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Multi Asset Allocation funds are hybrid mutual fund schemes which invest in 3 or more asset classes. According to SEBI regulations multi asset allocation funds must invest minimum 10% each in at least 3 asset classes. Apart from the two most popular asset classes, debt and equity, these schemes invest in asset classes like gold, real estate...

Asset allocation is a strategy to balance risk and returns by investing in different asset classes. The major asset classes are equity, fixed income or debt and in some cases, also gold. Financial planners suggest that right asset allocation is critical in achieving your financial goals, since it is the most important attribute of portfolio performance...

We have reviewed Principal Emerging Bluechip Fund, a large and midcap equity fund from Principal Mutual Fund stable, a number of times in the last few years. In our usual fund reviews, we look at a performance of a scheme across various market conditions, performance versus benchmark and peers, portfolio composition etc. In this post, we...

Bharat Bond ETF, A Government of India initiative,is a fixed income exchange traded fund (ETF). The ETF has fixed maturity dates. The ETF invests in Public Sector Undertaking bonds maturing on or before scheme maturity. If you have a demataccount you can buy the ETF from stock exchange. If you do not have a demataccount then...

Risk diversification in investment parlance is essentially an application of the age old idiom, “Do not put all your eggs in one basket”. Prices of different assets rise or fall depending upon market and economic conditions. If you spread your investment over different assets, your risk of making a loss reduces compared to investing in a single...

Volatility is the fluctuation in the price of an asset. Asset prices are rarely unidirectional in the short term. Some asset classes are much more volatile than others e.g. equity is much more volatile than fixed income or gold. Volatility is the measure of risk in an investment. The chart below shows the price movement of Nifty 50 over the past one...

The outbreak of COVID-19 pandemic has caused great turmoil in equity markets all over the world including India. The lockdown announced by the Government in late March and gradual reopening of the economy in the face of continuing rise in COVID infections is likely to have an adverse impact on economic growth and corporate earnings. As a...

Asset allocation is diversifying your investment into assets of different risk classes e.g. equity, debt, gold etc. Equity as an asset class can grow your wealth over a long investment horizon, whereas debt provides stability and generates income for you. Gold as an asset class is usually counter-cyclical to equity and a long term hedge against...

Principal Focused Multi-cap Fund is one of the best performing focused equity funds in the last 6 months to 1 year. The scheme was ranked 4^th among 22 focused equity schemes in terms of last 6 months performance and 4^th among 19 schemes in terms of last 1 year performance. The chart below shows the trailing returns of Principal...

Interest rates have been falling for the past couple of years. Since the beginning of the COVID-19 outbreak Reserve Bank of India has cut the repo rate by 115 bps, prompting banks to bring down fixed deposit interest rates even lower. General 2 to 5 year FD interest rates of major public and private sector banks are now in the range of...