At times it can be very important for investors to get the units allotted on the same day as the payment is made i.e., get the same day s NAV. For example, those investing in ELSS schemes on the last day of the tax-saving season, i.e., on March 31.
Try these thought experiments to test your financial fitness
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Last Updated: May 09, 2021, 04:15 PM IST
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Synopsis
Mutual fund data shows a higher allocation happens in funds that have the best last one-year performance. What do you think these investors are doing? Chasing recent outcomes or process?
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By Amit Grover
How Einstein solved difficult problems? He used thought experiments. It’s a tool that uses impossible situations, creates hypnotical scenarios, and tries to think and find solutions. A lot of great thinkers use this method. The purpose of thought experiments is to think wild, push us outside our comfort zone and force us to think about answers which we usually try to avoid.
SEBI Caps Mutual Fund Investments in Perpetual Bonds; Issues New Valuation Norms moneylife.in - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from moneylife.in Daily Mail and Mail on Sunday newspapers.
The Securities and Exchange Board of India (Sebi) on Wednesday issued curbs on mutual fund (MF) investments in debt instruments with special features such as additional tier-I (AT1) bonds. In a circular, the markets regulator said no MF shall, under all its schemes, own more than 10 per cent of AT1 bonds issued by a single issuer. Further, at the scheme level, the exposure to such instruments shall be less than 10 per cent of the total assets and less than 5 per cent towards a single issuer. The restrictions will apply to all debt instruments that have special features such as subordination-to-equity and convertible-to-equity upon the trigger of a pre-specified event for loss absorption.