3 Core Bond Funds for the Long Haul
Bonds provide an appealing return for much less risk than stocks.
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Bonds provide an appealing return for much less risk than stocks.
Value investors buy such stocks and wait for the market to discover these stocks. When the discovery happens, the stock prices will go up, and value investors make money. It may sound simple. But it is not very easy to execute. The market may take very long to discover these stocks and it may test your patience. The discovery may not happen at all. That is why value mutual funds are recommended to only sophisticated investors.
Rajesh Bhatia, CIO at ITI Mutual Fund, advises lumpsum investment in Balanced Advantage Funds, Value Funds, and ELSS Tax Saver Funds. He suggests systematic investment in mid and small-cap categories. India's weight in the MSCI index is increasing, attracting foreign capital inflow. The Indian corporate sector earnings have benefited from lower commodity prices.
Hargreaves Lansdown has added the Schroder Income fund to its Wealth Shortlist, after analysts were bullish on its “long-term performance potential”.