Latest news with #KotakMutualFund
Economic Times
3 days ago
- Business
- Economic Times
Beware of social media fraudsters masquerading as me: Nilesh Shah of Kotak Mutual Fund
Nilesh Shah, Managing Director of Kotak Mahindra Asset Management Company, has issued a public warning to investors about fraudsters on social media masquerading as him. Shah posted on social media platform X that, 'This is fraud. Please beware of such fraudsters on social media masquerading as myself. I don't give stock specific views.' This is beware of such fraudsters on social media masquerading as myself. I don't give stock specific views. — Nilesh Shah (@NileshShah68) June 3, 2025 Along with the post, he linked a "fraud" video where Nilesh is asked about what good advice he has for investors and in response to that Shah is shown answering that every morning at 9:00 AM he shares one or three hot stocks in his Whatsapp group. And on why no one is leaving the group, Shah is shown saying that it was because there are no fees, no subscription, and the updates are consistent, and everyday we provide with the latest and most comprehensive stock analysis recommendations. In May also, Kotak Mutual Fund posted on social media platform X that a fraudulent account is impersonating Shah on social media and also requested investors or users to follow only the official account on X and unfollow and report the fraudulent account immediately. He posted, 'A fraudulent account is impersonating Mr. Nilesh Shah on social media. Please be aware that @NileshShah68 is the only official account. If you are following any other account claiming to be him, we kindly ask you to unfollow and report it immediately. Together, we can prevent the spread of false information.' A fraudulent account is impersonating Mr. Nilesh Shah on social media. Please be aware that @NileshShah68 is the only official you are following any other account claiming to be him, we kindly ask you to unfollow and report it immediately. Together, we can prevent… — Kotak Mutual Fund (@KotakMF) May 15, 2025 On May 1, Shah shared an image of an account which he mentioned as fraud and requested everyone not to fall into the trap. This one is impersonation. Please don't fall into the trap. — Nilesh Shah (@NileshShah68) May 1, 2025 The official account of Nilesh Shah on social media platform X is @NileshShah68 and that of Kotak Mutual Fund is @KotakMF. (Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Time of India
5 days ago
- Business
- Time of India
Volatile Markets and SIPs: What should mutual fund investors do?
Live Events Amid a volatile market , many investors are questioning whether they should continue their Systematic Investment Plans (SIPs) or pause until stability returns. However, market experts recommend continuing SIPs, citing reasons such as attractive valuations, lower average purchase prices, the benefits of habit formation, the impossibility of timing the market, and the long-term advantages of compounding.'When equity markets fall, valuations also fall, making investments at a lower price more attractive; therefore, when the market falls, it is the best time to continue SIP, discontinuing SIPs can hamper the investors' ability to save and invest, and take away the discipline of long term investing, the investor thinks that he/she can enter again or restart at lower prices, but it's not always possible, and lastly the whole idea of a SIP is to do away with market timing speculation and stopping a SIP can disrupt the process of compounding,' Vishal Dhawan, CEO, Plan Ahead Wealth Advisors, a wealth management firm in Mumbai told ETMutualFunds He added that since equity investing is aimed at long-term compounding benefits, one can start SIPs at any time. However, while markets have recovered from their recent lows, periods of market decline typically lead to more attractive valuations. Investing more during such times—when markets are not at their peak—increases the probability of achieving superior long-term returns. 'So, depending on cash flow surpluses, there is a need to try to have a significant portion of the cash flow surpluses going through SIPs ideally.'Another expert cited studies which show that investors' returns and market returns are not the same. This is because an investor is either entering or exiting the market at the wrong time. To achieve their goals, one needs to give time and be patient. That's what SIPs do: help you achieve your goals in a disciplined manner over periods of time.'In the journey, there will always be short-term hiccups, but staying focused on your investments is the only way to achieve your goals,' said Manish Mehta, Joint President & National Head –Sales, Digital Business & Marketing, Kotak Mutual Fund , shared with far in the current calendar year, the benchmark indices — BSE Sensex and Nifty50 — have gained 4.23% and 4.67%, respectively. Over the past three months, they have risen by 11.27% and 11.86%, respectively, while over the last nine months, they have declined by 1.11% and 1.92%, May, Nifty50 breached the 25,000 mark for three days. On May 26, Nifty 50 closed up by nearly 13% from April's low level, and as the benchmark index scales up, many market experts recommend that investors continue with their SIPs, whereas they should stay cautious while doing lump-sum investments and should try to stagger their an addition to this, Dhawan recommends that currently, valuations are above their long-term averages, especially in the case of mid and small caps, and thus it is preferred to invest through SIPs/STPs. 'However, the ongoing volatility driven by global trade wars and cross-border tensions could present sudden opportunities. Market corrections can be sharp, so it's wise to be prepared for lump-sum investing, besides continuing with SIPs,' he further shared with the other hand, Mehta recommends that STP is suited when one has some money available for lumpsum investment but varies with market fluctuations and in this case one can park the money in a fixed income scheme and do a STP with a duration of their choice plus if an investor plans to invest out of a regular income stream then SIP fits the requirement where in a disciplined manner one can regularly keep looked at the performance of equity mutual fund categories since the April low and found that out of 21 categories, 19 offered double-digit average returns, and two, pharma and consumption-based funds, gave single-digit returns in the same time frameSince April 7, the Auto sector-based funds offered an average return of 19.13%. Technology-based funds gave a 17.44% average return in the same period. International funds gave 16.83% and infrastructure funds delivered 15.95% average return in the same and small-cap funds gave 15.86% and 16.42% respectively since April's low level. Contra and large-cap funds were last in the list of double-digit gainers. The categories gave 11.92% and 11.03% respectively in the mentioned the categories gain since April's low and the market being still volatile, Mehta recommends that long term wealth creation can happen through regular investments in equity oriented schemes to support which there is enough historical data to demonstrate long term wealth creation through equity schemes and since SIPs are recommended over longer time horizons, investments in multicap / flexicap / large and midcap kind of to a release by Motilal Oswal Private Wealth, large-cap valuations are now around their 10-year average, while mid- and small-caps still trade at a premium, though select opportunities further shared with ETMutualFunds that currently, large-cap stocks offer attractive valuations compared to small and mid-caps, which makes them a smart starting point for SIPs (Systematic Investment Plans), especially in funds that are currently overweight in the large-cap category, and these funds are also safer for new adds that different assets perform well in different timeframes; therefore, your portfolio should include multi-asset funds. Geographical diversification is crucial for any robust portfolio, so consider adding global or international funds to reduce reliance on the domestic market and gain exposure to different economies and currencies. Additionally, under debt funds, one can consider short-term funds for short-term goals and long-term funds to take duration exposure, and for those in higher tax brackets, equity savings and arbitrage funds offer good options for short-term fund parking, he informed should always choose a scheme based on risk appetite, investment horizon, and goals.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ alongwith your age, risk profile, and Twitter handle.
Mint
08-05-2025
- Business
- Mint
Operation Sindoor: Should mutual fund investors brace for impact or stay the course?
The Indian government's bold military response—Operation Sindoor—in response to the Pahalgam attack on April 22 has created understandable jitters in financial markets. However, history offers a reassuring narrative for long-term investors, especially mutual fund participants. The immediate impact of any political upheaval is seen instantly in the stock markets. However, mutual funds are relatively safer investments since they invest in a range of stocks, sectors and asset classes, thus diversifying the risk. So, investors of mutual funds are generally in a sweet spot vis-à-vis stock investors. Here's a data-backed breakdown of how markets have behaved during past conflicts and how you should approach your mutual fund investments now. Historically, India's capital markets have shown short-term volatility during military conflicts but have bounced back strongly over time. Below are key examples: Event 1 month before During conflict 1 year after Kargil War (1999) -8.3% +36.6% +29.4% Uri Surgical Strike (2016) -0.3% +0.4% +11.3% Balakot Airstrike (2019) +0.8% -0.4% +8.9% Source: MFI Explorer (Compiled by Kotak Mutual Fund) Even in the case of full-blown wars like Kargil, market corrections were temporary. Within a year, investors were well-compensated for staying invested. Although stock markets recovered, macroeconomic indicators did reflect some pressure—mainly inflation and fiscal deficit. War GDP (%) WPI inflation (%) Fiscal deficit (%) Kargil War (1999) 6.18 → 8.85 5.90 → 3.30 9.10 → 9.20 1962 Sino-Indian War 3.72 → 2.93 0.24 → 3.80 2.93 → 3.99 1965 Indo-Pak War 5.99 → 7.45 6.17 → 10.98 4.86 → 5.72 1971 Bangladesh War 3.30 → 1.19 5.54 → 5.60 2.38 → 6.82 Source: IMF, RBI, Sunidhi Research (Compiled by Kotak Mutual Fund) Inflation tends to spike and fiscal discipline gets challenged in prolonged conflicts, but India's GDP has demonstrated resilience across these timelines. In the wake of Operation Sindoor, investors might feel a natural urge to react swiftly to protect their portfolios. However, data and market behavior suggest that a calm, disciplined approach often outperforms impulsive decision-making. "SIP works on rupee cost averaging method. It means over a long period of time, your cost of purchase becomes average due to the bear and bull market and your investments become less volatile in comparison to lumpsum investments. Volatility is the part and parcel of equity investments. Investors should stay put in such volatility rather than converting their notional loss into permanent loss. Therefore, you should continue your SIPs and focus on long term wealth creation," says Preeti Zende, a Sebi-registered investment advisor and founder of Apna Dhan Financial Services. 1. Continue SIPs: Systematic Investment Plans (SIPs) are built to withstand volatility. They capitalize on rupee-cost averaging—meaning you buy more units when prices fall and fewer when they rise. This smoothens the cost over time and ensures you don't try to time the market, which rarely works. Example: An investor who continued their SIP through the 2016 Uri Strike and 2019 Balakot Airstrike periods saw handsome gains a year later. Market dips turned into opportunities for wealth accumulation. 2. Top-up SIPs: If you have surplus cash and a long-term horizon (5–10+ years), consider increasing your SIP amounts temporarily. This is akin to buying quality assets at a discount, especially in fundamentally strong equity funds. 3. Staggered lumpsum investments: If you've recently received a bonus, sale proceeds, or idle funds, avoid putting it all into the market at once. Break it into 3–6 tranches over the next few months. This strategy cushions you from near-term volatility and helps ride the market's recovery phases. 4. Rebalance if needed (not panic sell): If your asset allocation has skewed heavily toward equity or debt due to market movements, consider rebalancing. But do it in a planned manner, ideally under a financial advisor's guidance—not as a knee-jerk reaction. 1. Avoid panic selling: Emotional selling during sharp market corrections often results in crystallizing losses. Many investors who exited during COVID-19's market crash in March 2020 missed the V-shaped recovery that followed just months later. 2. Don't stop SIPs: Pausing or stopping SIPs during turbulence undermines the whole purpose of long-term investing. Even skipping a few SIPs can lead to a substantial difference in final corpus due to missed units at lower NAVs. 3. Don't overcorrect portfolio allocation based on headlines: Geopolitical tensions, while serious, typically create temporary distortions. Avoid completely shifting to debt or gold just based on fear. Stick to your original investment strategy unless your financial goals have changed. Disclaimer: Mutual fund investments are subject to market risks. Consult your financial advisor before making decisions.
Economic Times
07-05-2025
- Business
- Economic Times
India-Pakistan conflict: How should mutual fund investors deal with geopolitical threats?
Live Events With the ongoing India-Pakistan conflict after the Indian Armed Forces' precision strike on terror camps in Pakistan and Pakistan-occupied Kashmir (PoK), the mutual fund investors are recommended to stay invested and avoid knee-jerk decisions, according to a release by Kotak Mutual Fund 'It is difficult to predict the market direction however, the last major conflict has triggered temporary drawdowns before markets rebounded. Staying invested and avoiding knee-jerk decisions may be prudent for long-term wealth creation,' Said Kotak Mutual fund house recommends that investors investing via SIP can consider topping up their ongoing SIP if possible, and should not exit from the existing SIP, whereas the investors making lumpsum investments may consider adding investments in a staggered way, and should not sell in sharing how the current conflict could play out on the economy and markets, the fund house said that if it is a prolonged conflict then macro-economic variables such as inflation and fiscal deficit could increase, and markets may correct the other hand, if there is no conflict or a conflict for a limited period, the impact on the economy will be limited, and even the markets may have been two such surgical strikes since 2016 (Uri and Balakot) and the impact on the market has been the Uri Surgical Strike, which was between 18-28 September 2016, the market dropped by 0.3% from the day of the attack till the strike, and on the day of strike, it went up by 0.4%. One year after the strike, the markets surged by 11.3%, the release the time of the Balakot Airstrike, which was between 14-26 February 2019, the market went up by 0.8% from the day of the attack till the strike and on the day of the strike, it went down by 0.4%. One year after the strike, the markets surged by 8.9%.'Government action suggests there is low possibility of a war. However, in case of a full-blown war, we must note that since 1950, India has seen 4 major wars. In the last major conflict (Kargil-1999), the equity markets have remained robust after an initial panic,' the release to the release by Kotak Mutual Fund, at the time of Kargil War, which went on between 3 May to 26 July 1999, the market dropped by 8.3% just one month before the war and during the war, it surged 36.6%. After one year of the war, the market gained 29.4%.'Short term market swings during geopolitical events are unsettling, but history shows that they rarely derail India's long term growth story. In the long term, the macroeconomic factors and corporate earnings drive the stock market performance,' said the fund house.
Time of India
28-04-2025
- Business
- Time of India
Nilesh Shah lists 5 key challenges faced by mutual fund managers in generating alpha
This alpha generation / outperformance is despite constraints of - Fund keeps cash to provide Daily Liquidity. Index doesn't have any cash. Cash creates a drag on Fund Performance by 50 bps to 100 bps. - Index can have more than 10 % weight in a Stock. Fund weight is capped at… — Nilesh Shah (@NileshShah68) April 27, 2025 Live Events Rolling Return Alpha / Outperformance over Benchmark Index — Nilesh Shah (@NileshShah68) April 27, 2025 First They said fund managers don't outperform they said large cap fund managers don't outperform index. Then they said small and mid cap fund managers don't outperform Index. now they say Fund Managers don't outperform index on a five year risk adjusted basis. Going… — Nilesh Shah (@NileshShah68) April 27, 2025 Despite various constraints, Kotak Mutual Fund's schemes have been adding value to investors' returns — generating alpha on SIP , point-to-point, and rolling return basis. Nilesh Shah , managing director of Kotak Mutual Fund , noted that this outperformance is akin to fund managers running a hurdle race while being held accountable as if they were running a normal sharing five constraints, Shah said that the fund keeps cash to provide daily liquidity, the index doesn't have any cash and keeping cash in the portfolio creates a drag on fund performance by 50 bps to 100 second constraint, according to Shah, is 'Index can have more than 10% weight in a Stock. Fund weight is capped at 10%. Most Funds have to book profit when stock weight goes above 10%.' The third constraint is that index changes happen at the closing price, whereas the fund has to bear the impact cost of buy and sell next constraint, shared by Shah, is that the Index doesn't have any transaction costs, whereas the fund has to incur transaction costs for entry and exit from stocks/investors.'Globally Fund performance is compared gross of expenses with total return Index. We compare net of expenses fund performance with the Total Return Index,' Shah wrote on social media platform X (formerly Twitter).The schemes managed by Kotak Mutual Fund have generated alpha or outperformed the benchmark index across different timeframes, such as three-, five-, seven-, and 10 years, based on SIP returns, rolling return, and point-to-point returnsShah compared what many investors or people say about the fund managers when there is a slight underperformance against the benchmark with reference to a popular dialogue from the Devdas movie.'First, they said fund managers don't outperform index. Then they said large-cap fund managers don't outperform index. Then they said small and mid-cap fund managers don't outperform index,' Shah of Kotak Mutual Fund wrote on X.'Now they say Fund Managers don't outperform index on a five-year risk-adjusted basis. Going forward, what will they say ?' he added.
