Even as investors gave in to doomsday predictions, governments and central banks around the world took quick action. They undertook both fiscal and monetary measures, which injected liquidity into the system, and enabled a faster-than-expected turnaround of both economies and the markets. As a result, the Sensex is now up again to 46,006, with a year-to-date return of 11.5 per cent (as on December 22, 2020).
Be prepared for volatility:
One key lesson for equity investors is that the cycle of market decline and revival is likely to be shorter in the future than in the past on account of prompt action by the central banks and governments. Investors should avoid giving in to pessimism when the markets decline. If their goal is several years away, they should continue with their systematic investment plans (SIPs) in equity mutual funds.
Avoid timing the markets: There is a tendency among equity investors to try and time the markets. When they are down in the dumps, as they were in March-April, investors want to exit because they are disappointed with the performance of equities. They believe they should exit when the markets are down and re-enter once they start moving up again. This urge should be avoided. It is better to stay invested when the markets are down. Market revivals are usually sharp and is concentrated within a few days. If you were out of the markets on those crucial days, your portfolio return will lag behind that of the markets.
In December, the markets began scaling new highs and valuations rose. Now, many investors want to exit the equity markets because they believe that the markets have become over-valued. Many also believe a correction is imminent.
Once again, it is better to stay invested. Continue with your systematic investment plans (SIPs). Doing so will help you average out your cost of purchase of units over time. This is a better way of dealing with market volatility, rather than trying to time your entry or exit from the markets.
Continue reading your story on the app
Continue reading your story in the magazine
When should you exit a fund?
When you invest in an actively-managed fund, you must not fall in love with it as circumstances diarise that force you to part ways with it. It is quite possible that a fund you chose for its stellar past performance may underperform in the future, forcing you to exit it. Sometimes, the fund’s performance may be as expected it, but you may need to sell because your needs have changed. The fund manager who was at the helm may have moved to another fund house. The fund’s asset under management (AUM) may have swelled, affecting performance.
Want to live longer? Turn vegetarian...says the British Medical Association
Nothing will benefit human health and increase chances of survival for life on earth as much as the evolution to a vegetarian diet.” - Albert Einstein, Physicist, Nobel Prize Winner
Selecting the right ELSS for saving tax and meeting long term goals: Know the factors
The new financial year 2021-22 has begun and it is time to plan your tax liability for the year. Government allows taxpayers to invest in certain specified investments and reduce tax liability for the year.
MUTUAL FUND NEWS
01 SEBI has issued guidelines for change in reporting format
Life-cycle and other investment strategies in ULIPS: Know them before you buy for long term goals
The stock market provides an access to participate in the growth potential of equity asset. But, investing directly in stocks may not be everybody’s cup of tea. As a retail individual, it is better to invest through equity-oriented investments and reap the benefits over the long term. And, for those who wish to keep their saving and protection need in a single place, the unit-linked insurance plans fit the bill. Unit-linked insurance plan (Ulip), an insurance product that bundles protection and savings has undergone several structural changes and is a revamped product in its new avatar. Unlike in the past, where premiums could have been discontinued after a certain period say 3 or 5 years, the current version requires premiums to be paid till maturity, unless you choose a limited premium payment period.
01 NPS as a preferred retirement product registered 18% growth in the customer base during pandemic
Critical Illness Health Insurance: Your second layer of protection after buying medical cover
Coronavirus pandemic and the spread of infection is in full swing across the nation. While vaccination, wearing of masks and maintaining social distancing remains the best defense against it, the probability of getting infected cannot be ruled out. While the medical infrastructure and the treatment of Covid-19 will have their role to play, what impact does the infection on our other body organs have over the medium to long term remains to be seen. As an individual, make sure you are adequately prepared to protect your savings and life amidst the pandemic.
Coming out stronger from a second wave
We have just completed a financial year that is difficult to describe in a single word. “Unprecedented“possibly does not capture the wide range of emotions, like anxiety, depression, sense of relief etc. that we went through as a society. Just as we thought that COVID was being relegated to history, it has reared it’s ugly head in the form of a second wave.
Ask the Expert
Q Dear Sir, I shall be retiring in couple of months. I am expecting my retirement funds to be around Rs.2 crores. Can I get monthly returns upto Rs.1.5 Lakhs from these funds. Please give some suggestions. -Mr.Raghubir Prasad, Noida
5 Key Regulatory Changes In NPS Scheme You May Hear Soon!!!
Being the key product in retirement planning and the rising popularity of NPS among individuals and corporates, PFRDA has made announcement of 5 key changes it is willing to introduce soon in NPS.
Investing In Target-Date Debt Funds
Target-date funds or target-maturity funds are like index funds or exchange-traded funds (ETFs) and have been structured in a way that will help you grow assets optimised for a specific timeframe. These funds seek to address investors’ capital requirement at a future date. The report provides further insights
Piramal Wins the DHFL Battle
The home finance company is key to his future plans in the financial sector, but the billionaire entrepreneur may have to wait longer to actually take over the troubled lender.
Inside The DHFL Deal
Brand familiarity and better relations with bankers and stakeholders tilted the balance in favour of Ajay Piramal, and against Oaktree Capital
डीएचएफएल पर फंसेगा कानूनी पेच!
• ओकट्री के अनुसार कर्जदाता उसके 2,700 करोड़ अधिक रकम वाले प्रस्ताव पर नहीं कर रहे विचार • कंपनी के अनुसार उचित बाजार मूल्य के लिहाज से उसका प्रस्ताव 4,500 करोड़ रुपये अधिक है • डीएचएफएल के बीमा उद्यम में ओकट्री को नहीं मिलेगी हिस्सेदारी लेने की अनुमति
Hungry For Stressed Assets
Private equity and stressed asset funds continue to show interest in acquiring value assets undergoing insolvency proceedings despite delays and litigation
डीएचएफएल की रिटेल बुक के लिए पीरामल ने प्रस्ताव में किया बदलाव
पिछले शुक्रवार को पीरामल समूह ने अदार्ण के संशोधित प्रस्ताव के संबंध में आपत्ति जताते हुए डीएचएफएल की सीओसी को पत्र भेजा था।
डीएचएफएल पर पीरामल-अदाणी में रार
संकट ग्रस्त दीवान हाउसिंग फाइनेंस (डीएचएफएल) के संपूर्ण अधिग्रहण के लिए अंतिम समय में अदाणी समूह द्वारा बोली लगाए जाने से पीरामल समूह नाराज हो गया है। उसने चेतावनी दी है कि अगर अदाणी की बोली को स्वीकार किया जाता है तो वह अधिग्रहण की दौड़ से बाहर निकल जाएगा।
मौजूदा पेशकश से बैंक नाखुश
आकर्षक बोली चाहते हैं डीएचएफएल के ऋणदाता, मौजूदा बोलीदाताओं को देंगे मौका
डीएचएफएल का एक और फर्जीवाड़ा
बैंक को चपत लगाने वालों में एक नया नाम और जुड़ गया है और वह है- दीवान हाउसिंग फाइनेंस लिमिटेड (डीएचएफएल). दरअसल, कई घोटालों के दलदल में फंसी डीएचएफएल ने पंजाब नेशनल बैंक को करीब 3,690 करोड़ रुपये का चूना लगा दिया है. इसके पहले नीरव मोदी और उसके मामा मेहुल चौकसी ने बैंक को करीब 15,000 करोड़ रुपये का चूना लगाया था. इस बात का पता तब चला जब पंजाब नेशनल बैंक की ओर से स्टॉक एक्सचेंज को इस बारे में जानकारी उपलब्ध कराई गई.
In Debt Funds, Be Alert About The Warning Signs!
With the fall in overall interest rate, we have seen a decline in rate of interest offered to various small saving schemes by the government. This will impact investors who depend on such schemes as part of their retirement plan or to meet certain financial goals