The Indian stock market has been trading upside over the last seven sessions. The frontline indices—Nifty 50, BSE Sensex, and Bank Nifty—have risen to 2.90 per cent in this period. Amid the US Fed rate cut buzz after Jerome Powell’s speech at the Jackson Hole meeting, market experts expect a positive reaction from the Indian stock market on Monday. So, those planning to invest in equity mutual funds might face challenges in finding an ideal mutual fund option for their money in this rising stock market.
According to experts, medium- to long-term investors need not bother about the rising stock market, but those with a horizon for up to one year may think of some tweaks in their mutual fund investment. They said such tweaks might help them garner an extra one-to-one and half per cent return on their mutual fund’s investment. Asked about the mutual fund investment tweaks, they said that liquid, ultra-short-duration and short-duration funds could be chosen over other short-term investment tools to generate maximum return on one’s money. They said those with a one-year time horizon and fall in a higher income tax bracket can park their cash in Arbitrage Funds.
Mutual funds investment in the rising stock market
Speaking about the mutual fund’s investment tweaks that a mutual fund investor can apply while investing during a rising stock market, Pankaj Mathpal, MD & CEO at Optima Money Managers, said, “A medium to long-term mutual fund investor need not change the investment…
