After Urjit Patel's appointment as RBI governor-designate, the bond market witnessed a sell-off, as it became evident that there won't be any significant change in stance

Income fund investors need to tread carefully

Business Standard

Equity markets have been testing the resolve of both seasoned as well as new investors over the last year or so. While volatility in the stock market is a natural phenomenon, many investors jeopardise their financial future by focusing on short-term catastrophes.

Volatility should not affect your financial future

The Securities and Exchange Board of India&rsquo;s (Sebi) new guidelines for mutual funds became effective from October 1. These guidelines have triggered a flurry of activities as all the stakeholders are busy understanding and implementing them. With the news that a number of schemes have stopped accepting subscription/SIP registration (fresh as well as existing SIP), there are apprehensions being expressed by certain quarters.

Transparent, but more expensive

One of the biggest advantages of mutual funds (MFs) is their simplicity. Also, being transparent, well-regulated, tax-efficient and varied makes them an ideal investment option for investors. However, considering there are hundreds of schemes one can invest in, making the right investment decision is anything but easy.

Don't panic when faced with tricky situations

Investment success requires planning and perseverance. Unfortunately, many of us either do not plan or abandon long-term investments when faced with short-term adversities of the market. Besides, it is also common to see investors investing haphazardly to save on taxes at the fag end of the financial year.

Plan for the new financial year

It is a known fact that equity investments require time commitment. Besides, a disciplined approach to investing goes a long way in tackling the volatility in the stock market. However, to ensure success on a consistent basis, you would be required to do much more than be patient and disciplined. Different stages of your investment horizon would require you to constantly refine or rejig your investment strategy.

Discipline alone is not enough for an investor

Gold has been performing well over the last 10 years. But, many investors are facing the dilemma of whether or not to invest in it at the current levels. Gold&rsquo;s subdued performance over the past six months has also raised doubts in their minds about its potential.

Gold has a role to play in your portfolio

Over the years, the Systematic Investment Plan (SIP) has emerged as a popular mechanism for investors in equity funds. This is not surprising, since a disciplined approach allows investors to limit their downside and reduce the variance on their returns. Also, by investing a fixed amount at a set interval, regardless of market conditions, investors can remove emotions from the decision-making process.

SIP the right way

In today&rsquo;s uncertain markets, diversification is key to achieving investment success. It is proven that diversification not only reduces risk in your portfolio, but also allows it to perform under different market conditions.

Managing diversification in a portfolio

Another Union Budget has come and gone. Budget 2012-13, expected to be a make or break one for the UPA government, turned out to be lacklustre. Some reforms, such as the Direct Taxes Code (DTC) and introduction of an integrated goods and services tax, remain on the backburner.

What's in it for you?  

Despite being one of the most versatile investment options for investors with varied risk profile, time horizon, needs and goals, mutual funds (MFs) have not been able earn their rightful place in the investment universe. While every investor hopes all the funds in his portfolio to do well at all times, in reality, the performance of some may slip for different reasons. Apart from a natural phenomenon called volatility, the portfolio performance may also get adversely impacted by wrong selection of funds, ignoring non-performance, redeeming funds in a hurry and following illogical strategies.

Hemant Rustagi

Hemant Rustagi

Hemant Rustagi

Income fund investors need to tread carefully

Volatility should not affect your financial future

Transparent, but more expensive

Don't panic when faced with tricky situations

Plan for the new financial year

Discipline alone is not enough for an investor

Gold has a role to play in your portfolio

SIP the right way

Managing diversification in a portfolio

What's in it for you?

Cues for successful MF investing