Trust this mail finds you well,
Markets in July have impacted our MF portfolios to the extent of +7%, the reasons were Apr-Jun quarter results were encouraging than we had thought, fund flows from foreign institutional investors have been healthy.
The recent update from US central bank is they would keep their interest rates at zero for extended period – may be till 2022, this means central banks and governments across the world may keep supporting the economies till 2022. And there are deliberations in US to print additional 1 trillion more (75 lakh crores), some of these monies will find its way into Indian markets and can keep them elevated. Given this scenario we suggest diversifying investments across asset classes – equity (domestic and international), bonds & gold.
Suggested asset allocation and schemes
No lumpsum investments, Continue with SIPs and STPs – as per plan
25% of bank FD allocation to Banking & PSU debt funds for 1-3 years
Axis Banking and PSU debt fund/IDFC Banking and PSU debt fund
Max 10-15% allocation – for hedging against inflation/dip in equity
HDFC gold fund / SBI gold fund
Max 10-15% allocation – to diversify against country risk
PGIM Global opportunities fund – SIP/STPs only for 30 months minimum.
Most importantly set aside emergency funds for min six months, pay off high interest-bearing loans, equip with adequate risk covers – both life and health.
Stay safe, stay healthy.