Even since Franklin AMC wound up its 6 schemes, the credit risk funds have been facing very heavy redemption pressures. I copy the Assets under Management for Credit Risk funds for various dates. December 31, 2019: Rs. 62,704 crores March 31, 2020: Rs 55,380 crores April 23, 2020: Rs. 48,576 crores (the day Franklin wound up its 6 schemes) April 30, 2020: … [Read more...] about AMCs transferring bonds from Credit Risk Funds to Hybrid Funds: Not good
Is this a good time to invest? Are the markets too cheap or expensive? Let’s look at historical data to get a perspective. In this post, let’s look at Nifty PE levels and see if this provides some information about prospective/future Nifty returns. I have considered Standalone P/E of Nifty 50 as reported on the NSE website. You can download the complete data from this … [Read more...] about What does Nifty PE indicate about future returns?
Many of us invest in aggressive hybrid funds (balanced funds) to earn good returns with lower volatility. We believe that the equity portion will provide the upside and the debt portion will cushion the downside. Over the long term, this may result in better absolute returns than even a pure equity fund (or at least better risk-adjusted returns). Has your hybrid fund … [Read more...] about Has your Balanced Fund (Hybrid) delivered value?
Franklin debt mutual fund fiasco has many debt MF investors worried and rightly so. It is their hard-earned money at stake. The worry is that the corporate bonds in the portfolios of their schemes may experience default. We discussed in the previous post how you can check if your debt mutual funds are safe. However, as an investor, your concern shouldn’t be limited to just debt … [Read more...] about The Credit Risk in your Hybrid Mutual Funds
After Franklin debt mutual funds winding up last week, many debt mutual funds investors are in a shock. Not just those whose money got stuck in one of the six closed Franklin funds. Even other investors are worried about their debt mutual fund investments. They do not want a Franklin like closure happening with any of their funds. And their fear is not justified. If they … [Read more...] about How to find if your Debt Mutual Fund Scheme is safe?
Franklin Templeton AMC dropped a bomb yesterday. In a communication dated April 23, 2020, it notified that it is winding up 6 debt mutual fund schemes. Franklin Low Duration FundFranklin Dynamic Accrual FundFranklin Credit Risk FundFranklin Short Term IncomeFranklin Ultra Short BondFranklin Income Opportunities Fund These are very popular schemes. The combined … [Read more...] about Franklin winds up 6 Debt MF schemes: What does it mean?
A sharp fall in equity markets over the past couple of months have brought back the importance of asset allocation in focus. The market fall was broad-based. It didn’t really matter which fund or stock you invested in. Almost everything fell. What mattered was how much of your money was in equities. Portfolio 1: 80% of your portfolio in the best-performing equity … [Read more...] about What is the Right Asset Allocation for your portfolio?
Moving abroad for employment or planning to shift back to India permanently? How will your income be taxed? Can you continue holding NRE deposit and continue to get tax-free interest? Well, everything begins with finding out whether you qualify as an NRI or a resident. And this may not always be easy. To add to the confusion, the definition of Non-resident is different under … [Read more...] about Who is NRI as per FEMA and Income Tax Act? (Latest Rules)
The current market crash has been very painful. Equity portfolios have taken deep cuts. During such times when we are so occupied with limiting losses in our equity portfolios, we might lose out on peculiar tax-saving opportunities that these times may throw up. I am talking about tax-loss harvesting, where you can use losses from one capital asset to set off capital … [Read more...] about Market Crash: Use Tax Loss Harvesting to Reduce your Tax Liability
The last few weeks have been terrible for equity investors. And we don’t know if it will get worse. The market correction has been savage. And nothing has been spared. The best of blue chips have been battered. So have mid and small caps. Global equities have been trashed too. It is not just the quantum of correction but also the pace of it, that has most investors … [Read more...] about Market Crash: How could we have reduced the pain?