Investing in a focused fund can be tricky. The performance of a focused fund largely depends upon the fund manager’s ability to spot stocks that can potentially see significant re-rating in valuations. If the fund manager gets his stock-selection right, investors would gain from outperformance when markets run-up, but it can also backfire as pointed out above. … [Read more...] about Invesco India Focused 20 Equity NFO: Should you invest?
The schemeSBI Magnum Children’s Benefit Fund (Investment Plan) would look to invest at least 65 per cent in domestic stocks. The remaining portion will get allocated to international equities (maximum up to 35 per cent) and gold exchange traded funds (up to 20 per cent).Your funds are locked-in for five years, or till the child turns 18, whichever is earlier. You can invest only in the minor’s name from the minor’s bank account or from a joint account with the minor. … [Read more...] about SBI Magnum Children’s Benefit Fund (Investment Plan) NFO: Should you invest?
"There is also a huge divergence in returns across and within the sectors which lays emphasis on the right stock selection. Our investment expertise and research prowess enable us to identify the right investment ideas with the potential of generating wealth and helping investors get closer to their financial objectives." … [Read more...] about Invesco Mutual Fund launches Focused 20 equity fund
Watch for high impact cost and tracking errorThe lack of liquidity has remained an Achilles’ heel for the growth of ETFs. As a result, ETFs witness high impact costs. So, when an investor places an order for buying units of the ETF, she may not be able to buy her entire lot at the lowest available price. This could happen when the ETF is thinly traded, and a new buy order itself leads to higher prices. In a liquid market, the impact costs are minimal, as buying and selling happens at almost every price point.Investors can also face challenges when ETFs start to show wide tracking errors. This is prone to happen when markets are highly volatile. For instance, when Nifty saw a sharp fall on March 16, ETFs couldn’t mimic the fall as they were supposed to. Some ETFs saw a limited dip or in some cases they closed in the positive terrain. … [Read more...] about Investors take to ETFs as fund houses serve a wider spread
Where do you see opportunities on the long-end of the yield curve?The yield curve is so steep that the spread between the one-year Treasury bill and seven-year government bond is roughly 250 basis points. This allows for a reasonable excess return over the one-year Treasury bill, if yields are in a range. Even accounting for minor mark-to-market fluctuations, it is a good carry-adjusted duration trade if one is positioned at the right points on the yield curve. Simply put, carry is income accrual from yields. … [Read more...] about Gilt fund investors must have a horizon of more than 3 years: IDFC MF