In February 2021 (for which the latest data is available at the time of writing this story) these funds saw inflows worth ~2,005.8 crore. Let us understand how these funds work and their pros and cons before we decide to invest in them.
The current environment
At present, an economic recovery is underway. At the same time, prices of a wide range of commodities, including crude oil, have shot up. This is leading to higher inflation. Bonds yields are moving up. There is fear that if inflation is very strong, it may force central banks to abandon their pro-growth, accommodative monetary stance. Central banks may then have to hike interest rates to rein in inflation. This would be negative for the equity markets.
Valuations within the Indian equity market are also not inexpensive. That, too, is causing anxiety among investors.
At the same time, a lot of investors are positive about the economic recovery and the expected recovery in corporate earnings. They expect earnings growth to drive the equity markets forward in the future.
Thus, a tug of war is on within the equity markets between the bulls and the bears. There is no certainty about whether the markets will move further up or correct. This is responsible for the volatility we are witnessing periodically.
In such an environment, many investors may like to invest in a type of fund that follows a model-driven approach towards allocating to equities and debt.
How do BAF/DAA funds work?
Denne historien er fra April 2021-utgaven av Investors India.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra April 2021-utgaven av Investors India.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
Microbiome: The Invisible Ecosystem Within us that Safeguards our Health
Imagine being able to heal yourself and build immunity against major diseases without relying on heavy medication. It sounds fantastic, right? Who wouldn’t want that? The key to achieving this lies in a fascinating area of research—our microbiome.
Gold ETFs: Attractive option for retail investors to take exposure to yellow metal
With the equity market experiencing volatility in August, investors are increasingly seeking to diversify their portfolios.
5 Steps to Achieve Your Financial Goals
From a beach house, a Jaguar, to traveling the world – there are many things in life that we want to accomplish.
The Retail Revolution: How India's Stock Market Got a Makeover by the Common Man
In the annals of India’s financial history, the stock market has long been the playground of the big boys—mutual funds, insurance behemoths, and foreign portfolio investors (FPIs).
Strategies to adopt when the markets are at a high (for new and existing MF investors)
An investor must have a plan in place and, more importantly, stick to it regardless of shifting market conditions.
A Collaboration to keep Health FirstPNUT and IDA come together as One!
You reap what you sow! And if you sow health, you will reap a healthier tomorrow. Following the same lines, Personal Nutrition (PNUT) and Indian Dental Association (IDA) have come together as partners to promote complete health and nutrition for each individual! How things unfolded? Let’s explore.
Making a choice between equity and debt mutual funds for long-term goals
Mutual funds are quickly becoming a preferred investment choice for millennials.
ASK THE EXPERT
From last Financial Year, I have shifted to the new Tax Regime.
Flexi-cap Fund Vs Hybrid Fund
Investors in mutual funds can choose from equity, debt, or hybrid funds, each offering different risk and return profiles. Flexi-cap funds provide diversification across market capitalisations, while hybrid funds balance equity and debt for stable returns.
Neuroplasticity: You Can Teach An 'Old' Brain New Skill
A few decades ago, it was believed that the brain’s structure and functions were entirely dependent on genetics, age, and early childhood experiences.
