. In Part 2 of Debt Mutual Fund, Devang Shah covers topics on Medium Duration Fund, Medium to Long Duration Fund, Target Maturity, Fixed Maturity Funds, moderation by Amit Trivedi Key Highlights: Use categorization by understanding strategy (tactical or strategic), investment horizon, and risk appetite. For tactical allocation, enter long-term investments when the 10-year G-sec yield is 7.25%-7.5% and exit below 6.5%. Take a tactical view for long bond investments. Enter debt funds based on CPI, real rate/repo rate, and G-sec yield. Use overnight, liquid, and ultra-short duration funds for short-term parking solutions. Compare Target Maturity Funds (TMFs), Fixed Maturity Plans (FMPs), and Active Mutual Funds. In Part 3 of Debt Mutual Fund, Suyash Choudhary covers topics on Long duration Funds, Dynamic Bond Fund, Gilt Fund with 10 yr constant, Gilt Fund, moderation by Kirtan A Shah Key Highlights: Long duration funds should be positioned strategically for both new and existing investors. Structural changes in India’s economy will drive a shift towards longer durations in fixed income portfolios.  Portfolios should include both pro-cyclical and counter-cyclical assets. Once again thanks to Network FP and Sadique Neelgund, QPFP® for the insightful sessions last week. Looking forward for tomorrow’s finale. . . . . #MutualFund #networkfp #Equity #hybrid #debt #portfolio #fixedincome #return #risk

Looking to beat fixed deposit returns? Here’s what investors can consider instead of FDs - Times of India A portfolio of AAA-rated NBFCs and HFCs could potentially provide a return of around 8%. (Image source: Freepik) What type of investment options can give better returns than fixed deposits? Fixed deposit interest rates are at a high, but if as an investor you are looking to beat FD returns, then debt is one possible way to go. According to an ET report, Aditya Birla Sun Life Mutual Fund is offering a series of target maturity funds that could be an attractive investment option for investors s... Read more here: https://lnkd.in/dq4ZPUw2 . . Like 💝 Comment below ⏬ Share ✅ For More Such Updates Follow Us @qnewshub @qnewscrunch . . #qnewshub #qnewscrunch #Business

Some private sector banks are looking to invest in alternative investment funds (AIF) after the Reserve Bank of India recently clarified provisioning rules for lenders. An AIF is typically a privately pooled fund, and generally, only institutions and high net-worth individuals (HNIs) invest in them because the outlay is substantial. RBI’s latest clarifications said that lenders will need to provision only the amount invested by the AIF in a debtor company linked to the lender, and not on the bank's entire investment in the scheme. https://lnkd.in/gt6WnVBb

🚀 Hybrid Funds Inflows Surge by 244% in October: What’s Driving the Growth? 📈 According to the latest data from the Association of Mutual Funds in India (AMFI), inflows into hybrid funds skyrocketed to ₹16,863 crore in October, marking a 244% surge from ₹4,901 crore in September. This shift isn’t just a monthly spike—it’s part of a broader trend, with the net AUM for hybrid funds rising 74% in the past year, from ₹5.87 lakh crore to ₹8.72 lakh crore. Additionally, the investor base expanded by 23 lakh folios, underscoring a significant uptick in interest. So, what’s fueling this remarkable growth? 🌟 Here are the key factors: 🔍 1. Market Volatility and Balanced Returns. Amid market fluctuations, investors are leaning towards hybrid funds for balanced exposure to both equities and debt. These funds help mitigate risks while capturing growth, with categories like balanced advantage funds delivering steady returns of 8-10% even in flat equity markets. 🔄 2. Diversification and Internal Asset Rebalancing. Hybrid funds simplify investing by managing asset allocation internally. This eliminates the need for investors to worry about exit loads, tax implications, or market timing. The automatic rebalancing shields investors from excessive losses during downturns and missed gains during rallies. 🛡 3. Tax Efficiency Amid New Tax Changes. With recent tax changes reducing the attractiveness of debt mutual funds, hybrid funds are emerging as a more tax-efficient alternative. Their combination of debt and equity offers better post-tax returns, prompting a shift away from traditional debt products. ⚖️ 4. Superior Risk-Adjusted Returns in Uncertain Markets. Hybrid funds have consistently provided a solid risk-return profile, ideal for investors with moderate risk tolerance. They help address the dual goals of capital protection and growth, reducing anxiety around market timing. As hybrid funds continue to gain traction, they offer a compelling solution for those seeking stability, diversification, and tax efficiency in a single investment vehicle. 📊💰 #Investing #MutualFunds #HybridFunds #WealthManagement #FinancialPlanning #TaxEfficiency

2024 might usher in a new era of opportunity for the 𝗜𝗻𝗱𝗶𝗮𝗻 𝗱𝗲𝗯𝘁 𝗺𝘂𝘁𝘂𝗮𝗹 𝗳𝘂𝗻𝗱 𝗺𝗮𝗿𝗸𝗲𝘁 which has experienced a period of 𝗺𝘂𝘁𝗲𝗱 𝗽𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲 𝗶𝗻 𝗿𝗲𝗰𝗲𝗻𝘁 𝘆𝗲𝗮𝗿𝘀. Here's why: 1. 𝗦𝗵𝗶𝗳𝘁𝗶𝗻𝗴 𝗜𝗻𝘁𝗲𝗿𝗲𝘀𝘁 𝗥𝗮𝘁𝗲𝘀: Economic experts anticipate a potential shift in the interest rate environment. This could benefit specific debt fund categories. 2. 𝗨𝗻𝘁𝗮𝗽𝗽𝗲𝗱 𝗣𝗼𝘁𝗲𝗻𝘁𝗶𝗮𝗹: Debt mutual funds offer diversification and potentially higher returns compared to traditional fixed deposits. With growing awareness, this market segment is poised for significant growth. 3. 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗢𝗽𝘁𝗶𝗼𝗻𝘀: A variety of debt fund options cater to different risk appetites and investment goals. Careful selection based on your financial profile can maximize returns. Share this insightful post! #ICICIdirect #mutualfund #interest #investment #stockmarket #india

Mutual Fund Learning #7: Understanding Risk in Mutual Funds 💡 "Investing is all about balancing risk and reward. Let’s learn how to understand and manage risk in mutual funds!" 💡 Risk is an inherent part of investing, and mutual funds are no exception. Understanding the risks involved will help you make more informed investment choices. Let’s break it down: Types of Risks in Mutual Funds: 1️⃣ Market Risk (Systematic Risk): What It Is: The overall risk that affects the entire market or economy. Factors like inflation, interest rates, and political events can cause market fluctuations. How to Manage: Diversification through a mix of different funds (equity, debt, hybrid) can help reduce the impact. 2️⃣ Credit Risk (Default Risk): What It Is: The risk that the issuer of a bond or debt security in your fund may default on interest or principal payments. How to Manage: Invest in high-quality debt funds with a good credit rating, like AAA-rated bonds. 3️⃣ Interest Rate Risk: What It Is: Changes in interest rates can affect the value of bonds within debt funds. When interest rates rise, bond prices usually fall. How to Manage: Choose debt funds with shorter durations to minimize interest rate fluctuations. 4️⃣ Liquidity Risk: What It Is: The risk that you might not be able to sell your mutual fund units quickly or at a reasonable price. How to Manage: Invest in funds that are highly liquid and can be sold easily in the market. 5️⃣ Inflation Risk: What It Is: The risk that inflation may erode the real value of your returns over time. How to Manage: Invest in equity or inflation-indexed funds for long-term growth to beat inflation. The Indian Advantage: Mutual funds in India are regulated by SEBI to protect investors, but it’s crucial to be aware of the risks before you invest. Understanding these risks will help you make better choices for your financial goals. 🚨 Advisory: This post is for educational purposes only and not mutual fund advice. Please consult your financial advisor before investing. 💬 How do you manage risk in your investments? Drop your thoughts in the comments! 🔔 Like, Share, and Follow our page for more valuable insights to make informed investment decisions! #TheFinanceEssentials #MutualFundLearning #MutualFunds #PersonalFinanceIndia #RiskManagement #InvestmentTips #MarketRisk #CreditRisk #InflationRisk #InterestRateRisk #LiquidityRisk #GrowYourWealth #AllAboutYourWealth #Zerodha #Groww #InvestmentIndia

Equity Savings Funds!!! The markets are taking one big trip to scale upwards almost daily. It’s essential that we don’t get blinded. Take a look around various De-risk Asset classes within the Mutual Funds ecosystem. What is Equity Savings Fund? Equity savings Fund deploys a min of 65% in Equities & rest in Debt instruments. The biggest advantage is the Hedged Arbitrage positions they take within Equity allocation. This sets them apart from the Aggressive Hybrid funds. To avoid the volatility they do invest in debt & fixed income securities so that the overall portfolio delivers a decent return in all weather market conditions. Why is it a favourable Risk Reward strategy? * These funds invest in Equities to generate returns. They do cover the risk here with Hedge techniques. Hence they come with a superior Risk Reward strategy. *They qualify for Equities Taxation due to min 65% allocation to Equities. The Arbitrage portion is also considered as Equities contribution although it’s risk covered. * They provide decent Diversification to Debt securities to have stable returns. What are the Top Performing Funds? (No reco) Sundaram SBI HSBC HDFC Adity Birla Almost all of these funds delivered double digit returns (10-12%) for 5 years period. This is good considering they come with Equities taxation. They are a very good Derisk category with Arbitrage strategy. Who should use this strategy of Funds? Book partial profits from your High Risk High Reward Equities categories & invest in this asset class. This is to protect profits & build a sustainable long term Portfolio. With Markets at elevated levels, it’s a good idea to look at this category. Disadvantages of this Category: Lack of Arbitrage opportunities to generate returns. Unhedged Equities portion is subject to volatility Credit & Default risk in Debt exposure. Follow me for insights on Personal Finance & Wealth Management. Disc: views own, discretion advised. #personalfinance #wealthmanagement #certifiedfinancialplanner

▪️For equity funds, the applicable slab for long term capital gains tax is 12.5 percent and short-term capital gains are taxed at 20 percent. Debt funds are taxed as per the prevailing income tax slab of the individual. For NRIs specifically, any long-term or short-term capital gains tax is deducted at source at the time of redemption. ▪️Some country-specific restrictions exist for NRI investors as well. For example, NRIs from the US and Canada might encounter restrictions on investing in some specific fund houses. However, some mutual funds do allow investments under certain conditions, ensuring accessibility for NRIs based in these countries. ▪️As for repatriation rules, NRIs can invest in mutual funds on a repatriable or non-repatriable basis. If one invests through an NRE account, all the investment proceeds are fully repatriable. However, if one invests from an NRO account, then the proceeds are repatriable only up to $1 million cumulatively for all NRO accounts held in India in the financial year. #banking #lifeinsurance #investments #wealth #mutualfunds #healthinsurance Read more at:

The recent announcement by the Reserve Bank of India (RBI) regarding Alternate Investment Funds is a welcoming move. It sets a positive tone and showcases regulators' agility and openness to ground realities while remaining vigilant. This move allows banks to write back certain provisions, offering much-needed flexibility. However, clarifications around hybrid instruments and debt instruments are still awaited. Alternate investment funds, focusing on granular opportunities like MSMEs & startups, play a crucial role in both debt and equity markets. They have been instrumental in fuelling growth at both ends. The industry eagerly awaits support and comfort from regulators to ensure the country's growth trajectory remains strong. Startups have emerged as propellers of Indian growth, turning dreams into reality and catering to the aspirations of a determined young India shaping a new global order. https://lnkd.in/dmvXvNVp #RBI #ValuAble #VentureDebt #AIF #Funds #Finance

My latest article on Top 5 Investment Options for NRIs published on moneycontrol.com .   If you are an NRI wondering how to invest in one of the world's fastest-growing economies, here are 5 powerful options tailored to help you tap into India's potential: 1️⃣ Equity Mutual Funds & Stocks   2️⃣ Global GIFT City Funds   3️⃣ Portfolio Management Services (PMS)   4️⃣ Real Estate   5️⃣ National Pension System (NPS)    The article link is added in the first comment.  Do read and share your queries.