PERSPECTIVES
Capitulation of the small cap investor
If you still believe that this is just a blip in the greatest bull market, or should I say, “the mother of all bull markets” you are most certainly delusional. If you have made losses, take it in your stride. Consider it as tuition fees the market takes from you for learning valuable lessons.
STOCK INVESTING
4 rules of successful stock picking
On Dalal Street, the industries, personalities and names change. But certain basic stock picking principles are persistent through changing times. Here are four basic tenets to keep in mind when navigating the manic twists of the market.
LEARN FROM THE MASTERS
Lessons from a momentum fund manager
Tsai was a famed practitioner of what later came to be named "momentum investing". He would buy stocks with positive price and earnings trends and sell when the momentum displayed signs of subsiding. In fact, he has often been credited with pioneering the use of momentum investing in money management.
MUTUAL FUNDS
These Franklin Templeton funds need to improve their performance
Franklin India Equity Advantage and Franklin India Taxshield are both managed by Lakshmikanth Reddy and each have been assigned a Bronze rating. Though performance needs to improve in both funds, we believe that this fund house ranks among the best asset managers in the country. The team is experienced and stable and follows a research-driven investment approach with a focus on reasonably valued stocks.
FIXED INCOME INVESTING
Is it time to invest in corporate bonds?
Santosh Kamath (Franklin Templeton Mutual Fund), Suyash Choudhary (IDFC Mutual Fund) and Dhawal Dalal (Edelweiss Mutual Fund) share their views.
A Credit Risk fund will invest a minimum of 65% of its assets in corporate bonds. While a Corporate Bond fund will invest a minimum of 80% of its assets in corporate bonds. The Corporate Bond fund will balance its risk by investing only in the highest rated instruments (AAA). On the other hand, the Credit Risk fund will invest a lower portion in corporate bonds but will do so in those which are not the highest rated (AA or lower).
INTERVIEW
Best small/mid-cap fund
SBI Small and Midcap Fund bagged the Morningstar Fund Award 2018 in Best Small/Mid-Cap Equity Fund category, beating L&T Midcap and Mirae Asset Emerging Bluechip. R Srinivasan discusses what made SBI Small & Midcap Fund a winner.
MUTUAL FUNDS
4 good equity funds from HDFC Mutual Fund
Our analyst looks at HDFC Top 200, HDFC Equity, HDFC Growth and HDFC Mid-Cap Opportunities. The funds are managed by Prashant Jain, Chirag Setalvad and Srinivas Rao Ravuri. They all bag a Gold while HDFC Growth gets a Silver.
PERSPECTIVES
Should you be concerned about the change in ownership at DSP BlackRock?
The concern being the change in ownership at DSP BlackRock Asset Management. Would it impact the investment process of the AMC now that BlackRock, the world’s largest asset manager, is pulling out? We look at two aspects; the team and the AMC.
ASK MORNINGSTAR
Clearing the confusion between HDFC Balanced and HDFC Balanced Advantage
Our fund analysts answer the queries of two readers with regards to the above funds. HDFC Premier Multicap Fund has been merged with HDFC Balanced Fund and the entity thus formed is named as HDFC Hybrid Equity Fund. HDFC Balanced Advantage is an amalgamation of HDFC Growth and HDFC Prudence and it has been categorized under Balanced Advantage category.
FUND MANAGER PERSPECTIVES
Why Prashant Jain's funds could be in for a bumpy ride
In February, when Morningstar reiterated its Gold analyst rating to HDFC Top 200 and HDFC Equity, a reader wrote in rather perturbed citing NPAs. We look at that argument and explain why the funds get that rating despite a rocky ride ahead.
