On 10-year holding, percentage of positive outcomes is 100%. The index voyaged from 1,000 to 20,000 in little under 28 years. To reach 10,000 it took little less than 22…
Posts TaggedRisk Management
Are Individual Equity Investors Moving Towards Mfs?
The share of individual investors in stock market trades fell to 34.9 percent in FY24, till July 2023 from a 45 percent share in FY21. A look at the increase…
Your Money: Performing Credits Carry Higher Risks
But their yield levels are higher than that of debt MF portfolios In the context of investing in bonds / debentures, the risk level of getting or not getting your…
Debt Funds Still Work, Even Without Indexation Benefits
Inflows in debt funds continue despite the removal of indexation benefits, which was more of a psychological shock than hard fact. When the Finance Act 2023 took away the indexation…
Return And Risk: A Ballpark But Effective Indicator
In investments, risk and returns go hand in hand. Higher the risk, higher is the return. Or, at least, the expected return. There is a fine difference. The risk you…
Credit Risk MFs: Is The Worst Over?
The storm of defaults in debt funds that happened—since the collapse of IL&FS in September 2018 till the Yes Bank additional tier 1 perpetual bonds write-off in March 2020—was the…
Credit Risk: Defaults By High-Rated Issuers Show Avoiding Risk Is Not So Simple
Joydeep Sen In an earlier article, we had discussed the contours of credit risk funds, the risks and the mitigants. Today we discuss a related but slightly different concept: the…
Debt Fund Risk: Best Solutions Are The Simplest
The types of risk in fixed income funds are many: interest rate/volatility risk, credit risk, counterparty risk, concentration risk, liquidity risk, etc. But the two major risks, going by the…
How Does Debt Fund’s Maturity Roll-Down Help Manage Market Risk
Joydeep Sen When we say passive fund management, we normally refer to index funds, which mimic a given index such as Nifty or Sensex. However, the index itself can be…
Bad Loans And Investment Climate: Not As Bad As It Seems
SYNOPSISSome data indicates that banks’ bad assets are near to bottoming out When we are bombarded with something every quarter, we end up believing it. In fact, sometimes it seems…
Looking To Invest In Bank Perpetual Bonds? Beware Of Risks
The ICRA rating rationale states that rating for the Basel III compliant Tier I bonds is four notches lower than the Basel III complaint Tier II bonds of the bank…
Asset Allocation: Looking To Book Profits In Equity Now? Here’s Why You Should Shift To Short Term Bond Funds
It has been proven that portfolio allocation leads to long-term optimum results on investments. Awareness among investors is gradually increasing on the imperative of allocation. It has been proven that…