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Core-and-Satellite investing: Follow this mutual fund strategy during volatile markets

Updated Jul 23, 2021 | 07:12 IST Wealth managers say the core part of the portfolio should have large-cap companies as in a better position to weather any downturn in the economy compared to smaller companies. Representational image  Key Highlights Core-and-Satellite investing, which involves holding a low-cost passive fund as the key part of the portfolio and various actively-managed schemes that will help spread out risks. The aim of the strategy is to achieve higher returns with lower risks. The low costs of passive funds like ETFs and index funds improve portfolio performances automatically compared to active schemes with higher expenses. New Delhi: As most of the largecap mutual funds, that usually hold a concentrated portfolio, underperformed their benchmark over the last couple of years, investors are now exploring options to keep their holdings well-diversified without losing the edge. One such strategy that wealth managers are recommending

Bank stocks: Bold bets on banking could pay off, feel fund managers

Synopsis Fund managers are bullish on the large private sector banks, such as HDFC Bank, ICICI Bank, Axis and Kotak. They believe their strong management teams will be able to manage the second wave of Covid-19. Many BFSI funds have concentrated portfolios and these stocks account for nearly half of the scheme. Agencies Despite slow credit growth, the top private banks HDFC Bank, ICICI Bank and Axis Bank have reported credit growth of 2-3x of the industry during FY21 at NPA levels that continue to be similar to those of last year. Mumbai: The data set is decidedly mixed, and the odds don’t appear too bright at least on paper. But analysts still believe BFSI must be in your portfolio and not simply because it makes up the biggest chunk of the broadest indices of India.

IndiGrid NCD issue opens; chance to lock-in 8 2% yield on safest paper

IndiGrid NCD issue opens; chance to lock in 8.2% yield on safest paper SECTIONS Share Getty Images Related NEW DELHI: The public issue of non-convertible debt (NCD) securities by IndiGrid, an infrastructure investment trust that owns a number of assets in the power sector, opened for subscription on Wednesday. The NCD promises up to 8.2 per cent interest per annum, a considerably high yield on a paper with highest rating in a low interest rate environment. This issue has been rated AAA/Stable by Crisil and ‘AAA/Stable’ by India Ratings. The securities will be allocated on a first come-first served basis. QIBs and NIIs will be allocated 10 per cent each of the total issue size and HNIs and retail investors will be allocated 40 per cent each.

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