On Sep 11th 2020, SEBI modified asset allocation rules of multicap mutual funds claiming that these funds have not remained “true to label”. They then released an additional clarification that the flexibility to invest across market cap does not mean funds could ignore small caps. What was SEBI’s motive behind this rule? Or was it…

Parag Parikh Long Term Equity Fund has issued a “change in the fundamental attribute” addendum to the scheme mandate including covered call options. In this article, we explain this strategy, why it is used and what investors should do when they receive such notifications from AMCs.

SEBI was forced to release a press release on 14th Sep 2020 after its Sep 11th circular change in multicap fund asset allocation caused concern about fall in large caps in the coming days. SEBIs unnecessary change has lead investors to ask if they should consider an exit from multicap mutual funds.

In a circular dated Sep 11th 2020, SEBI has modified asset allocation rules for multicap mutual funds. We discuss how this rule is unnecessary and is likely to affect investors.

Even an occasional market observer would know that the NASDAQ 100 index has zoomed past the S&P 500 after the March 2020 market crash. Has it begun to correct now? I received this question a couple of days ago. “I have been investing in Motilal Oswal NASDAQ 100 Fund of Fund via SIP since inception…

After the market crash in March 2020, SBI Small Cap and DSP Small Cap funds opened for lump sum purchase. Now SBI Small Cap Fund has announced that it will not accept lump sum investments from Sep 7th (it had opened on March 30th). Does this mean investors should be wary of poor returns in…

Portfolio folio rebalancing is like a “system reset”. It is used to remove money from a well-performing asset class (eg equity) and move it to another asset class (eg. fixed income).  Investors have many questions regarding this essential portfolio management activity and one of them is: “should I use the best performing mutual fund to…

Are you delaying your investments waiting for the market to fall again? Here is why waiting for the suitable time to invest in the market can an expensive and irreversible mistake.

It seems incredulous to think that the Nifty was 12,174 on 13th Feb and fell 37.5% over the next 39 days to 7610 on March 23rd. Then over the next 158 days, it gained 53% to close at 11647 on Aug 28th 2020. These are 10 mutual funds (from 9 categories) that have moved up…

“My goal is long-term. If my risk appetite is moderate, what kind of mutual funds should I choose?”. This is a common question asked in personal finance forums. We discuss what investors in this situation should do.

Let us consider this question asked by a reader: “Instead of starting a mutual fund SIP, can I invest small amounts on my own each month?” The answer might seem trivial to old investors, but it worth clarifying for the sake of newbies.

Investing in mutual funds is only a choice and has nothing to do with “financial literacy”. Imagine yourself as a financial advisor with no conflict of interest – meaning you are neither a sales guy nor looking to profit from a percentage of a clients networth. A client comes to you and says, “I want…

A multi-asset mutual fund is a new fund category introduced by SEBI. It has the mandate to invest at least 10% each in equity, debt and gold or permitted commodities at all times. We discuss the nature of available multi-asset funds, when investors should consider them and what to expect. We also consider if these…