Sarbajeet K Sen

Stay invested in quality smallcap funds, if risk profile and horizon allow

Investment is risky but medium-term outlook for companies in certain sectors is favourable

Equity or debt-oriented? Let risk profile and time horizon decide for MAAFs

Amid market turbulence, investors seeking stability with reasonable returns may multi-asset allocation funds

Low-volatility index funds, ETFs show lower drawdowns and higher returns

Low-volatility indices typically consist of the least volatile stocks within a particular index

Ultrashort passive debt funds offer high yield, low risk for 3-6 months

These passive debt funds replicate CRISIL's index, comprising AAA-rated instruments maturing in 3-6 months

Tech sector funds: Stay invested if you have risk appetite, 7-year horizon

Many Indian information technology (IT) firms rely heavily on the United States (US) for revenue

NFOs trading below launch value: Consider exit if theme is too narrow

NFOs come with inherent risks that investors should have considered before investing

ESFs: Ideal for investors seeking FD-plus returns, low volatility

As of January 31, 2025, ESFs managed assets worth ₹42,161 crore, according to the Association of Mutual Funds in India

Momentum funds: Invest if you have long horizon and stomach for volatility

Momentum funds follow a thematic approach, buying stocks in an upward trend and selling when the trend reverses

Dividend yield funds: For risk-averse investors seeking lower volatility

The dividend yield acts as a cushion that prevents stocks from falling further

Gold scaling new peaks: Book profit if weight in portfolio exceeds 15%

Geopolitical tensions and fears of trade wars due to anticipated US tariff announcements are the key drivers of gold prices

Consumption funds: Budget boost and young spenders to drive theme

The Budget's tax cuts, with an estimated revenue foregone of Rs 1 lakh crore, are expected to improve sentiment and have a multiplier effect on consumer demand

More disposable income in hands: TDS threshold for senior citizens doubled

Taxpayers can now file updated returns for four years instead of the previous two

BAF: A refuge from volatility for new and risk-averse investors

BAFs provide an asset allocation tool for investors that are relatively hassle-free and help investors deal with market gyrations better through relatively emotionless investing

Amid market volatility, strengthen portfolio resilience with largecap funds

Largecap companies are generally less vulnerable to economic slowdowns than their mid- and smallcap counterparts

Aggressive hybrid funds: Cope with mkt volatility, benefit from rate cuts

If interest rates decline, the bond component of these portfolios could generate capital gains. Conversely, rising interest rates may cause short-term losses

Fixed income outlook 2025: Lock into peak rates as cuts are likely

The much-anticipated interest rate cut cycle may be delayed, but experts believe the Reserve Bank of India (RBI) will reduce rates in 2025

Wait for NAV and price on exchange to converge before investing

Indian fund houses have cumulatively hit the investment ceiling set by the Reserve Bank of India (RBI): $7 billion for overseas mutual fund (MF) investments

Reducing home loan: Switch to lower-cost loan if credit profile improves

Until repo rate cuts begin, borrowers can explore other options to lower their home loan burden

Consumption funds: Strong returns await investors who can endure slowdowns

Over the past year, consumption funds yielded returns of 28.6 per cent, lower than PSU (46.4 per cent), pharma (42 per cent), infrastructure (39.1 per cent), and technology (37.8 per cent)

LDFs: Suitable for long-term investors with higher risk appetite

LDFs carry significant interest rate risks. Rapid rate increases could result in MTM losses