Investment / The Economic Times
Tracking where FIIs are investing is crucial, but it's equally important to monitor where they are cutting their stake, as their investment decisions are typically backed by thorough research and analysis.
According to the Sebi mandate, short duration funds can invest in debt instruments which have maturity between one and three years. That means these schemes are meant for short-term investments of up to three years or more. They are somewhat in the middle when it comes to interest rate risk. They are riskier than liquid, ultra short term, and low duration funds. However, they have a lower risk compared to medium duration and long-term funds.
Arbitrage funds are gaining traction among investors seeking equity exposure but wary of high valuations, with assets under management rising significantly. These funds capitalize on price differences between cash and futures markets, offering a market-neutral position and tax advantages. Attracting HNIs, family offices, and retail investors, arbitrage funds have delivered competitive returns with relatively low risk.
A study by Motilal Oswal Mutual Fund reveals an interesting insight. The study suggests that Systematic Investment Plans or SIP returns are nearly identical. It does not matter whether investments started at market peaks or bottoms. Investors who began SIPs during high and low market valuations earned similar long-term returns. Pratik Oswal advises against overthinking market timing for SIPs.
Kotak Mutual Fund has introduced Kotak Active Momentum Fund, targeting stocks with strong earnings momentum using a proprietary model. The NFO is open until August 12, with a minimum investment of Rs 5,000.
Indian equities snapped a three-day losing streak on Tuesday, with the benchmark indices climbing as value buying in blue-chip names like Reliance Industries and HDFC Bank buoyed sentiment.
An ET Mutual Funds analysis shows that over the past year, nearly 61% of equity mutual funds delivered negative returns on lump sum investments. Of 272 funds assessed, 167 underperformed, with some losing over 10%. While top gainers like Motilal Oswal Multi Cap Fund delivered 21% returns, only four funds offered double-digit gains, underscoring the volatility in equity MFs.
Bajaj Finserv Mutual Fund introduces Bajaj Finserv Equity Savings Fund. This open-ended scheme invests in equity, arbitrage, and debt. The NFO is open until August 11. The fund aims to balance stability and growth. It combines equities, arbitrage, and fixed income. Minimum investment starts at Rs 500. The fund targets long-term capital appreciation and stable income.
Aeroflex Industries shares: The flexible flow solutions manufacturer reported a 42.22% decline in net profit to 7.17 crore for Q1 FY26, compared to 12.41 crore in the same quarter last year. Revenue for the June quarter also fell by 6.04% to 84.33 crore from 89.75 crore in Q1 FY25, indicating subdued demand despite the companys export-focused business and global customer base.
Varun Beverages, PepsiCo's bottling partner, announced its Q1 results. The company saw a profit increase. However, revenue experienced a slight decrease. The Board approved an interim dividend. Despite challenges like unseasonal rains, the company remains optimistic. They are focusing on expanding their reach and product availability. Shares of Varun Beverages saw a slight increase following the announcement.
Japan's Nikkei experienced a third consecutive day of losses, dropping 0.79% to 40,674.55, as corporate outlook concerns triggered profit-taking. Investors are cautious amid the earnings season and the potential impact of a 15% tariff on exports to the U.S. Chip-related stocks led the decline, while Nomura Research bucked the trend with a rise in quarterly net profit.
NPS equity funds have shown low single-digit returns in the past year due to market volatility, geopolitical tensions, and structural limitations. Experts suggest re-evaluating retirement strategies, considering the benefits of mutual funds for flexibility and potentially higher returns. Managing asset allocation at a portfolio level, with diversified equity and debt mixes, may offer better control and growth opportunities.
According to Sebi norms, medium to long term funds have a mandate to invest in debt and money market instruments in such a way that the Macaulay's duration of the portfolio is four to seven years. Since these schemes invest in long-term debt instruments, they are considered risky.
TCS shares: TCS posted a net profit of 12,760 crore for Q1FY26, marking a 6% year-on-year increase and surpassing market expectations. Revenue grew by 1.3% YoY to 63,437 crore; however, revenue in constant currency terms fell by 3.1%, primarily due to a significant scale-down of the BSNL contract.
Brokerages remain cautious on IndusInd Bank amid weak earnings and muted growth. Nuvama reiterated a Reduce rating with a Rs 600 target, citing falling fee income, rising NPAs, and subdued RoA outlook. Motilal Oswal stayed Neutral but raised the target to Rs 830, noting recovery signs, though business growth and asset quality remain concerns.
IndusInd Bank Q1 Results: IndusInd Bank on Monday reported a 72% year-on-year fall in its consolidated net profit for the June quarter at Rs 604 crore, compared to Rs 2,171 crore in the year-ago period. The private lender's Net Interest Income (NII) in Q1FY26 stood at Rs 4,640 crore as compared to Rs 5,408 crore in Q1 FY25, declining 14%.
Bank of India Mutual Fund introduces the Bank of India Mid Cap Fund, an open-ended equity scheme targeting long-term capital appreciation through mid-cap investments. The NFO opens July 31 and closes August 14. CEO Mohit Bhatia highlights the fund's aim to capitalize on India's economic expansion and mid-cap growth potential.
To build a Rs 1 crore corpus in 12 years, invest aggressively in diversified equity MFs. Avoid gold; opt for debt funds or FDs for safety. Start SIP of Rs 35,000 monthly.
Baroda BNP Paribas Overnight Fund, completing six years, has delivered a 35% return on a Rs 1 lakh investment since inception, crossing Rs 700 crore in AUM. Designed for short-term parking, it offers a 6.33% one-year return with minimal risk, investing primarily in tri-party repo and overnight securities, making it suitable for diverse investors.
A recent analysis by ET Mutual Funds reveals that nearly 41 equity mutual funds have consistently delivered over 15% CAGR across the last three, five, seven, and ten years. Quant Mutual Fund leads with six such schemes, followed by several fund houses with three qualifying funds each. Edelweiss Mid Cap Fund stood out with impressive returns across all timeframes.
Kotak Mutual Fund introduces the Kotak Active Momentum Fund, an open-ended equity scheme leveraging a proprietary model to identify stocks with strong earnings momentum. The NFO opens on July 29 and closes on August 12, targeting companies with increasing EPS and favorable analyst ratings. The fund aims to deliver long-term capital growth through a diversified portfolio of 40-50 high-quality stocks.
Nine out of ten NPS fund managers delivered up to single-digit returns in the past year, with DSP Pension Fund leading at 8.90%, while SBI Pension Fund posted a negative return.
Investor confidence, fueled by enhanced transparency and regulations, has significantly boosted retirement mutual funds, with AUM surging by 226.25% to Rs 31,973 crore in June 2025. This growth is driven by rising awareness of financial planning, longer life expectancies, and increasing healthcare costs, encouraging individuals to consider retirement-focused investment options.
Smallcap mutual funds lead in returns over five and ten years. Experts like Vishal Dhawan suggest their growth potential attracts risk-takers. Small caps benefit from domestic trends. While valuations are high, rebalancing portfolios is advised. Investors poured significant amounts into mid and small-cap funds. Banking sector looks promising. Small cap schemes are risky but offer high returns over long term.
As per Sebi mandate, medium duration funds must invest in debt and money market instruments with Macaulay duration of three to four years. As you can see, these schemes are suitable for investors looking to invest for three to four years or more. However, you should check the portfolio duration of the scheme to ensure that the scheme is in line with your investment horizon.
With stocks near peaks and volatility low, investors are seeking sophisticated hedging strategies beyond standard put options. Lookback or re-settable puts, which adjust their strike price as the market rises, are gaining popularity due to their relatively low cost compared to vanilla puts.
Meme stock enthusiasm has returned, creating uncertainty for professional investors. Stocks like Opendoor Technologies and Kohl's experienced gains. The S&P 500 and Nasdaq 100 indices reached record highs. Investors are borrowing heavily to buy stocks. Some analysts suggest caution due to high valuations. Comparisons are being drawn to the GameStop and AMC surge of 2021.
The Indian market closed at a one-month low on Friday, extending its longest weekly losing streak of 2025 amid a broad market sell-off triggered by weak corporate earnings, persistent foreign outflows, and global trade uncertainties.
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4 mutual fund positive returns, Here is a detailed breakup (Source: Value Research)
SIPs and compounding are powerful tools for wealth creation. Investing regularly in mutual funds through SIPs allows even small amounts to grow significantly over time. The key is to start early and stay invested for the long term. Consistency and patience are crucial for maximizing the benefits of compounding. Increase SIP amount over time to enhance corpus.
Are you wondering how long it will take to reach your target corpus of Rs 2 crore with a monthly investment of Rs 10,000?