Over the past few weeks, we’ve received several questions from you on performance of the funds you hold, and what the course of action should be. In both debt and equity, recent returns have given enough cause for worry. So we’re listing out various categories of investments you may holding which are seeing volatility, and what you should do about them.
The COVID-19 outbreak in India is wreaking unforeseen damage on household finances by leading to runaway expenses, interrupted incomes and a heightened risk of job losses. This has served to underline that an emergency or contingency fund should be the starting point of any financial planning exercise. But how large should this contingency fund be and where should it be invested? This crisis offers a few lessons.
In tough times such as this, it is hard to see your investment value dwindling. And when that happens to your debt funds, it is even harder. We’ve had quite a few queries on whether it is safe now to park money in liquid funds and very short duration funds and whether it should be withdrawn.
Several mutual funds that held Yes Bank’s perpetual bonds had to mark a loss, and this is a loss that can’t be recovered, as things stand. In this scenario, we’ve had many questions over the quantum of fund exposure to AT1 bonds. So here are the numbers.
Desperate times call for desperate measures. Therefore, Indian fixed income investors may need to brace for a further plunge in interest rates in the coming months. • With rates cuts likely, lock into the options mentioned here, before March 31, 2020.
Given that the Nifty50 is busy taking out new lows with stunning rapidity, what are the Nifty levels at which the market gets really cheap, or attractive to invest lumpsums in? This strategy note is an attempt to answer this question