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Business Standard
01-06-2025
- Business
- Business Standard
Not the time for concentrated bets, thematic funds: Mirae's Neelesh Surana
Discretionary segments, he believes, may rebound as interest rates fall, rural incomes improve, and the government steps in with measures such as tax cuts and the Eighth Pay Commission Puneet Wadhwa New Delhi Listen to This Article With the January–March 2024–25 earnings season drawing to a close, Neelesh Surana, chief investment officer at Mirae Asset Investment Managers (India), tells Puneet Wadhwa in an email interview that they expect around 12 per cent earnings growth over the next two years, driven by banking, financial services and insurance (BFSI), metals, telecommunications (telecom), and a revival in consumer sectors. Discretionary segments, he believes, may rebound as interest rates fall, rural incomes improve, and the government steps in with measures such as tax cuts and the Eighth Pay Commission. Edited excerpts: Are global markets over-optimistic about the macro outlook? How might
Mint
27-05-2025
- Business
- Mint
Earnings growth will rebound; overweight on financials, consumption, pharma, says Harshad Borawake of Mirae Asset
Expert view on markets: Harshad Borawake, the head of research and fund manager at Mirae Asset Investment Managers (India), says amid current volatility in the Indian stock market, one should stick to the diversified asset allocation and continue to invest through regular investment plans like SIPs. In an interview with Mint, Borawake shared his views on the Indian stock market, sectors he is positive about and key risks for the market. Here are the edited excerpts of the interview: So far, 2025 has been eventful, with key risks like geopolitics, policy actions (tariffs), and earnings downgrades playing out. However, India's macro setup augurs well with GDP growth ahead of other economies, supported by (a) RBI actions to ease liquidity, (b) fiscal discipline with pivot from capex to support consumption and (c) lower oil prices. Now, regarding outlook, ongoing Q4FY25 results have been weak, as expected, but have not disappointed overall. In our view, the earnings weakness is more cyclical, and we expect earnings growth to come back, led by a likely normal monsoon, rural areas doing well, the upcoming festive season, and the implementation of the 8th pay commission next year. From the risk point of view, while India stands out positively, one should watch out for weakness in the global growth led by tariff issues, which could spill over to some sectors in India. Markets in 2025 have been volatile. The Nifty 50 is up nearly 5 per cent this year, but in between, it has seen two falls of 8 per cent and 9 per cent and two instances of a rise of 8 per cent and 14 per cent. Vladimir Lenin's quote summarises the current market: "There are decades where nothing happens, and there are weeks where decades happen.' So clearly, volatility is at a heightened level, but investors should treat volatility as an opportunity rather than as a risk. One should continue to stick to the diversified asset allocation based on the individual risk profile and continue to invest through regular investment plans like SIPs. Our strategy, irrespective of the market sentiments, is to invest in quality companies up to a reasonable valuation, run by competent management and hold them for the long term. At a portfolio level, we typically follow a bottom-up stock selection approach and also follow a barbell approach, where at one end we invest in high-quality businesses and at the other end also participate in 'deep in value' businesses. While the results season is not yet over, as said earlier, the Q4FY25 earnings are weak, but largely on expected lines. From the results so far, outperformance is seen in banks and downstream oil companies. The key trends were (1) Rural India looking up, but urban still soft leading to overall weak volume growth for consumer companies, (2) focus on cost control, (3) asset quality largely strong, but weak credit growth for banks and (4) US lead weakness in IT services companies. Given the uncertain global macro setup, it may not be wise to take a top-down approach at the current juncture and better to focus on bottom-up ideas. One must use this opportunity to accumulate good quality companies at reasonable valuations. Export outlook remains uncertain on account of global geopolitical issues, while continuing to remain more constructive on domestic companies, also helped by the commodity price cool-off. Our current key overweight sectors include financials, consumption and pharma. RBI, in the last few months, have taken multiple actions to ease liquidity in the system and has also cut rates by 50 basis points so far (in February 2025 and April 2025). While the RBI has now turned accommodative, like any central bank, the RBI's future action will be a function of evolving economic indicators like inflation and GDP growth projections. With inflation in control (4-4.5 per cent) and a weak global growth setup (world GDP cut to more than 3 per cent now), we believe there is room for further rate cuts with expectations of 25- 50 bps in the upcoming policy and overall 100 bps in 2025. Early rate reductions should help transmit rates into the system when India needs to push growth and government policies that take advantage of China+1. The US Fed, with a dilemma of whether to address inflation or growth, has stated that it is in "wait and watch" mode. While the Fed's official projections suggest two rate cuts in 2025, it may refrain from cutting rates, especially in the context of the large fiscal tax cuts bill proposed by the Trump administration. Today, the USD itself is under strain for various reasons, and hence, unlike in the past, the spillovers of the Fed's policy on emerging markets are likely to be lower and may not negatively impact India. Read all market-related news here Read more stories by Nishant Kumar Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.
Economic Times
11-05-2025
- Business
- Economic Times
Mother's Day Special: How to secure her future with smart financial planning
As we honour mothers' strength, resilience, and sacrifices this Mother's Day, there's no better way to celebrate than by helping them secure their future with smart financial planning. Whether it's a young mother planning for her child's future or a retired mother seeking stability and income, smart financial planning plays a pivotal contacted two experts to learn how to build the portfolio allocation and plan financial security for the mothers. Also Read | Mutual fund SIP stoppage ratio shoots up to nearly 300% in April; fewer takers amid market volatility While planning the financial security for your mother, building a portfolio allocation plays a very important role. According to Bharti Sawant, Fund Manager at Mirae Asset Investment Managers (India), every mother should begin with setting up an emergency fund covering 3–6 months of expenses and this should form around 10–20% of the overall portfolio and for long-term growth, stocks and mutual funds are key, ideally constituting 40–70% depending on age and investment horizon. 'If the horizon is longer, for instance, 10+ years, they must prioritize pure equity funds. As age advances, gradually shift to hybrid funds, a blend of equity and bonds, gradually in order to mitigate risk. To inject stability, one can think of 'debt funds,' which provide steady income and lesser volatility, constituting 20-30% of the portfolio, particularly if the risk tolerance is low. Eventually, have a suitable Insurance cover for life and health. Insurance is not an investment but is crucial from the perspective of financial protection,' she added. Another expert believes that with changing times, more mothers are becoming financially aware and understanding the importance of investing to grow their wealth and achieve long-term financial independence and every mother has diverse goals, ranging from funding their children's education to pursuing personal aspirations like starting a business, depending on the phase of life they are in. However, what remains constant for all mothers is the need for financial planning and disciplined investing to achieve these goals, he adds.A young mother might have a long term horizon in order to create a corpus for her child's education. In another case, a mother with an older child might be saving to Guha Thakurta, Executive Director, Anand Rathi Wealth suggests that if one has short term goals then an allocation of 100% in debt would be the ideal allocation but someone with a medium term goal can have 60:40 ratio in equity and debt. However, a mother with a long-term goal can have an 80:20 ratio in equity and debt, he sharing the key strategy to build a good portfolio, Thakurta advices every investor including mothers to have a well-diversified portfolio and having products that have low correlation with each other and the best option is to opt for equity and debt as the two asset classes.'When investing in Equity, Equity Mutual Funds are a better option than Stocks as that provides the benefit of professional management and diversification. When investing in debt, if you are in the highest tax bracket, explore arbitrage funds that provide debt-like returns with equity-like taxation,' he advised. Also Read | Gold ETF record outflow for second consecutive month amid surge in prices. Is it profit booking? For mothers looking to balance growth and risk, mutual funds offer tailored solutions. Bharti Sawant recommends that if looking for long-term wealth creation, active equity funds are excellent, if for cost-effective and diversified market exposure then index funds serve the purpose. 'If you are looking to achieve a balanced approach to growth and stability, Hybrid/Balanced Funds combine stocks and bonds, offering potential returns while managing risk and in addition, 'debt funds' are also suitable for those who desire conservative investments, offering stability and regular income. Combining these categories can allow mothers to build a strong and growth-oriented financial portfolio while balancing risk, Sawant recommends. Thakurta while sharing that ultimately, it is important to maintain a diversified and goal-aligned mix of funds while regularly reviewing and rebalancing to stay on track with long-term financial objectives advices that one should invest across diversified categories, AMCs, and investment styles to avoid concentration risk. He emphasizes constructing a balanced mix of large, mid, and small cap funds (55:23:22) along with different styles like growth and value strategies, ensures resilience across market cycles and for broader diversification, investors can look into flexi cap and multi cap are several mothers who are either retired or are approaching retirement and there are young mothers as well. By sharing the two investment baskets required in one's portfolio, Thakurta mentions that one should structure her investments in for her emergency and immediate needs and another for long - term financial these two investment baskets, the long-term basket should focus on capital preservation and generating sustainable income and it's also important to define the purpose of this corpus like whether it will support her post-retirement lifestyle or be passed on to her children as a legacy, the experts recommending a strategy for 60-year old mothers, Thakurta said that an ideal SWP strategy for a 60-year-old with Rs 1 crore, can start with Rs 50,000 monthly withdrawals, increasing 5% each year to match inflation and with a 70:30 equity-debt mix and 11.4% annual growth, the investor could still end up with Rs 3 crore at age 85, ensuring steady income and long-term growth. Also Read | Small & mid cap MF inflows dip marginally, both attract over Rs 3,000 crore in April On the other hand, Sawant shares that the investment priorities changes for those mothers who are retired or are approaching retirement are different for a young advices that for those mothers who have retired or approaching retirement, the priorities must shift toward ensuring financial security and regular income and investment priorities should gravitate toward low-risk avenues like debt funds, income-generating tools like annuities or dividend-yielding funds and shares as these are less uncertain and capital-conserving in the returns that they young mothers have a longer horizon of investment and can tolerate a higher risk expecting better returns in the future and they ought to have a larger weightage of their portfolio in equity schemes to benefit from long-term gains, she the experts are of the view that it is also important that they review and rebalance their portfolio from time to time if their risk-taking capacity or situation in life is altered. (Disclaimer: 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.
Time of India
11-05-2025
- Business
- Time of India
Mother's Day Special: How to secure her future with smart financial planning
As we honour mothers' strength, resilience, and sacrifices this Mother's Day , there's no better way to celebrate than by helping them secure their future with smart financial planning. Whether it's a young mother planning for her child's future or a retired mother seeking stability and income, smart financial planning plays a pivotal role. #Operation Sindoor India responds to Pak's ceasefire violation; All that happened India-Pakistan ceasefire reactions: Who said what Punjab's hopes for normalcy dimmed by fresh violations ETMutualFunds contacted two experts to learn how to build the portfolio allocation and plan financial security for the mothers. Also Read | Mutual fund SIP stoppage ratio shoots up to nearly 300% in April; fewer takers amid market volatility Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » Building a portfolio allocation While planning the financial security for your mother, building a portfolio allocation plays a very important role. According to Bharti Sawant, Fund Manager at Mirae Asset Investment Managers (India), every mother should begin with setting up an emergency fund covering 3–6 months of expenses and this should form around 10–20% of the overall portfolio and for long-term growth, stocks and mutual funds are key, ideally constituting 40–70% depending on age and investment horizon. 'If the horizon is longer, for instance, 10+ years, they must prioritize pure equity funds. As age advances, gradually shift to hybrid funds, a blend of equity and bonds, gradually in order to mitigate risk. To inject stability, one can think of 'debt funds,' which provide steady income and lesser volatility, constituting 20-30% of the portfolio, particularly if the risk tolerance is low. Eventually, have a suitable Insurance cover for life and health. Insurance is not an investment but is crucial from the perspective of financial protection,' she added. Live Events Another expert believes that with changing times, more mothers are becoming financially aware and understanding the importance of investing to grow their wealth and achieve long-term financial independence and every mother has diverse goals, ranging from funding their children's education to pursuing personal aspirations like starting a business, depending on the phase of life they are in. However, what remains constant for all mothers is the need for financial planning and disciplined investing to achieve these goals, he adds. A young mother might have a long term horizon in order to create a corpus for her child's education. In another case, a mother with an older child might be saving to retire. Arjun Guha Thakurta, Executive Director, Anand Rathi Wealth suggests that if one has short term goals then an allocation of 100% in debt would be the ideal allocation but someone with a medium term goal can have 60:40 ratio in equity and debt. However, a mother with a long-term goal can have an 80:20 ratio in equity and debt, he adds. While sharing the key strategy to build a good portfolio, Thakurta advices every investor including mothers to have a well-diversified portfolio and having products that have low correlation with each other and the best option is to opt for equity and debt as the two asset classes. 'When investing in Equity, Equity Mutual Funds are a better option than Stocks as that provides the benefit of professional management and diversification. When investing in debt, if you are in the highest tax bracket, explore arbitrage funds that provide debt-like returns with equity-like taxation,' he advised. Also Read | Gold ETF record outflow for second consecutive month amid surge in prices. Is it profit booking? Mutual fund categories that work for mothers For mothers looking to balance growth and risk, mutual funds offer tailored solutions. Bharti Sawant recommends that if looking for long-term wealth creation, active equity funds are excellent, if for cost-effective and diversified market exposure then index funds serve the purpose. 'If you are looking to achieve a balanced approach to growth and stability, Hybrid/Balanced Funds combine stocks and bonds, offering potential returns while managing risk and in addition, 'debt funds' are also suitable for those who desire conservative investments , offering stability and regular income. Combining these categories can allow mothers to build a strong and growth-oriented financial portfolio while balancing risk, Sawant recommends. Thakurta while sharing that ultimately, it is important to maintain a diversified and goal-aligned mix of funds while regularly reviewing and rebalancing to stay on track with long-term financial objectives advices that one should invest across diversified categories, AMCs, and investment styles to avoid concentration risk. He emphasizes constructing a balanced mix of large, mid, and small cap funds (55:23:22) along with different styles like growth and value strategies, ensures resilience across market cycles and for broader diversification, investors can look into flexi cap and multi cap funds. Custom Planning: Retired vs. Young mothers There are several mothers who are either retired or are approaching retirement and there are young mothers as well. By sharing the two investment baskets required in one's portfolio, Thakurta mentions that one should structure her investments in for her emergency and immediate needs and another for long - term financial security. Among these two investment baskets, the long-term basket should focus on capital preservation and generating sustainable income and it's also important to define the purpose of this corpus like whether it will support her post-retirement lifestyle or be passed on to her children as a legacy, the experts added. While recommending a strategy for 60-year old mothers, Thakurta said that an ideal SWP strategy for a 60-year-old with Rs 1 crore, can start with Rs 50,000 monthly withdrawals, increasing 5% each year to match inflation and with a 70:30 equity-debt mix and 11.4% annual growth, the investor could still end up with Rs 3 crore at age 85, ensuring steady income and long-term growth. Also Read | Small & mid cap MF inflows dip marginally, both attract over Rs 3,000 crore in April On the other hand, Sawant shares that the investment priorities changes for those mothers who are retired or are approaching retirement are different for a young mother. She advices that for those mothers who have retired or approaching retirement, the priorities must shift toward ensuring financial security and regular income and investment priorities should gravitate toward low-risk avenues like debt funds, income-generating tools like annuities or dividend-yielding funds and shares as these are less uncertain and capital-conserving in the returns that they provide. Conversely, young mothers have a longer horizon of investment and can tolerate a higher risk expecting better returns in the future and they ought to have a larger weightage of their portfolio in equity schemes to benefit from long-term gains, she added. Both the experts are of the view that it is also important that they review and rebalance their portfolio from time to time if their risk-taking capacity or situation in life is altered. 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
09-05-2025
- Business
- Mint
Debt mutual fund inflows in April at 2-decade high as investors seek safer bets
Investors pumped money into debt mutual funds in April as they sought lower-risk options to ride out the market volatility and to rebalance their portfolios at the start of the financial year, taking net inflows into these funds to the highest in over two decades. Net inflows into debt-oriented open-ended mutual fund schemes were at ₹ 2.19 trillion in April—the highest since January 2005, from when this data is available. The net inflows marked a sharp reversal from March, when debt-oriented schemes witnessed outflows of ₹ 2.02 trillion. Within debt schemes, liquid funds saw the highest inflows of ₹ 1.18 trillion, followed by money market funds' ₹ 31,507 crore and ultra-short duration funds' ₹ 26,733 crore, data from the Association of Mutual Funds of India (AMFI) showed. According to Suranjana Borthakur, head of distribution and strategic alliances, Mirae Asset Investment Managers (India), investors are favouring debt schemes for their stability and liquidity, especially in an environment marked by geopolitical uncertainties and market fluctuations. 'The significant inflows into arbitrage funds at ₹ 11,790 crore, a 9-month high, further underscores this preference for low-risk options, as investors seek to park funds securely while awaiting clearer market signals,' said Borthakur. In the short term, investors are likely to continue favouring shorter-end debt schemes and arbitrage funds over equity schemes until the volatility triggered by the India-Pakistan conflict subsides, as these offer stability and lower risk, Borthakur added. Initially, the volatility in India's stock market was driven by concerns over US President Donald Trump's reciprocal tariff policies, which raised fears of increased capital flows to US dollar markets, experts said. 'However, the phase of Trump-related tariffs may be easing soon as bilateral discussions with major countries have started,' said Seemant Shukla, chief executive, Quantum AMC. India and the US are working to finalise the first phase of a bilateral trade agreement by September-November, which could soften the potential impact of Trump's new tariffs. On 6 May, India struck a landmark free trade agreement with the UK that promises to unlock major economic gains for India by eliminating tariffs on 99% of Indian exports to Britain, covering nearly 100% of the trade value. The escalating conflict between India and Pakistan, however, would have an impact on volatility and markets in the short run, said Shukla. Portfolio rebalancing also had a significant influence on investors turning to debt mutual funds. 'One of the key reasons for the sharp surge in debt mutual fund inflows in April is the beginning of the financial year, a period when corporates and institutions typically reallocate their portfolios,' said Gaurav Goyal, head–sales and marketing, Canara Robeco AMC, and the company's spokesperson on AMFI data. This has led to significant investments in liquid, overnight, money market, and ultra-short-term funds, he said. Net inflows into equity mutual fund schemes dropped to a one-year low of ₹ 24,269 crore in April, marking a 3.2% decline on a month-on-month basis. That was the fifth straight month of declining inflows into equity schemes. In times of heightened market volatility and geopolitical uncertainty, it is common for investors to shift toward conservative assets such as debt funds, said Feroze Azeez, joint-chief executive, Anand Rathi Wealth Ltd. However, he added that such trends are typically short-lived. 'Historical patterns suggest that the impact of geopolitical tensions on equity markets tends to be temporary. Over the long term, market performance is more strongly influenced by economic fundamentals and corporate earnings,' said Azeez. As the current wave of war-led uncertainty stabilizes, said Azeez, it is likely that investors will gradually reallocate towards equity schemes. Within equity schemes, net inflows were highest in flexicap schemes at ₹ 5,541 crore. This was followed by smallcap and midcap funds with net inflows of ₹ 3,999 crore and ₹ 3,313 crore, respectively. Monthly inflows into mutual funds via systematic investment plans surged to an all-time high of ₹ 26,632 crore in April. This was driven by a steady increase in the number of contributing accounts, which now total 83.8 million.
