Strategies Archives - Page 4 of 6

Mutual funds & ETFs

5 reasons to avoid PSU ETFs

The list of top performing equity funds for the past year features a couple of unusual entries. With a return of 18-21 per cent, CPSE ETF (managed by Nippon India Mutual Fund for the government of India) and the Bharat 22 ETF (managed by ICICI Prudential Mutual Fund) are top rankers among equity funds.
This has many investors asking if they should add these passive funds to their portfolio. The portfolios of CPSE and Bharat 22 ETFs are made up of the PSU oil, energy and financial giants which are the flavour of the season. These ETFs’ costs are ultra-low because they are used as divestment vehicles. Both ETFs would also seem to be ‘value buys’ if you go by their ultra-cheap valuations. The CPSE ETF trades at a portfolio PE of 7 times and Bharat 22 ETF at about 11 times. This is a fraction of the current Nifty50 PE at over 21 times.
But does this make them worth betting on? There are five good reasons for long-term stock investors to steer clear of these ETFs.

Aarati Krishnan January 17, 2023 5 Comments

Quarterly review: Prime Portfolios performance review & quarter changes

Mutual funds & ETFs

Quarterly Review: Prime Portfolios performance review & quarter changes

Prime Portfolios are a set of 19 unique portfolios that meet over 30 different investor timeframes and needs. Prime Portfolios are listed under Ready-to-use-portfolios in the Recommendations dropdown. These portfolios primarily use mutual funds, but where there are better-suited products such as deposits or government schemes, the portfolios include those as well.

We review these portfolios every quarter and make changes to remove underperformers or to include any new investment opportunity or product that may come by. At the end of each year, we review the performance of key portfolios, in addition to discussing the changes we make.

PrimeInvestor Research Team January 5, 2023 2 Comments

Quarterly review - Changes to recommendations in Prime Funds and Prime ETFs

Mutual funds & ETFs

Quarterly review: Changes to recommendations in Prime Funds & Prime ETFs

Prime Funds is our list of recommendations in equity, debt, and hybrid mutual funds that are worth investing in. Prime Funds narrows down your choices from the thousands of funds that there are, into a concise list of funds that span different styles. Prime Funds are selected based on performance, portfolios, and investment strategies.

In this quarter’s review, we have added to equity funds to play themes that are ripe and made changes to the hybrid recommendations to include better return options. We have made minimal changes to our debt fund recommendations.

PrimeInvestor Research Team January 3, 2023 24 Comments

Strategies

Debt fund strategies for the current rate scenario

The Reserve Bank’s monetary policy on Wednesday served up another repo rate hike of 35 basis points, adding to the 190 basis points through this year. That takes the repo rate to 6.25% from the Covid low of 4%. The key driving factor behind the rapid rate hikes – that of inflation – still remains. The RBI has clearly spelt its commitment to bringing inflation within the target range, even in its latest monetary policy.
In this light, debt fund strategies you have now, to make the most of the current scenario, can be decided based on what you want:

Bhavana Acharya December 8, 2022 30 Comments

Use this passive fund for your large-and-midcap exposure

Recommendations

Use this passive fund for your large-and-midcap exposure

A few weeks ago, we had written in detail the categories in which we think passive funds have become a necessity to keep your portfolio returns stable; even if you hold active funds. We made this call as performance of active funds were becoming relatively more inconsistent, in a few key categories.

Bhavana Acharya November 20, 2022 18 Comments

Is it time to add passive funds to your portfolio?

Strategies

Is it time to add passive funds to your portfolio?

In any portfolio that features equity funds, the long-running debate is whether one should go for active or passive funds. We, on the other hand, have held that a portfolio can well feature both active and passive funds using each where it does best. Of late, we have also been of the opinion that there are some categories where you should have passive funds if you are to keep returns up – even if you hold outperforming active funds.

Bhavana Acharya November 1, 2022 14 Comments

How to identify mutual fund overlap in your portfolio

Strategies

How to identify mutual fund overlap in your portfolio

A few weeks ago, we’d launched a new tool on our platform – the mutual fund overlap tool. This tool shows you how much two funds or three funds have in common between them. But how exactly should you use this overlap information? When is overlap high? What should you do if your funds share a high overlap? Or why is overlap even important?

Bhavana Acharya October 10, 2022 22 Comments

Corporate bond funds, gilt funds and credit risk funds – which to own and when?

Strategies

Corporate bond funds, gilt funds and credit risk funds – which to own and when?

When it comes to building long-term portfolios with debt, many of you are confused about which funds to use. Should it be corporate bond funds or gilt funds or credit risk funds? To choose these or a combination of these, you need to first know the difference in the characteristics of these fund categories.

Vidya Bala September 20, 2022 7 Comments

International funds – what are your options now?

Strategies

International funds – what are your options now?

Funds investing internationally were the flavour of the season all of last year. That changed in February this year, when funds hit the ceiling set by the Reserve Bank on how much they could invest in overseas securities. When we first explained the scenario, expectations were that this cap would be increased in due course and international funds could open up again.

Bhavana Acharya September 13, 2022 26 Comments

When to use multi-asset allocation funds

Research Reports

When to use multi-asset allocation funds

Multi-asset allocation, by itself, is part of any portfolio building strategy. Both your portfolio’s return potential and its ability to contain downsides is determined by the asset allocation you choose. To this extent AMCS are trying to provide an all-in-one solution through a hybrid category of mutual funds called multi-asset allocation funds.

Vidya Bala August 28, 2022 6 Comments

Prime Recommendation: Play the economic growth with this ETF

Recommendations

Prime Recommendation: Play the economic growth with this ETF

As India’s economic activity picks up pace after being in deep freeze during Covid, investors have been hunting for sectors that can ride this recovery.

Aarati Krishnan August 11, 2022 23 Comments

Prime Review: 3 passive indices built on ‘Quality’

Strategies

Prime Review: 3 passive indices built on ‘Quality’

In this analysis, we look at indices on the ‘Quality’ factor. There are two NFOs running now – DSP Midcap 150 Quality 50 Index fund (there’s already the ETF version of this) and Aditya Birla SL Nifty 200 Quality 30. These two indices join the Nifty 100 Quality 30 index, on which there is an already existing ETF (from Edelweiss).

Bhavana Acharya July 28, 2022 10 Comments

PrimeInvestor - Articles and Reports

5 reasons to avoid PSU ETFs

Quarterly Review: Prime Portfolios performance review & quarter changes

Quarterly review: Changes to recommendations in Prime Funds & Prime ETFs

Debt fund strategies for the current rate scenario

Use this passive fund for your large-and-midcap exposure

Is it time to add passive funds to your portfolio?

How to identify mutual fund overlap in your portfolio

Corporate bond funds, gilt funds and credit risk funds – which to own and when?

International funds – what are your options now?

When to use multi-asset allocation funds

Prime Recommendation: Play the economic growth with this ETF

Prime Review: 3 passive indices built on ‘Quality’

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