Where to manage your investment funds?

moneyguide

Where to manage your investment funds?
Where to manage your investment funds?

Where to manage your investment funds?

MONEY MATTERS

CHOOSE YOUR ASSET allocation to ensure winning strategy while investing. 

Although investors continued with their systematic Investment Plans (SIP), the outcomes varied. Investors who stuck to large-cap funds managed to float with relatively lower return compared to the previous year. Here are three questions answered to ensure you invest strategically:


Should you continue your SIPs? Small and mid-cap funds come with high risk and one should invest in these schemes if one can stomach high volatility. If you wish to avoid taking too much risk, you can allocate a bit more to large-cap funds. Moreover, the regulatory landscape has evolved an investment product to make it more investor-friendly and transparent. SEBI introduced new norms on the total expense ratio of funds. In the new avatar, the equity funds can charge a maximum 2.25 percent towards expenses whereas other schemes can charge up to two percent.
Is the falling interest rates-an opportunity t seize? Low-interest rates offer an opportunity for those who seek some sort of a regular or fixed income. The expectation of low inflation should ensure that the interest rates go down from here. Investors should stay with short-term bond funds, as government securities funds and long-term bond funds have already moved on the back of a sharp fall in the bond yields in recent past. If capital protection is important. opt for fixed maturity plans and traditional avenues such as fixed deposits and small saving schemes at current yields.


Will gold finally glitter? Though the stock and bond investors have their own reasons to frown at their investments, the surprise in the pack was gold. Investors in gold benefitted in 2018, however, the prices have been volatile for the first quarter of 2019. Despite a temporary truce in trade wars, the threat of trade wars has not disappeared. Gold, as an asset class, does well in tough times.

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