Prashant Mahesh

Thematic funds focus on investing in firms associated with particular long-term trends, aiming for potential alpha returns. They entail a greater concentration risk when compared to traditional diversified equity mutual funds. Therefore, investors must carefully time their entries and exits. Its advisable for beginners to start with diversified equity mutual funds before venturing into themes. A gradual investment strategy over time is encouraged for thematic fund acquisitions.

In July, fund managers recalibrated their blue-chip stock portfolios, focusing on select sectors like IT, automotive, and pharmaceuticals for increased investments. Notably, financial services, particularly non-banking financial companies (NBFCs) and private lenders, received a surge in fund inflows. Conversely, stakes in public sector banks such as SBI and Bank of Baroda saw a decline, a strategic choice that underscores a preference for industries with stronger earnings visibility.

Specialised Investment Funds (SIFs) are steadily becoming a preferred choice for seasoned investors, accumulating an impressive 95,000 folios. Unlike traditional equity mutual funds, which focus solely on long positions, SIFs offer the flexibility of both long and short strategies. With a minimum investment threshold set at ten lakh rupees, these funds have successfully managed assets valued at twenty-three thousand, one hundred seventy-seven crore rupees.

Multi-cap funds provide equity-like returns with reduced volatility and drawdowns. These funds delivered strong annualised returns over a twenty-one-year period. They offer a balanced approach across large, mid, and small-cap stocks. Wealth managers suggest multi-caps simplify investment decisions for retail investors. This strategy helps manage investor behaviour during market stress periods.

As passive investing gains traction, ETFs and index funds are at the forefront of investors' minds. ETFs, which trade on exchanges similarly to stocks, usually have lower fees but can incur trading expenses. On the other hand, index funds appeal to those looking for a more effortless investment approach over the long haul.

As passive investing gains traction, ETFs and index funds are at the forefront of investors' minds. ETFs, which trade on exchanges similarly to stocks, usually have lower fees but can incur trading expenses. On the other hand, index funds appeal to those looking for a more effortless investment approach over the long haul.

Specialised investment funds are changing wealth manager portfolio structures. Hybrid SIF strategies are increasingly included in allocations. These funds offer tax efficiency and differentiated investment approaches. Wealth managers suggest these funds complement core portfolios for investors. SIFs provide flexibility through various investment strategies.

Specialised investment funds are changing wealth manager portfolio structures. Hybrid SIF strategies are increasingly included in allocations.

Mutual fund units can be held in Statement of Account or demat form. SoA mode offers simplicity for mutual fund-only investors avoiding extra charges. Demat mode suits those holding various securities and preferring consolidated management. Investors can switch between SoA and demat forms as needed. SWP and STP availability narrows the convenience gap between these modes.

Multi-asset funds have outperformed the Nifty over recent one and three-year periods. Strong returns from precious metals and REITs aided this category's performance. These funds offer flexibility to shift allocations based on market conditions. Retail investor interest has surged, making them a fast-growing mutual fund category. Fund managers' track record in rebalancing assets is crucial for investors.