Page 4 - Sarbajeet K Sen

Rate cuts and higher discretionary spending likely to boost tech funds

These schemes invest at least 80 per cent in shares of technology companies. As of August 31, 2024, 26 technology sector schemes managed assets worth Rs 45,637 crore.

Simplify your DIY portfolio management with multi-asset fund of fund

The FoF fund manager picks multiple schemes, depending on the FoF's mandate

Is your portfolio heavy on growth strategy? Add dividend yield funds

"Companies that pay high dividends typically have strong cash flows and tend to be more stable," Atul Shinghal, Founder and CEO of Scripbox, says

Allocate 5-10% to banking funds to gain from rate cuts, valuations

Since banking and financial services is a large listed space, it has 55 passively and actively managed funds. The most recent addition is Bandhan Nifty Bank Index Fund

Passive multicap funds: Low cost, broad exposure without fund manager risk

Multi-cap schemes allocate at least 25 per cent each to large, mid, and small-cap stocks, with the remaining 25 per cent invested at the fund manager's discretion

Keep bulk of your portfolio in short- to medium-duration debt funds

The Reserve Bank of India (RBI), too, left the benchmark repo rate unchanged at 6.5 per cent and kept the policy stance unchanged on Thursday

Probable Fed rate cuts, geopolitical tensions add shine to yellow metal

The international market has also seen a dip in gold prices, with a 4.5% correction from recent peaks due to a potential slowdown in seasonal demand

Overlook recent outflows and invest in ELSS if you are in old tax regime

They remain attractive for investors having higher risk appetite and longer horizon

Union Budget 2024 gives salaried individuals some relief on TDS, TCS

The Budget has proposed to cut the rate of TDS to 2% from 5% earlier for rents paid in excess of Rs 50,000 by an individual or an HUF, for a month or part thereof

Union Budget 2024: Indexation benefit removal a realty check for investors

LTCG on non-financial assets like property will also be taxed at 12.5 per cent, against the earlier 20% post indexation if held for more than three years

Seek mid, smallcap exposure but fear volatility? Try multicap funds

According to the latest data from the Association of Mutual Funds in India (Amfi), multi-cap funds received net inflows of Rs 4,708 crore in June 2024, the highest among diversified equity schemes

Conservative hybrid funds can be a better bet than fixed deposits

Asset allocation ensures investor gets small exposure to stocks in a predominantly bond portfolio

Stop revolving credit card dues and replace with lower-cost debt

Personal loan, conversion to EMIs and secured loans are alternatives

Simplify investing: Allocate bulk of core portfolio to broad index fund

These index funds eliminate the complexity of selecting individual schemes. Investors do not have to worry about how much to put into various market caps

Post runup, expect more modest returns from infrastructure funds

Altogether 22 infrastructure schemes manage assets worth Rs 41,912 crore.

Go for money market funds with a large AUM and low expense ratio

MMFs invest in fixed-income instruments maturing in less than one year, minimising interest-rate risk

Business and economic cycle funds: Dynamic style provides the edge

Business cycle funds invest in themes expected to do well over the medium to long term, such as digital businesses, prem­ium­isation of consumption, and urbanisation

Capitalise on secular spending surge with consumption-themed equity fund

Consumption themed funds invest across a diversified range of sectors: FMCG, auto, telecom, consumer durables, healthcare, power, organised retail, and realty

Savvy investors with high risk appetite likely to opt for quant funds

Quant funds use a rule-based approach for portfolio construction based on quantitative models

Special situation funds: Ideal for high-risk investors with long horizon

These funds at times invest in companies going through corporate restructuring, such as mergers, demergers, or buybacks