Can SEBI’s new risk meter help MF investors make better choices?

Is an equity fund riskier than a debt scheme? Conventional wisdom would say an equity fund is riskier than a debt scheme. But what happens if your debt fund takes considerable credit risks and your equity scheme is a relatively safer large-cap index fund? From the events of the past two years, we now know that the former can get quite risky, even lethal. That’s the anomaly that SEBI’s latest revised product labeling –…

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Sectors to benefit in a post-COVID economy

How did you rejig your portfolio in the recent market crash of March 2020?  When the market corrected in March 2020, we were invested in very high-quality franchises. The correction did not impact us so much. We were confident that most of these businesses will bounce back. We had done a detailed analysis on identifying businesses which could bounce back in 12 months. We created a list of companies which fall in this bucket. …

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Macroeconomic Dashboard

Macroeconomic Dashboard Key Points:       The overall banking credit growth continue to be anemic and the retail growth has yet to pick up. Despite lower deposit rates, deposit growth at ~12%YoY was the highest since May 2017, and as a result, system loan to deposit ratio plunged to 71.8% vs long period average of 74.3%.    September Manufacturing PMI accelerated to 56.8 vs 52.0 in August to reach the highest in over eight…

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Market View -October 2020

Return of volatility characterised global financial markets in the month of September as the near vertical uptrend off March lows got tested. This was in line with our view that while things had materially improved, we were not quite as much in the clear as financial markets had appeared to suggest. Especially risks around global politics, geopolitics and the enduring impacts of the Covid-19 crisis were being ignored. With a sharp intra-month upmove off…

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