Watch the Swatantra TV Series to learn about various investment options in mutual funds that can help teachers have a financially secured future. Witness an engaging session with Mr. Lalit Nambiar, Fund Manager and Head Research, UTI AMC & Mr. Satish Pandey, MD & Head, Private Wealth Management,....
Watch the Swatantra TV Series to learn about various investment options in mutual funds that can help teachers have a financially secured future. Witness an engaging session with Mr. Lalit Nambiar, Fund Manager and Head Research, UTI AMC & Mr. Satish Pandey, MD & Head, Private Wealth Management,.... Show all Video
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MKTS at new peak: where to invest
Published On , 2 Jul 2017 By ET Wealth
Currently the sensex and the nifty are both at all-time peaks. This is giving several investors the jitters: What if the markets suddenly witness a sell-off and their gains are wiped off. The fears are normal. There have been several instances in the past when markets went into a sell-off mode after strong bull rallies. So the question is how they could ring fence their portfolio in the current market situation. Balanced funds, which invest a substantial part of their portfolio in equities and a significant part in debt could be a better option to invest in.
HOW TO INVEST IN A BALANCED FUND
There are some financial advisors who advise their clients with conservative investing approach to shift part of their portfolio into balanced funds
Any new investment, compulsorily go into one or two balanced funds
This way existing investors can reduce their dependence on equities
Also raging bull rallies usually disrupt the asset allocation process which could be corrected through a systematic investing in a balanced fund
If an investor has some large sum of money to invest, he could invest it into a liquid fund and then set up a systematic transfer plan into a balanced fund
This was they can slowly shift their investments from very low risk investments (liquid funds) to moderately risky investments (balanced fund)
SOME DO’S AND DON’TS
Tax efficiency: Ensure that the balanced fund is investing at least 65% in equities
Alternately check if the fund has an arbitrage strategy to enjoy better tax efficiency than debt funds
However, ensure the equity portion is not too high, something that may not reduce your risk substantially when markets are at a high
Review the fund performance, look for a good fund house with a long track record
Past performance is important, but that should not be the sole criteria to select a fund
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Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
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