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Sarbajeet K Sen is a senior journalist and freelance writer with over 30 years of experience. He writes on personal finance. He has worked with Moneycontrol.com, Financialexpress.com, and Money Today.
Sarbajeet K Sen is a senior journalist and freelance writer with over 30 years of experience. He writes on personal finance. He has worked with Moneycontrol.com, Financialexpress.com, and Money Today.
Potential rate cuts in the US this year could boost gold's performance
Go for the flexibility of dynamic bond funds if you are unsure about direction of rates
The medium- to high-maturity variety of these funds can also offer capital gains if interest rates fall
Diversifying investments through multi-asset funds can be another smart investment move
Both return and tax treatment can vary widely based on each fund's asset allocation mandate
Stick to asset allocation, avoid wholesale portfolio changes
Yields from these schemes are attractive currently, but could come down if rate cuts happen
Even when investing solely for capital gains, stay flexible and extend investment horizon if required
Rebalance by booking profits in mid and smallcaps, allocate to fixed income
Book profits in mid- and small-cap segments, allocate money to fixed income and gold
Book profit if you have become overweight after the recent run-up
But, these funds can lose money during severe market corrections
Investors must, however, be prepared for greater volatility in white metal
Take moderate exposure to these funds, given the potential for defaults and downgrades in their lower-rated portfolios
Consider going for a passive fund
Buy jewellery for consumption; it is inefficient for investment purposes
Investors overweight on small- and mid-cap funds may consider booking profits there and allocating to these funds
There could be losses if interest rates rise or rupee appreciates
Remember these funds have a limited track record currently; they will also not receive equity tax treatment
If you are unsure about where rates are headed over the next year, go for dynamic bond funds