As some categories of active funds in India such as large-cap funds, have struggled to beat the sprinting Nifty50 and Sensex30 in the last couple of years, there’s a surge of interest in index investing.
But are there risks in index investing that investors are ignoring? Read on to find out.
Recent developments in the telecom space holds the risk of pushing Vodafone’s debt instruments to junk/default status and a consequent erosion to NAVs of funds that hold the instrument. We tell you what funds are affected, and we recommend an exit on funds that have a significant holding in the instrument and suggest alternatives.
Most of us buy insurance to make sure that our finances, or those of our dependants, are protected from fate’s sudden googlies. But what if the insurance company you’re relying on is in a shaky financial situation? This risk is not an outlandish one in India.
Recently, IRDA (Insurance Regulatory and Development Authority) asked Reliance Health Insurance Company to stop selling new health policies and to transfer its older policies to Reliance General Insurance Company, after finding that it was unable to maintain its solvency margins at statutory levels. In June 2017, IRDA had ordered Sahara Life Insurance to stop issuing new life policies and had directed its takeover by ICICI Prudential Life Insurance. The order was later overturned by SAT.
If you’re looking to buy a life or a general insurance policy, it is best to vet your insurer before signing up to avoid such uncertainties. What are the checks you can run to ensure that your insurer is in it for the long haul?
Performance data is clearly showing a declining trend for large-cap funds. Further, data and index behaviour shows that large-cap equity funds will continue to struggle to beat their benchmark convincingly. Selectively picking large-cap stocks directly or a passive strategy of holding large-cap index funds may become necessary
The financial services marketplace is getting reshaped by three forces – a push to financialization, increasingly complex products, and digitization leading to the emergence of self-serve customers
Consequently, there is a need for providing cost-effective research and guidance to a new class of consumers
PrimeInvestor with its totally independent setup and a remarkable team, seeks to do that as a subscription-based, product-first, digital-channel service.
It’s a unique service – so, need a lot of feedback, and a lot of support 🙂
SIP returns are seemingly not up to par in the past several months. Are you better off investing lump sums instead? Not necessarily. To know
Cost inflation index benefit makes the post-tax return of debt funds far superior to fixed deposits. Please note that debt fund taxation has undergone a
NRIs who approach us for investment options broadly fall under the following categories: one, those who are abroad on an assignment and will come back. Two, those who are settled abroad and do not plan to come back. Three, those who are abroad, have no immediate plans to come back but ‘may’ decide to come back at some point.
Debt mutual funds are claiming the headlines with alarming regularity ever since IL&FS defaulted on its debt payments in September 2018. All this has brought to light certain truths about debt funds, which you should know before investing.
Most of us want to save taxes but end up making poor decisions on your investments while you do so. A few simple tips will ensure you don’t have to compromise on investing well, to save taxes.
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