Regarding banking and psu mutual fund

Regarding banking and psu mutual fund

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Deal Cadet
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Why these are decreasing drastically since 2 days? Any experts please help

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9 Dimers
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Deal Cadet
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Anyone please reply

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Deal Cadet
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Please tag Dimers who know this

Roger federer photos 9 150x150
Deal Subedar
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yep even i seen it

my tier 2 value went down from 163200 to 161800.

in last 2 days.

this is only once i seen in Last year continuos 2 days of decline in value of investment.

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Deal Subedar
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rbi paused repo rate

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Deal Subedar
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Bro, Who advised you to go for Sector Specific Mutual fund scheme?

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BubbleBoyChickenLittle wrote:

Bro, Who advised you to go for Sector Specific Mutual fund scheme?

It was showing good returns since last year so I invested

Missing
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lokeshgr wrote:

Please tag Dimers who know this

@Pankaj did that for you..
In future you can also ask/call some of the people ftom this thread https://www.desidime.com/forums/dost-and-dimes/...
Although its scope is usually limited to secondary market direct equity instruments, it does have regulars from investing fraternity

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Deal Subedar
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aruhere wrote:

@Pankaj did that for you..
In future you can also ask/call some of the people ftom this thread https://www.desidime.com/forums/dost-and-dimes/...
Although its scope is usually limited to secondary market direct equity instruments, it does have regulars from investing fraternity

Suspended 🥺🥺🥺

Babys%2001
Deal Subedar
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Never invest in thematic/sectoral fund unless u r expert & that too in psu fund, never !!!!

Babys%2001
Deal Subedar
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Never invest in thematic/sectoral fund unless u r expert & that too in psu fund, never !!!!

Hamster
Entertainer
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Investing in a debt fund requires much more knowledge then in Equity funds.

There are 2 risks involved in a debt fund, credit risk and interest rate risk. Credit risk arise when someone who took loan from market say dhfl and doesn’t pay backs or has rating revision due to bad condition of company, it’s credit worthiness will fall and hence it’s credit papers value will fall hence your mutual fund will suffer. higher the yield (rate of return given by company), higher the risk (because they want money and have to pay more) and higher the returns (because loan at high rates are given) but if they fail to pay, all money is gone.

In psu and banking fund (or gilt fund) interest rate risk is involved since they are backed by govt and chance of defaulting or credit rating going down is minimal to impossible. Interest rate risk is when you have a long term loan at say 9% and lets say rbi increases rate or hints on increasing or there is inflation looming around, same 9% loan will become say 9.5% hence what price you were paying will increase. It runs vice-versa viz interest. if interest rates rises you suffer loss and if it goes down you make profit. there are other things attached like average maturity of fund, mix of papers in fund extra. but in nutshell if bond rates rise, your nav will go down and if bond rates goes down, your nav will increase.

Now rbi had a bi-monthly meeting and they had a say on inflation and future stand on rising rates (didn’t do anything this time). so those who thought rbi will lower down rates, bought back papers on loss at higher price and those who expect inflation will hurt rates are quoting higher rates too thus fall in nav and lastly current buyers were not ready to buy at low price and quoted high price (remember vice-versa effect).

also much is effected by average maturity of fund. highest loser was edelweiss which has 9.29 years fell most and sundaram which has 1.64 fell least.

in total, don’t fly plane if you aren’t a pilot. keep it simple, invest in liquid fund or a overnight fund or some safer money market fund instead of running for returns. why do you guys forget debt funds are for protecting your money and not for generating good returns?

go to freefincal.com and search old posts on how to invest in debt funds if you guys still want to play with fire.

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Deal Subedar
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marketdimer wrote:

Investing in a debt fund requires much more knowledge then in Equity funds.

There are 2 risks involved in a debt fund, credit risk and interest rate risk. Credit risk arise when someone who took loan from market say dhfl and doesn’t pay backs or has rating revision due to bad condition of company, it’s credit worthiness will fall and hence it’s credit papers value will fall hence your mutual fund will suffer. higher the yield (rate of return given by company), higher the risk (because they want money and have to pay more) and higher the returns (because loan at high rates are given) but if they fail to pay, all money is gone.

In psu and banking fund (or gilt fund) interest rate risk is involved since they are backed by govt and chance of defaulting or credit rating going down is minimal to impossible. Interest rate risk is when you have a long term loan at say 9% and lets say rbi increases rate or hints on increasing or there is inflation looming around, same 9% loan will become say 9.5% hence what price you were paying will increase. It runs vice-versa viz interest. if interest rates rises you suffer loss and if it goes down you make profit. there are other things attached like average maturity of fund, mix of papers in fund extra. but in nutshell if bond rates rise, your nav will go down and if bond rates goes down, your nav will increase.

Now rbi had a bi-monthly meeting and they had a say on inflation and future stand on rising rates (didn’t do anything this time). so those who thought rbi will lower down rates, bought back papers on loss at higher price and those who expect inflation will hurt rates are quoting higher rates too thus fall in nav and lastly current buyers were not ready to buy at low price and quoted high price (remember vice-versa effect).

also much is effected by average maturity of fund. highest loser was edelweiss which has 9.29 years fell most and sundaram which has 1.64 fell least.

in total, don’t fly plane if you aren’t a pilot. keep it simple, invest in liquid fund or a overnight fund or some safer money market fund instead of running for returns. why do you guys forget debt funds are for protecting your money and not for generating good returns?

go to freefincal.com and search old posts on how to invest in debt funds if you guys still want to play with fire.

Been saying it : why do you guys forget debt funds are for protecting your money and not for generating good returns?

But everyone is a Pilot. sunglasses

Missing
Deal Lieutenant
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Almost all debt funds took a hit due to recent defaults of IF&FS, DHFL, Reliance Commercial Finance, Reliance Capital and Reliance Home Finance.
Almost all PSUs manage their own Employee PF investments and practically every PSU PF trusts had exposure to above. Now, as per terms of EPFO, in case they default, the PSU would have to make good the loss.

Missing