homephotos Newspersonal finance NewsTop mutual fund picks and strategies by IIFL amid coronavirus crisis

Top mutual fund picks and strategies by IIFL amid coronavirus crisis

SUMMARY

Equity asset class, despite several monetary steroids, is likely to remain under pressure as large economies will suffer heavily due to continued economic quarantine to fight the virus, said IIFL in a report. Since the investors’ focus has solely turned to COVID-19, the extent of carnage in the equities would now depend on the length of the economic lockdown required to contain the virus, it added. IIFL lists its top equity, debt and hybrid mutual fund picks during this crisis. It also suggests 3 different MF portfolio strategies for investors.

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By Pranati Deva  Apr 6, 2020 2:45:59 PM IST (Published)

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Equity Mutual Funds: IIFL recommends Mirae Asset Large Cap Fund, IIFL-focused equity fund, Kotak Standard Multicap Fund, Axis Midcap Fund, and SBI Small Cap Fund in this category.

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Hybrid Mutual Funds: Nippon India Arbitrage Fund, SBI Equity Hybrid Fund, Axis Equity Saver Fund, ICICI Pru Regular Savings Fund, and ICICI Pru Asset Allocator Fund are its top picks.

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Debt Mutual Funds: IIFL suggests that debt investors may consider short to medium duration funds with quality papers. It recommends Nippon India Liquid Fund, HDFC Short Term Debt Fund, ICICI Pru Corporate Bond Fund, IDFC Bond Fund - Medium Term Plan, and IDFC Bond Fund - Medium Term Plan.

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Aggressive Model Portfolio: The objective of the strategy is to generate substantial wealth in the long run for investors from a portfolio of aggressive equity-oriented mutual funds. The strategy takes a concentrated position in mutual funds across different market-cap and sectors and endeavors to strategically change allocation between different market-cap and sectors depending on change in the business cycles.

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Moderate Model Portfolio: The objective of the strategy is to generate long term capital appreciation for investors from a portfolio of equity-oriented mutual funds with moderate risk appetite, primarily to beat inflation without having too much volatility, IIFL noted.

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Conservative Model Portfolio: The objective of the strategy is to generate long term capital appreciation for investors from a portfolio of equity and debt-oriented mutual funds primarily to avoid any potential loss and preserve capital.

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