With the equity market having risen sharply over the past year, there is growing interest among investors in diversifying their portfolios. Multi-asset allocation funds, which enable investors to do so, are the flavour of the season. However, these funds come in many varieties. While some are equity-heavy, others are debt-oriented. They differ from one another in the level of diversification they offer and the tax treatment they get. This week’s lead story by Bindisha Sarang goes into the intricacies of how to choose the right fund from this category.
The second article by Namrata Kohli focuses on the growing interest in India’s beach destinations. Read it for insights on the potential of these locations vis-a-vis global destinations and tips on best travel practices.
Corporate fixed deposits offer investors a higher interest rate than traditional bank fixed deposits. Look up the table from Paisabazaar.com to zero in on the credit risk level and tenure that suit your financial needs.
Flexicap funds, also known as ‘go-anywhere’ funds, allow their fund managers complete flexibility regarding where to invest. If you wish to hand over the responsibility for deciding market cap weight and selecting securities to a fund manager, go for a fund from this category. Look up Morningstar’s review of Franklin India Flexicap Fund.
Number of the week
4.7 million: New demat accounts added in January
The broking industry added 4.7 million new demat accounts in January, surpassing the previous record of 4.1 million in the preceding month.
A major rally took place before the Interim Budget fuelled by hopes of the present government continuing. Both the secondary and primary markets remain buoyant. The key indices hit record highs in January and over two dozen initial public offerings (IPOs) hit the market on the main exchanges and the SME platform.
Investors entering the equity market must choose their broker carefully. Go with a broker that complies with regulations and has a clean track record. It should also have navigated several market cycles ethically and transparently. The broker must have a reputation for high-quality customer support.
The quality of the platform also matters a lot. It should be easy to navigate and must have a track record for robustness. The broker should also have a good balance sheet to support growth in the scale of its operations.