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Economic Times
5 days ago
- Business
- Economic Times
Time to hold your horses; stick to safe large-caps and avoid hyped sectors: Anurag Singh
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads "The recent bill has already reduced taxes, and more deregulation is expected from the government. On top of that, the Federal Reserve now seems more open to rate cuts , which further strengthens the economic foundation. So overall, it's a very positive environment for both the economy and the markets," says Anurag Singh , Managing Partner, Ansid I get to the dollar, let me first talk about the economy. The US economy is doing very well. Sentiment, business outlook, and optimism are at unprecedented levels. I would caution against some widely-read publications — particularly a few prominent ones from Europe and the US. I won't name them, as I interact with them as well. But if you go by their narratives, it feels like the US economy is headed downhill. The reality is quite the opposite. The US is thriving. Business and consumer optimism are high, employment is at peak levels, and growth appears recent bill has already reduced taxes, and more deregulation is expected from the government. On top of that, the Federal Reserve now seems more open to rate cuts, which further strengthens the economic foundation. So overall, it's a very positive environment for both the economy and the on the dollar — as we've discussed before, a modest weakening from 108 to 104 or even 102 was acceptable. But what we're seeing now is more of an oversell. Much of this pressure has come from positioning by Chinese and Japanese investors. I believe some of that will reverse, and the dollar index could move back to the 100–102 range. That said, there is a contrarian view — some believe the dollar could weaken further. But in my view, money will ultimately flow back to the dollar, and the current European enthusiasm may be short-lived. So yes, that's my take on the US economy and the dollar challenge with India is that it's no longer a cheap market. It does try to correct, but it's mostly a story of flows. Systematic Investment Plans (SIPs) and retail inflows — nearly ₹50,000 crore a month — are preventing any meaningful correction. Of the entire market, only about 15% is held by FIIs, and the rest is largely retail-driven. Promoters may be selling at the margins, but broadly, domestic buying continues to support the said, I don't see the market racing ahead either. Growth and earnings are only in the high single digits, so we're likely in for a period of consolidation. Over the past five years, the Nifty delivered ~20% returns and mid- and small-caps grew around 30%. It's reasonable to now expect a pause. Everyone knows it's a great market, but everything is already priced in. FIIs are not rushing in right now — they may enter selectively, but broad-based participation seems unlikely. Valuations are fair, and there are no bargains — that's my regulation in the US is undergoing significant change. If you go back to 2008, when President Obama took office, the Dodd-Frank Act introduced a heavy regulatory burden — driven by figures like Elizabeth Warren. Over the years, this throttled the big banks — JPMorgan , Wells Fargo, Citi, Bank of America, Goldman Sachs , and Morgan Stanley Now, many of those restrictions are being rolled back. For example, some constraints on Wells Fargo have been removed, and Goldman Sachs leadership is sounding optimistic. Over the next 3–4 years, even small banks are being freed from regulatory pressure. This removal of 'regulatory cholesterol' will significantly benefit the US banking sector in the medium term, and that's already being reflected in stock performance over the past India, the situation is different. Credit growth has already been phenomenal. Retail credit to GDP doubled from ~20% to over 40% in just five to six years. But now incomes are not keeping pace, and households are highly leveraged — limiting further borrowing capacity. As a result, credit growth is slowing, stabilizing around 10–12%, which is in line with nominal GDP. While banks remain a good investment and aren't overly expensive, one must remember that banking is cyclical. After a few strong years, some consolidation is expected — and we're entering that phase now.A year ago, people quietly advised moderation in return expectations. Now, even leading mutual fund voices are openly saying: don't expect more than 7–10% annually for the next few years. The Indian market is fairly valued. There are no clear you're already invested, stay invested. If you've had a 20% return year, you can't expect that every year — that's just how it is. But don't jump in with everything at once. Don't sell your family silver to enter the market right the money flowing in slowly, but be cautious. I'll still point out a couple of sectors. Healthcare — particularly beyond pharma — like hospitals and diagnostics, looks promising. These businesses are growing faster than the economy and have pricing power, so they're than that, be cautious. Multiples may contract as growth slows. You'll need to track the US market closely for further cues. Banks are fine — especially the top two-three private sector names — I've always liked them. I'm less optimistic about PSU banks.I remain cautious on life insurance — that sector seems to have peaked. Despite all the hype, insurance stocks haven't done much. Broking and capital markets are overheated — we now have 18 crore Demat accounts. That growth can't go on forever, so that space also looks stay cautious. Keep some funds on the sidelines. Allocate 20–25% to bonds. I've always advocated for balanced investing — blindly pushing money into SIPs only inflates valuations further. Investors need to reflect and is a time to hold your horses, stick to safe large-caps, and avoid hyped-up sectors like defence where valuations seem unjustified — despite the story. Also, stay away from IPOs for now. That, in essence, is my current portfolio stance.
Time of India
10-07-2025
- Business
- Time of India
Equity MFs see surge in inflows to Rs 23,587 crore in June
Mumbai: Investments in equity mutual funds rebounded in June after five consecutive months of declining inflows. Net inflows surged to ₹23,587 crore during the month, marking a 24% jump over May's ₹19,013 crore, driven by fresh subscriptions to flexi-cap, mid-cap and small-cap schemes. While debt mutual funds saw outflows, a buoyant equity market and pick-up in retail participation helped the industry's net assets under management (AUM) scale to a new all-time high of ₹74.41 lakh crore in June, up from ₹72.20 lakh crore in May. The reversal comes after inflows had steadily fallen from ₹39,688 crore in January to ₹19,013 crore in May. It was the 52nd consecutive month of flows into equity schemes since March 2021. Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Seniors: Don't Drink Apple Cider Vinegar For This Reason Gundry MD Learn More Undo Agencies Record SIPs Systematic Investment Plans (SIPs) remained a major driver of retail flows into equity funds. SIP contributions rose to a record ₹27,269 crore in June, up 2.2% from ₹26,688 crore in May. The number of contributing SIP accounts increased from 8.56 crore in May to 8.64 crore in June. Live Events SIP AUM stood at ₹15.31 lakh crore in June, accounting for 20.6% of the industry's total assets, higher than 20.2% in May. A total of 61,91,178 new SIPs were registered during the month. Investor sentiment remained positive despite global uncertainties, with market gains helping equity flows. The NSE's Nifty gained 2.7% and the BSE's Sensex rose 3.1% in June. New Fund Offers (NFOs) also aided inflows in equity funds. NFOs raised ₹1,986 crore across 20 new open-ended schemes in June. In the equity category, flexi cap funds registered highest inflows of ₹5,733 crore, followed by small cap funds that recorded inflows of ₹4,024 crore. Total mutual fund folios climbed to 24.13 crore as of June, reflecting continued investor interest. Retail mutual fund folios (equity, hybrid and solution-oriented schemes) rose to 19.07 crore in June from 18.84 crore in May, while retail AUM grew to ₹43.99 lakh crore from ₹42.20 lakh crore a month earlier. Hybrids Arbitrage funds contributed ₹15,584.57 crore - the most among hybrid-based funds - though inflows were marginally lower compared with May. The inflows in multi-asset allocation funds that invest in equity, debt and gold grew 9.7% to ₹3,209.9 crore in June. In June, Gold ETFs witnessed inflows of ₹2,080 crore, up 613% from ₹292 crore recorded a month ago. "Almost a 10 times jump in gold ETF inflows suggests investor desire to diversify their asset allocations in an uncertain global environment and hedge against any global volatility," said Sumit Bhatnagar, Fund Manager - Equity at LIC MF. Debt Funds Debt mutual funds recorded net outflows of ₹1,711 crore in June, with liquid funds recording the most outflows. Liquid Funds saw the highest outflows at ₹25,196 crore, largely driven by corporate advance tax payments, though this was 37% lower than May outflow of ₹40,205 crore. Overnight Funds also remained negative with ₹8,154 crore in outflows. While the debt segment largely remains influenced by liquidity and rate expectations, shorter-duration funds benefited from investor preference for relatively safer avenues amid interest rate uncertainties. Ultra Short Duration Funds grew 59% to ₹2,944 crore. Short Duration Funds jumped 474% to ₹10,277 crore from ₹1,790 crore in May.
India.com
22-06-2025
- Business
- India.com
CA Explains How FOMO And Undisciplined Spending Is Killing Your Savings Despite High Income
New Delhi: Managing money successfully isn't simply a matter of how much you earn. Instead, it's about how well you align your finances with your personal aspirations. This is a lesson highlighted by Abhishek Walia, Chartered Accountant and Founder of Zactor Tech, who uses real-life examples from his practice to drive home the point. Clarity of Purpose: The Game Changer Walia recalls a recent case involving a young professional earning ₹90,000 per month. 'She had no side hustles, no major investments, and no debt,' he explains. What set her apart was her clear financial vision: she maintained a six-month emergency fund and was disciplined about her Systematic Investment Plans (SIPs) to fund her MBA, planned for three years later. Her straightforward yet intentional approach kept her financially stable and stress-free as she pursued her long-term goals. High Income, Low Stability: A Cautionary Tale In contrast, Walia describes another client earning ₹2.5 lakh per month who lived paycheck to paycheck. 'Despite the higher income, she was constantly broke by month-end,' he says. 'There was no emergency fund, no investments—just lifestyle upgrades and spending driven by FOMO (fear of missing out), with no clear financial direction.' This scenario illustrates how a lack of planning can lead to financial instability, regardless of income level. Mindset Over Money Walia emphasizes that true wealth is rooted in mindset, not just income. 'People often mistake a bigger paycheck for financial success,' he notes. 'But real wealth is what you keep, not what you earn. Without a plan, even ₹2 lakh a month can vanish before the month is over.' This insight serves as a powerful reminder of the importance of financial literacy and structured planning. The Power of Clarity Walia identifies clarity as the critical factor. 'It's a clarity issue,' he says. 'The ₹90,000 earner knew her 'why.' The ₹2.5 lakh earner didn't.' Understanding your financial priorities can make all the difference in achieving long-term stability and growth. Money With Purpose Compounds 'Money without clarity will quietly disappear,' Walia observes. 'But money with purpose? That compounds.' His advice is clear: intentional financial management, driven by a defined purpose, is the foundation of sustainable wealth. Shifting the Focus He also warns against the common obsession with simply earning more. 'We live in a world obsessed with earning more. But wealth starts with more intention,' Walia advises. He urges a shift in perspective—from chasing higher income to managing existing resources more effectively. This change in approach can lead to more meaningful and lasting financial success
News18
11-06-2025
- Business
- News18
Planning For Your Child's Future? Explore SSY, NPS Vatsalya, MFs, PPF, And Bank FDs
Last Updated: Parents naturally want to secure their children's future, and making wise investment choices can help build long-term financial stability Investment Plans For Children: Parents naturally want to ensure a secure future for their children. Making informed investment choices can be crucial in achieving long-term financial stability and growth. While financial planning can seem daunting, a systematic and disciplined approach can lead to significant wealth accumulation. India offers various investment schemes designed to provide both security and growth. Let's explore some of the most effective options: Sukanya Samriddhi Yojana (SSY) SSY is a government-backed savings scheme focused on the financial security of girl children. Parents or legal guardians can open an account for a girl child below 10 years. The account matures after 21 years or upon the girl's marriage after turning 18. As of 2025, the interest rate stands at 8.2%, compounded annually. Deposits range from ₹250 to ₹1.5 lakh annually, with tax benefits under Section 80C. Public Provident Fund (PPF) The PPF is a long-term government-backed investment option offering a current interest rate of 7.1% (revised quarterly). The interest earned is tax-free, and contributions qualify for tax deductions under Section 80C. With a 15-year lock-in period, PPF is ideal for long-term goals like funding higher education. National Savings Certificate (NSC) NSC is a fixed-income investment option with a five-year maturity period. It offers competitive interest rates (revised periodically) and tax benefits under Section 80C. The interest earned is reinvested, making NSCs a safe choice for accumulating funds for a child's education. ULIPs combine insurance and investment. Part of the premium goes toward life insurance, while the rest is invested in equity or debt instruments. ULIPs have a five-year lock-in and offer potential for higher returns, depending on market performance. They provide tax benefits under Section 80C, but it's important to review associated charges and risks before investing. Mutual Fund SIPs Systematic Investment Plans (SIPs) allow regular investments in mutual funds, promoting financial discipline and harnessing the power of compounding over time. Fixed Deposits (FDs) Bank FDs remain a popular choice for conservative investors due to their safety and assured returns. While interest rates are usually lower than market-linked options, special FDs for children can help fund educational expenses and other needs. Before choosing an investment, evaluate the risk, return potential, and lock-in period of each option. Diversifying across different schemes can also help reduce risk and maximize returns, ensuring a secure financial future for your child.
Globe and Mail
28-05-2025
- Business
- Globe and Mail
European companies cut costs, scale back investments in China as its economy slows
BEIJING (AP) — European companies are cutting costs and scaling back investment plans in China as its economy slows and fierce competition drives down prices, according to an annual survey released Wednesday. Their challenges reflect broader ones faced by a Chinese economy hobbled by a prolonged real estate crisis that has hurt consumer spending. Beijing also faces growing pushback from Europe and the United States over surging exports. 'The picture has deteriorated across many key metrics,' the European Union Chamber of Commerce in China said in the introduction to its Business Confidence Survey 2025. The same forces that are driving up Chinese exports are depressing the business outlook in the Chinese market. Chinese companies, often enticed by government subsidies, have invested so much in targeted industries such as electric vehicles that factory capacity far outpaces demand. The overcapacity has resulted in fierce price wars that cut into profits and a parallel push by companies into overseas markets. In Europe, that has created fears that growing imports from China could undermine its own factories and the workers they employ. The EU slapped tariffs on Chinese EVs last year, saying China had unfairly subsidized electric vehicle production. 'I think there's a clear perception that the benefits of the bilateral trade and investment relationship are not being distributed in an equitable manner,' Jens Eskelund, the president of the EU Chamber in China, told reporters earlier this week. He applauded efforts by China to boost consumer spending but said the government must also take steps to ensure that supply growth doesn't outpace that in demand. The survey results show that the downward pressure on profits increased over the past year and that a fall in business confidence has yet to bottom out, Eskelund said. About 500 member companies responded to the survey between mid-January to mid-February. 'It is just very difficult for everyone right now in an environment of declining margins,' he said.
