Investing: Rishi Nathany

What are dynamic bond funds? Should one invest in these right now? For what period should they be held?
Dynamic bond funds generally invest in fixed-income instruments of various maturities and seek to actively manage such investments by playing on the yield curve, based on the fund manager’s expectation of interest rate movements. Given that the interest rate cycle has peaked, one could look at investing in such funds with at least a year’s time horizon for suitable returns and possibly some capital appreciation in case interest rates come down.

I have a mutual fund portfolio of over six equity-diversified funds, as many equity-linked savings schemes and two sectoral funds. I want to streamline it. Most of my funds are showing positive returns. Is it a good time to exit some? I am currently investing in only four of these funds (two sectoral, one ELSS and an equity-diversified fund) via the systematic investment plan route (around Rs 14,000). What should be my strategy?
The way forward would be to first understand whether you need so many funds to stay invested in. If not, try to identify those funds (in your portfolio) doing better over the long run. Focus on these and reduce exposure to the others. It would be a good idea to keep SIPs going in the funds you have chosen. For, they would help you systematically invest in such quality funds over the long term.

 

We have seen gold prices swinging in extremes. The duty on refined gold has now been doubled. I want to start accumulating gold. Which are the cheaper ways of doing so? I have heard about gold ETFs (exchange traded funds), but will I get pure gold on redemption? Is there any exit load?
You could opt for a gold ETF or buy gold in demat form through commodity exchanges. In case you want to convert your holdings into physical form later, you could do so, subject to certain conditions. As far as I understand, there is no exit load on these.

News reports suggest public sector undertakings may give good dividends this year. Is it an opportunity to make a quick buck?
There are such media reports, but they are yet to be confirmed. More, when you buy a stock-cum-dividend and sell ex-dividend, technically, the stock price would fall to the extent of the dividend received. Therefore, I do not see any quick bucks being made out of dividends. You should only invest if you feel that the company has a good long-term prospect, whereby the stock price could go up over time and give you suitable gains.

---

The writer is CEO, Dalmia Securities. Views expressed are his own. Send your queries at yourmoney@bsmail.in