Page 2 - Sarbajeet K Sen

Momentum funds may deliver high long-term returns for aggressive investors

With improving market conditions and clearer sector trends, experts say momentum-based index funds could suit investors willing to take short-term volatility

Run SIP with long horizon, avoid lump sum bets amid high valuations

Despite stretched valuations and market volatility, smallcap funds saw strong inflows in May as investors bank on long-term potential and return to SIPs for stability

Corporate bond funds: Assess portfolio quality, expense ratio before entry

Expect stable accrual-based returns rather than significant capital gains

Consumption funds: Rate cuts to boost growth, but enter with long horizon

Tax relief in Budget, multi-year low inflation and rural recovery are other tailwinds

All market index funds make diversified investing easy and simple

Remember that such funds may correct more than a frontline index during a market correction

Services sector funds: Hold in satellite portfolio if risk appetite permits

Industry is the largest segment of India's economy, offers investment opportunities in multiple high-growth areas

Silver ETFs gain traction as industrial demand, returns outshine gold

Silver is emerging from gold's shadow as ETF returns outpace gold in recent weeks amid rising industrial demand, favourable price ratios and investor interest

Pharma, health care funds: Ignore correction, stay invested for long haul

Sector provides investment opportunity for the long term, according to experts

Dynamic bond funds: Check rate-cycle track record before investing

A dynamic bond fund (DBF) can help investors navigate rate cycles effectively

Why banking and financial services funds are seen as a good long-term bet

The BFSI space offers a broad mix of segments

Manufacturing funds: Bet on potential gains from global trade shifts

There are 12 actively managed manufacturing funds, which have total assets under management (AUM) of ₹32,999 crore. Four passive funds also exist; they together have an AUM of ₹473 crore

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