In the earlier chapters, we learned about Equity funds. There is another category called Debt Funds. AMCs could choose to lend money to corporations instead of buying their shares. The returns the AMC expects when they lend money to corporates is a period interest. Just like you take a loan from a Bank, you repay…
Nifty Analysis — Stance Neutral ➡️ Recap from yesterday: “I strongly think it was an intense short covering that fueled this rally and hence does not wish to alter my bearish stance. If we get past 22295 on Monday or Tuesday, I would change the stance to neutral.” Nifty snaps out of bearishness by breaking the 22295…
Nifty Analysis — Stance Bearish⬇️ Recap from yesterday: On the higher TF, we wish to maintain the bearish stance even though we did not get a 63mts closing candle below 22051. I am hoping that we may get one in the forenoon session tomorrow. Unseen momentum on Nifty50 today, we woke up to the bad news that…
My personal favorite among the equity funds are the thematic funds. Themes are stories that play out over a period, say 10 years. If you are not that knowledgeable in stocks, jargon, or the technicals — you can still make a killing if you guess the sector right. It may take patience for something to be uncovered,…
When a Fund manager hand-picks a few stocks and groups them by a common thread, it is called focused funds. The regulations say that a fund manager can have a maximum selection of 30 stocks, but it does not specify if he should select from a specific category like Large, Mid, or Small Cap. The…
People who invest in assets look for two possible types of returns Capital Appreciation Dividends Capital Appreciation is when the valuation of the Asset grows and fetches you a higher resale value. Only Assets will have value appreciation, Liabilities do not. Time is a friend of assets and an enemy of liabilities. Dividends are incomes…
A Mutual Fund that allocates a mandatory 65% of its assets to Small cap companies (251th onwards) is called a small cap mutual fund. Usually, the Mcap of these firms may be lower than 5000 crores, but the valuation is not clearly defined in the regulation as changes in stock prices could change its Mcap….
A Mutual Fund that invests a mandatory 65% of its assets in Mid-cap companies (101st to 250th companies of India) is called the mid-cap fund. The risk profile is higher compared to a Large cap fund, but the prospect of higher returns makes this category pretty popular. People usually say, let us find the next…
The Mutual Fund that invests 80% of its assets in the Top 100 companies of India (Large Caps) is called the LargeCap Fund. It is also called Bluechip Fund by a few AMCs. Examples of a few Large Cap Funds If you liked this content, consider sharing it with your friends & relatives.. Book a…
Over the next few chapters, we will discuss the various classifications of Equity funds. Mutual funds have three main categories Equity Funds Debt Funds Hybrid Funds Equity funds are the most popular as the returns offered by them outbid the debt and hybrid categories. Since the opportunities to get higher returns are available, it normally…
