There are many hdfc or principal balanced fund is good…i think earnings for most of the companies are bottomed out…should see revival and PE should catch up automatically
But is there tax on hybrid funds?
see generally balanced funds invest upto 65% in equities so that they qualify as equity mutual funds and the remaining in debt like gsec etc…so balanced funds if held for 1 yr are tax free
Can you pls give some detail on “Bonds have asymmetric risks upside limited and downside 100% loss.”? I do not know anything about Bonds…
Balanced funds, be careful.
By definition, this type of funds are supposed to fall less when market crashes. Their idea is to beat the market, but in times of crash. However, most balanced funds ignore this principle… their managers too compete with pure equity funds to show performance and attract more customers.
You as an investor are therefore required to study their holdings and make a judgement whether it is really a balanced funds.
In 2008, Most balanced funds fell just as much as the market. So be careful.
Once you step out of FDs, nothing is what it seems. Risk factor is definitely very high, and returns commensurate to your level of skill as an investor.
I am really confused. So what according to you would be the best form of investment to beat the impending crash?
put 5% in RBI gold bond , if you are so worried about crash and short term debt fund won’t crash .
Crash is not the word to be used…rather it is correction…as long the MF industries sees inflows i doubt even 10% is rare…now the tide will turn for the companies and will see incremental earnings…believe in India growth story…of course i am overweight on equities from last years 5 yrs and i am fully invested…you may choose whatever u think is good for you…but one thing is too be noted that whatever u invest the returns should beat inflation…everyone speaks about risk in owing equities but if u don’t own it its a bigger risk…my 2 cents
Disc I maybe biased
It is best to Invest… but its not advisable to start now. It is murky waters.
Just a glimpse of bad news, while Gujarat Vidhan Sadha election counting when Congress was leading but eventually lost, market plunged a 1000 pts or so.
Where was all the “Inflow of money” that we plan to rely on… this money was selling… and selling heavy. But, luckily the tide turned and BJP won… else we would easily be 2000 points lower today.
Please stay with FD until you understand equity and bond market. Both are risky. If you want tax advantages, go with arbitrage fund or liquid fund.
you have seen that way…i have bought my favorite stocks more…stocks don t go up north when you buy them…if the fundamentals of the companies are intact…i would rather wait for yrs to reap the benefits
Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves.” – Peter Lynch
An apt quotations, but I’d add that in my opinion this quote is somewhat out of context. I focus on investing in Nifty 50 scrips, and I cannot imagine my portfolio being successful by investing at these levels.
I want value for my money in the way that my investment should get into profit within the first three years.
But fd is max 6.8%. There is no other secure investment. Should one purchase gold?
This is not right.
With this attitude you will lose money, no matter where you invest.
You should spend money, time and energy in learning.
Over and out.