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Debt Funds

DEVIL IS IN THE DETAIL

PaSt couple of days, there were lots of WhatsApp forwards on how most of the Credit Scheme redemptions are met by transferring them to other schemes of the same AMC. Some concalls were also made by AMCs to quell these doubts and/or give explanations for the same. All the WhatsApp groups were only abuzz with these stories throughout the day with lot of agitated to and fro among the group members

Arbitrage Funds

Silver Lining During this Extreme Risk Aversion Investment Mindsets of Investors

Investors are wary of investing even in Liquid schemes or Ultra Short-Term Bond funds due to all the various events and circumstances. Many have in fact, redeemed out of these schemes; thereby showing extreme risk aversion to investing. Equity market corrections and COVID issue has also added fuel to fire. In such circumstances, there is one Asset Class which is capable of fulfilling the investment needs and criteria of suck risk averse investors. Ideal for investment horizons upwards of 3 months plus. This Asset Class is Arbitrage Schemes. This fits the bill for all such risk averse Investors.

Mutual Fund View Point

My Take on FT Saga: Winding up of 6 Credit Risk Schemes

This note may sound like I am trying to defend the indefensible. I am only trying to bring in a very different and a dispassionate view to this entire saga and its implications and repercussions. What has happened has already happened; what we can salvage and communicate with our Investors will make all the difference. Otherwise, entire Credit space and with that Debt schemes of entire Mutual Fund Industry will have existential crisis. We will lose faith and confidence of Investors with huge credibility issues going forward. Hence, all I am trying to do is Control the Controllable and not concentrate on what is already done and not in our hands. Those who know me, know that I have always found some positive message in any times of crisis be it JSPL, Amtek Auto fiasco, 2013 Income Fund fiasco or 2019 FMP fiasco due to delay by Essel group.

IFA

Build Mutual Fund Practice only from DAAF Schemes

Advisors can build their entire Mutual Fund practice by embracing only Dynamic Asset Allocation Funds (DAAF) instead of investing in Market Cap Bias schemes like Large Cap, Mid Cap, Small Cap or by investing in Sectoral Funds like Pharma, Infrastructure, etc. Many were not even aware of this category only when Markets turn volatile, bearish, uncertain is the time when talk of this category gets noticed and talked about. Most media – print and television have started highlighting virtues of this Category and become proponents of the same. However, those who follow me, read my articles, attended my lectures or Webinars or seen my Workshop videos are aware of my thoughts on this category since past 8-10 years. I have always treated this category as ALL SEASONS STRATEGY which can work well in any Market conditions and also deliver happy investing experience.

Asset Allocation

A Different Perspective

Today I am going to write about a scheme about which I was skeptical for quite some time. This scheme just does the opposite of what I believe in, which is invest/disinvest based on Market valuations. Those who know me and follow me will be witness to my thought processes of moving away from Traditional Mantras of Buy & Hold, SIP Karo Bhool Jao and Do Not Time the Markets. I have been a great believer and proponent (my own Mantras) of a) Downside Protection and b) be in the right Asset Class at Right Valuations. I have always believed that Investors are like Abhimanyu – stuck in Equity Chakravyuha – not knowing how or when to Exit.

Mutual Fund View Point

Lessons Learnt????? Time to Adopt New Investment Mantras?????

Most experts were predicting S&P Sensex to be above 42500 and NIFTY 50 above 13000 levels by March 2020. With this back ground, let me start my narrative of this article and my own thoughts on where we went wrong, what should have been our role as Advisors, should we have only listened to the Experts and not applied Logic and Common Sense to our Advisory practice and finally should we have continued to believe in the old adages like Buy and Hold, SIP Karo Bhool Jao and Do Not Time the Markets?

Debt Funds

Match Needs with Solutions in Debt Space with Nippon India Mutual Fund Debt Schemes

It has been a turmoil filled 2019-2020 as far as debt markets are concerned. What was 2008-2009 for Equity markets has turned out to be 2018 onwards in Debt market space since IL&FS defaults and downgrades and thereafter many more defaults by well known names like DHFL, Essel Group, Cox & Kings, and many more. How to approach it as a need and a solution click on the article to read more.

Others

Bharat Bond ETF

I am sure by now most readers are aware of what Bharat Bond ETF is and what are its salient features. I have seen and read many notes on the same. Surprisingly, all are repeating the same i.e. what is ETF, how this Product has transparency, liquidity, visibility of returns, tax efficiency etc. However, none have so far highlighted the NEED-SOLUTION approach for Investors to look at and take an investment decision based on that. If we sell this as another debt scheme or a product, there will be less traction; but if we sell this as a NEED and a SOLUTION approach, we will get better Mind Share and Wallet Share of the Investors. Also, I will explain in detail the Concept of Constantly Rolling Down and how does it benefit the Investors.

Others

Investor - Bharat Bond ETF

I am sure by now most readers are aware of what Bharat Bond ETF is and what are its salient features. I have seen and read many notes on the same. Surprisingly, all are repeating the same i.e. what is ETF, how this Product has transparency, liquidity, visibility of returns, tax efficiency etc. However, none have so far highlighted the NEED-SOLUTION approach for Investors to look at and take an investment decision based on that. If you see this as another debt scheme or a product, there will be less traction; but if you see this as a NEED and a SOLUTION approach, you will get better perspective as to why you should look to invest in the scheme . Also, I will explain in detail the Concept of Constantly Rolling Down and how does it benefit the Investors.

Equity Funds

A scheme with superlative performance hidden away from limelight

Generally, you will not see my notes or recommendations on Equity Schemes. But here I am making an exception and writing about one specific Equity scheme from the stable of PPFAS Mutual Fund viz. PPFAS Long Term Equity scheme. While playing golf with Neil Parikh, one of the Founders of the Fund House, we got to talking about his Scheme performance and philosophy of investment. That conversation intrigued me and on my return to my office, I started doing my own bit of analysis of the said scheme on different parameters. What came to light was nothing short of pleasant shock and surprise. I tried analyzing this scheme from all conceivable angles to find some weakness, some faults, some negative surprises. From all angles I was left disappointed that nothing untoward or negative came out of my research (actually I was happy that this scheme passed all my filters and tests).

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