SME IPO bet, aerial arts: Top personal finance stories of the week

What risks investors face when they back small and medium enterprises and how aerial art is becoming a popular fitness culture

Initial public offerings (IPO) of small and medium enterprises (SME) have been getting heavily oversubscribed and witnessing substantial listing day gains. However, the regulator has warned that promoters of these enterprises tend to inflate their balance sheets, and there is inadequate due diligence on these offerings by the market ecosystem. In this week’s lead story, Sanjay Kumar Singh and Karthik Jerome examine the risks people face when investing in these IPOs, and evaluate the question of whether retail investors should participate in them at all.

In the second article, Namrata Kohli explores the growing popularity of aerial arts in fitness regimens, highlighting their physical and mental benefits. Readers will gain insights into the training options and cost one is likely to incur in trying to learn aerial acrobatics.

Premiums of term plans depend on age, so it is best to buy early and lock in the price. If you are 30 and plan to purchase a term plan for Rs 1 crore, check the premium table from Policybazaar.com.

Experts suggest that the three- to five-year section of the yield curve is currently offering the best returns. To capitalise on this, consider investing in a medium-duration fund with a portfolio duration of three-four years. Morningstar’s review of HDFC Medium-Term Debt Fund can help you arrive at a decision in this regard.

NUMBER OF THE WEEK

85,836: New high scaled by the Sensex on September 26

The Sensex touched a new high on Thursday in a rally led by metal and auto stocks. Largecap stocks, which are more reasonably valued, are at the forefront of the latest rally.

One reason for the rally is China’s recent economic stimulus announcement, which has boosted investor confidence and boosted global markets.

Stable economic data in the United States (US) is also fueling the optimistic outlook. A 50-basis-point interest rate cut, and expectations of more, by the US Federal Reserve has also lent fresh impetus to the equity markets. Bond yields have fallen in the US and other developed economies.

Corporate earnings in India are expected to recover in the second half of FY25, propelled by government expenditure. Consumer spending during the festive season is also likely to have a positive impact on the equity markets.

Rate-sensitive sectors like banking, auto, realty, and financials are expected to do well amid expectations that the Reserve Bank of India will have to follow its global peers and cut rates sooner or later.

Instead of getting carried away by the positive sentiment in the markets, mutual fund investors should periodically reassess their portfolios. If they have become overweight on equities, they should book partial profits to get back to their original asset allocation. They should invest the money obtained by selling equities in debt mutual funds and gold exchange-traded funds.