Conventional wisdom has it that it is foolish to invest in a new fund offer (NFO). Is this applicable to index fund NFOs as well? I am planning a lump sum investment in Benchmark S&P CNX 500 Fund.
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Buoyed by significant growth in debt funds, the mutual fund industrys total asset under management (AUM) in January rose 9.4 per cent, the highest monthly growth in 15 months.
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Mutual fund houses were net sellers in February. However, they were bullish on some select stocks in the month. Market heavyweights such as HDFC, Reliance Industries (RIL), Larsen and Toubro (L&T) and Infosys were their favourites during the month.
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If you want to invest in gold, gold ETFs are a better option than physical gold. Gold ETFs are held in a demat account. This saves the investor from the hassle of storage and security.
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Besides gold, gilt is the other category of funds that has caught the investors fancy in the recent past. While gold grabbed attention being a safe haven, gilt funds reasons for coming into the limelight was the sudden resurgence in performance. In 2008, when equity was coping with negative returns, gilt funds were able to deliver a return of 25.33 per cent.
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Over the last couple of months, a lot of debt mutual funds have shifted their assets into short-term money market instruments. The reason: they want to be ready to meet redemption pressures in the last quarter of this financial year.
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I want to invest Rs 4,000 every month in two equity diversified schemes for a 5-year time horizon. I have selected DSPBR Top 100 Equity and Reliance Growth.
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When stock market tanked, two funds shot to the limelightUTI Dividend Yield and Birla Sun Life Dividend Yield Plus. The funds not only managed the market turbulence better than their peers but also outperformed other diversified equity funds.
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Trade volumes in the secondary market rose as mutual funds preferred to remain cautious and deploy limited funds in the shorter tenure papers, dealers said.
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After facing trouble for four months, the mutual fund industry seems to be limping back to life. The industrys February-end average assets under management (AAUM) are back to slightly-over Rs 5 lakh crore, bringing it close to September-end figures of Rs 5.3 lakh crores, according to data from Amfi.
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Mutual funds (MFs) have lost a huge amount of asset value in the 12 months ending December 31, 2008. And, this loss is not because of redemptions, but due to the fall in the market value of their equity holding.
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Its not just investors, even fund managers believe that cash is king. Equity and hybrid funds cash holdings hit Rs 9,729 crore, or 11.46 per cent of their average assets under management (AAUM) of Rs 84,908 crore, at the end of January. This is the highest in the last one year.
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The market for Shariah funds is set to grow with Benchmark Mutual Fund launching the first-ever Shariah Benchmark Exchange-traded scheme in India. Its an open-ended listed index scheme.
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I fall in the highest tax bracket and feel that debt funds are better for me than fixed deposits. I want to invest in debt funds for the long-term through SIPs, and will be happy with 9-10 per cent returns.
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The highest alpha generator in the category, its returns have impressed. Though launched in August 2005, it emerged as a strong contender only since 2007, when its back-to-back annual performance put it ahead of its peers.
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