DSP Midcap Fund and DSP Small Cap fund are toppers in their respective categories in the last five years. However, their short-term performance is a concern for most investors. Vinit Sambre, Head of Equities, DSP Mutual Fund, spoke to Avneet Kaur of ETMutualFunds.com, about his investment philosophy, turnaround performance of schemes, outlook for the market, among others. Edited interview. DSP Midcap Fund, the third largest scheme in the category is topping the mid cap category in the last five years with 12.39% returns. DSP Small Cap Fund has also generated decent returns while outperforming the category average in the same period. In fact, the scheme is a topper in the 10-year period. How did you achieve this performance? The performance is the outcome of following our core investment philosophy while selecting companies across different sectors. We look for companies which are category leaders, have the potential to outgrow the overall market growth, run efficiently in terms of … [Read more...] about Following our core philosophies helped the turnaround of most funds, says Vinit Sambre, DSP Mutual Fund
Long term gains tax rate
Email By business reporter Stephen Letts Posted December 05, 2019 09:23:27 Photo: We're saving more and spending less, and that's a problem. (REUTERS/Thomas White) Related Story: If you're saving like Gretta, you could be accidentally hurting the economy Related Story: Home buyer 'FOMO' contributes to Reserve Bank no-go Related Story: The ASX is breaking records but that doesn't mean the economy is in good shape Map: Australia The private sector is on strike.Households are not spending and businesses are not investing.It's a secondary boycott where the Australian economy is being hamstrung by a protest about wages, job security and just about anything in-between."Bloody ingrates," various mandarins within the walls of Treasury and the Reserve Bank are probably muttering.Their frustration is almost palpable. Australian businesses and home-owners have just had their borrowing costs slashed with three interest rate cuts.Taxpayers — almost 9 million of them — … [Read more...] about Consumers and businesses are on strike and that’s dragging the economy down
One potential source of recovery could be the rural demand coming in the next couple of quarters, hopefully. We do not know when, but certainly whenever we say recovery, it could be sharper than we think, says Rajat Jain, CIO, Principal AMC. Excerpts from an interview with ETNOW. Why is there this disconnect between the economic headlines and what the Nifty seems to be doing to those 10-15 odd stocks?Yes, you have hit the nail on the head. It has been so very polarised. While the narrow largecap, the Nifty or the top 100 probably are at an all-time high, the midcap index is probably like 20-25% below its all-time high. The smallcap index is about 30-35% below its all-time high. So, while the top 8-10-12 stocks have driven the markets, it has not been a very across-the-board sort of movement. It is not something which is unique to India. The US data also shows that the top 10 tech names have given all the gains this year to the S&P 500. A lot of the other stocks have not done as … [Read more...] about Expect a sharp economic recovery in a quarter or two: Rajat Jain, Principal AMC
'My sense is that we should be braced for a correction.' IMAGE: Investors follow the Sensex's movements at the BSE in Mumbai. Photograph: Reuters Indian markets faced a significant sell-off a day after the Budget, with the Nifty down 2 per cent and the mid-cap and small-cap indices dropping by more than 3.5 per cent. Mid- and small-cap indices are now already down almost 10 per cent for the year. With the overnight decline in global markets, there was continued selling the week after the Budget as well. Why are markets selling off in India? Is it the Budget, global issues, or something else altogether? As for the Budget, there is the issue of the long-term capital gains tax. Frankly, I do not think this 10 per cent tax will fundamentally alter flows into India. Yes, expected realised returns will reduce, and this can hurt flows on the margin, but investors allocate capital to make money. If India and our companies can deliver strong cash flows and growth, with good capital efficiency, … [Read more...] about The Stockmarket: What Next?
'Shocking' was the operative word financial markets and economists used to react to the outcome of the Reserve Bank of India's latest money policy review. After the second quarter GDP growth rate plummeted to a six-year low, and given the central bank's steadfast focus on growth revival in the past five reviews, financial markets were quite sure that the Shaktikanta Das-led Monetary Policy Committee (MPC) of the central bank would ease further. But the central bank decided to pause. A sudden hawkish turn, was it? No. It's a “temporary pause” till the Union Budget, Governor Das hinted. Das said RBI was against “mechanically bringing down the policy rate,” but wants to wait and watch “how the combined impact of the monetary easing undertaken all through past months and the numerous measures announced by the government to revive growth unfold and play out.” The MPC also dropped enough hints that it might have only delayed another rate cut till the … [Read more...] about ‘Shocking’ pause? No, RBI is just awaiting signals from FM’s Budget