Abhishek Kumar on Mutual funds in the Media

Abhishek Kumar shared this client case in a LinkedIn post that the article draws on. He explained that the fix was simple: give every rupee a goal, keep an emergency fund, sort out insurance first and add equity gradually for retirement.

Abhishek Kumar explained how pure pharma exposure differs from broader healthcare and the trade-offs of large-cap, mid and small-cap and global tilts. He suggested using three- and five-year rolling returns and maximum drawdown.

Abhishek Kumar pointed out that heavy bets on a few sectors make a fund more volatile and that credit risk in the debt portion can weaken downside protection. He suggested comparing rolling risk-adjusted returns over full cycles and holding such funds for at least three to five years.

Abhishek Kumar cautioned investors not to rely on a brand ambassador's credibility. He advised reading product documents and costs, checking return claims with the verification agency, confirming a finfluencer's SEBI registration and avoiding trades based on chat-group tips.

Abhishek Kumar pointed out that running a PMS would likely mean more compliance work than the RIA model, since PMS managers handle client money directly and must report to SEBI in more detail.

Abhishek Kumar pointed out the costs and limits of these funds, including forex and remittance charges, Schedule FA disclosure, short track records and lower liquidity. He advised against frequent small remittances and explained how investors' gains are taxed.

Abhishek Kumar said these funds may suit investors who want disciplined rebalancing but not those chasing momentum rallies. He cautioned that broader universes raise volatility, suggested limits by risk profile and a horizon of five to seven years.

Abhishek Kumar explained how stock SIPs work through brokers, and said fund SIPs generally suit beginners and hands-off investors, while stock SIPs suit only experienced investors able to analyse companies and handle concentrated portfolios.

Abhishek Kumar cautioned that momentum funds can fall sharply when trends reverse or markets go sideways. He said they suit seasoned investors who can bear high risk over a long period, ideally as a satellite holding rather than the core of a portfolio.

Abhishek Kumar said research shows waiting for dips tends to lag a systematic plan because markets rise more often than they fall, so idle cash has a cost. He suggested that salaried investors automate their investing to remove emotion.

Abhishek Kumar pointed out that these funds still face equity volatility in early years and interest-rate swings later, and said investors should check whether they may need the money within the three-year exit-load period.

Abhishek Kumar said the purchase limits may aim to curb speculation or reflect trouble sourcing physical gold, and suggested existing investors who are overweight trim gold while new investors build exposure gradually through SIPs.

Abhishek Kumar cautioned that treating a ten-year equity SIP as a sure profit is an oversimplification, explaining that a long horizon lowers the chance of a loss but equity funds remain market-linked.

Abhishek Kumar said that, over long periods, Indian equity data shows SIP frequency has little effect on final outcomes, and suggested aligning SIPs with income, noting that daily SIPs add operational work without a clear benefit.

Abhishek Kumar, in a LinkedIn post cited by Mint, called the push to move large parts of SIPs to US funds manufactured panic. He said 5 to 15 per cent in international equity is reasonable and that rupee goals call for a rupee core.

Abhishek Kumar said people without a regular income can pause new long-term investments until they find work, and that discretionary spending should be cut sharply from the first day of unemployment.

Abhishek Kumar pointed out that US drug-pricing policy and high concentration add risk, said these funds suit investors who understand sector cycles, and suggested limiting total sector exposure to below 10%.

Abhishek Kumar said investors using gold to diversify have moved towards financial forms of gold, while households that keep gold for savings or a fallback in hard times, especially in rural India, still largely hold it in physical form.

Abhishek Kumar said continuing regular investments matters so that portfolios can benefit when markets recover, and spoke of adjusting holdings in line with one's target asset allocation in uncertain times.

Abhishek Kumar said investors are choosing the discipline of funds over the stress of timing stock purchases. He expects the trend to continue, with growing use of index funds and multi-asset products.

Abhishek Kumar said competition for school admissions is one reason parents seek such classes. He suggested treating these costs as fixed spending, building a sinking fund, and planning six to twelve months ahead using recurring deposits or liquid funds.

Abhishek Kumar pointed out that flexicap investors place a lot of trust in the fund manager's calls, so poor decisions can mean long underperformance, and cautioned that many investors overlook overlap with their other funds.

Abhishek Kumar said the jump in silver and gold had pushed portfolios well away from their intended asset mix, and suggested booking partial profits and moving the money into equity and shorter-duration debt funds.

Abhishek Kumar explained that high oil prices raised transport and packaging costs, squeezing the margins of consumer companies. He said stable raw material prices and supply chains could help margins recover, and that these funds give concentrated exposure to domestic growth.

Abhishek Kumar said investors may stay if their view on India's credit growth holds, suggested exiting if overweight or if goals are met early, and recommended staggered entry with a five- to seven-year horizon.

Abhishek Kumar said his firm has received many queries about life cycle funds, and noted that, unlike the lock-in schemes being scrapped, they let investors move their money when needed.

Abhishek Kumar said investors looking for quick gains or unable to bear long periods of underperformance should stay away from value funds. He suggested not holding both types if their portfolios overlap, and looking at execution style rather than the label.

Abhishek Kumar said the choice should start with opportunity cost and the reason for buying, with self-use often favouring a home. He cautioned about debt levels, emergency funds and low rental yields, and suggested building an equity corpus first.

Abhishek Kumar said fund houses may be holding back because the small Reit market exposes them to liquidity risk, and cautioned that the limited choice and low assets under management can bring concentration and liquidity risk for investors.

Abhishek Kumar explained that the periodic table shows mean reversion at work, since the strongest asset in one year often slips the next, and said diversification smooths volatility while avoiding concentration in a lagging asset.

Abhishek Kumar said rules bar him from price forecasts, called equities a productive long-term asset, cautioned that silver is the most volatile, and suggested limiting gold to 10% and silver to 5% of a portfolio.

Abhishek Kumar explained how capital gains from equity funds and hybrid funds are taxed, depending on their equity share and how long the units are held.

Abhishek Kumar explained that gifting does not reset the holding period, that gains on gifts to a spouse or minor child are clubbed back with the giver's income, and that gifts above ₹50,000 to people outside close family are taxed as the receiver's income.

Abhishek Kumar explained the rules to India Today, including that the holding period follows the original purchase date and that clubbing applies to gifts to a spouse or minor child. He cautioned that gifts can backfire and stressed proper documentation such as a gift deed.

Abhishek Kumar said a proper assessment of risk profile should come before any change in allocation, suggested more liquid, low-risk assets and a larger emergency fund if income fell, and said the 100-minus-age rule should not guide allocation.

Abhishek Kumar cautioned that concentrated bets damage most portfolios, said quality does not justify any price, warned against herd behaviour, and suggested spreading money across several companies for the long term.

Abhishek Kumar explained that prices rising far faster than earnings, with price-to-earnings ratios at historic extremes, can signal a bubble. He cautioned that such phases draw people into margin trading, where leverage magnifies losses as well as gains.

Abhishek Kumar suggested checking the fund manager's record and one's own allocation needs before investing, and cautioned about higher costs than a self-built mix of funds and the tax impact of short holding periods.

Abhishek Kumar explained the pre-open price discovery process, said grey market premium plays no part in the official listing price, and cautioned that leveraged HNI bids can make oversubscription look stronger than real demand.

Abhishek Kumar suggested splitting a ₹5,000 monthly SIP between an index fund and a flexi-cap fund, investing in equity only with at least a five-year horizon, continuing SIPs in downturns and raising them each year as income rises.

Abhishek Kumar said the timing of the founders' move could signal limited conviction and a wish to reduce accountability. He explained that offer-for-sale proceeds go to selling shareholders rather than the company, and said market mood would also shape demand.

Abhishek Kumar said he does not advise thematic funds because they often rest on a story, and suggested investors avoid the hype, focus on long-term investing and diversify.

Abhishek Kumar, in a LinkedIn post cited by India Today, urged people to tell their families what they own, add nominations to every account and policy, document and register their wills, and name an executor.

Abhishek Kumar, who had earlier spoken to the outlet, said the valuation would take roughly 300 years of current profit to justify, called it window-dressing, and said retail investors should avoid businesses they do not understand.

Abhishek Kumar said SEBI's caution was timely, as digital gold buyers have no investor protection under SEBI if a platform defaults. He pointed out counterparty and operational risks and suggested considering a move to regulated gold products.

Abhishek Kumar said passive funds let investors earn market-linked returns from a diversified basket of stocks at very low cost, since costs and diversification shape a portfolio's returns and risk.

Abhishek Kumar, in a LinkedIn post the outlet cited, pointed out that the example mixed real and nominal figures, and suggested comparing all amounts either in today's rupees or in actual rupees.

Abhishek Kumar said the fund house's founder was ahead of his time in offering direct plans before investors knew of them, but pointed out that relying on the product alone did not work, and that larger fund houses had already won market share by the time it added regular plans.

Abhishek Kumar explained that absolute returns ignore time and suggested XIRR for SIPs, along with risk ratios, costs and benchmark comparisons. He cautioned against relying on star ratings and suggested reviewing funds at least once a year.

Abhishek Kumar said these funds suit investors whose risk appetite is conservative or moderate and who have a horizon of at least five years. He suggested checking that a fund keeps at least 65 per cent in equity so it is taxed as an equity fund, and avoiding funds with weak downside protection or heavy concentration in one asset class.

Abhishek Kumar explained that high crude oil prices and a wider trade deficit raise import costs and weigh on the rupee. He pointed out that a weaker rupee also makes foreign travel and overseas education costlier.

Abhishek Kumar pointed out that tax is deducted at source once annual dividends cross ₹10,000, even for those under the ₹12 lakh limit. To avoid this, he said, eligible investors can file Form 15G or 15H with the fund house.

Abhishek Kumar said the higher visa cost could push more work offshore over time. He suggested staying invested with a three- to five-year view and, for new investors, entering in stages.

Abhishek Kumar said the change does not alter the core trade-off: direct REITs offer largely tax-free distributions, while funds suit those wanting diversification and SIPs. He also pointed out that India's REIT market is small and thinly traded.

Abhishek Kumar cautioned that companies can change their dividend policies, said these funds can suit retirees and conservative investors, and suggested keeping them in the satellite part of an equity portfolio with a horizon of five years or more.

Abhishek Kumar said children's funds may suit parents wanting disciplined, goal-based investing who can accept less flexibility, while regular funds suit experienced investors who want control. He cautioned that many such funds are bought on emotion rather than a financial plan.

Abhishek Kumar explained how capital gains on equity-oriented SIFs are taxed and pointed out that investors pay tax only on redemption, since trading inside the fund does not create a tax event for them.

Abhishek Kumar cautioned that US rate hikes, a stronger dollar or large institutions booking profits could trigger a sell-off. He pointed out that crypto is not legal tender in India and explained the tax rules: a flat 30% tax plus cess, 1% TDS above ₹50,000, and no set-off of losses.

Abhishek Kumar cautioned that investors who prefer simple strategies should stay away from these funds. He suggested keeping them a small, non-core part of the equity portfolio, holding for three to five years, and waiting for a track record to build.

Abhishek Kumar wrote this article for freefincal, offering a data-based view that the small shortfall of index funds from costs is by design, and suggesting a core-satellite approach with low-cost index funds at the core.

Abhishek Kumar said investing directly overseas under the LRS involves high costs and complex tax compliance, and suggested GIFT City retail fund structures could help investors diversify until the RBI raises the cap.

Abhishek Kumar wrote this guest article for freefincal, explaining how GIFT City funds give resident investors another route to global equities and suggesting such funds be weighed within a goal-based plan rather than chosen in haste.

Abhishek Kumar said the structure offers a practical way to reach global equities when most domestic funds cannot invest abroad, but suggested watching the new fund's performance for a while before investing, as it has no track record.

Abhishek Kumar, in a LinkedIn post cited by India Today, called the advice reckless, explained that no one can promise fixed returns from mutual funds, and cautioned against touching PF savings except in an emergency.

Abhishek Kumar said corporate SIPs offer a disciplined way to invest through salary deductions, but cautioned that scheme choice may be limited, tied-up fund houses gain an edge, and money may be at risk if an employer deducts but fails to pay it in.

Abhishek Kumar said SIPs give the benefit of rupee-cost averaging while leaving room for opportunistic purchases in downturns, and cautioned that speculative buying should not take the place of analysis.

Abhishek Kumar, whose LinkedIn post explaining the new process the outlet cited, said the facility was long overdue and cautioned that tax liability depends on whether the move is recorded as a gift or a transfer.

Abhishek Kumar advised investors to plan their cash needs around the 10-day lock-in on transferred units, noted the recipient's cost of acquisition depends on whether it is a transfer or a gift, and said only units free of liens can be moved.

Abhishek Kumar said higher defence spending could lift revenue and profit for sector companies and add diversification, but cautioned that these funds could fall if spending slows or valuations correct, and that conservative investors should avoid them.

Abhishek Kumar said such platforms act as market makers by supplying liquidity through liquid funds, and pointed out that they would need more fund house tie-ups and bank integrations to grow.

Abhishek Kumar said silver's long-term outlook is supported by industrial demand and limited supply, and suggested a small allocation within a long-term portfolio for diversification. He favoured silver ETFs for their liquidity, low cost and ease of trading.

Abhishek Kumar suggested selling gold only to meet a need for funds or to rebalance, and shared pointers on choosing gold ETFs, buying sovereign gold bonds on exchanges, and weighing early redemption against holding to maturity.

Abhishek Kumar said savings accounts should mainly hold money for running expenses, not serve as a savings tool. He suggested keeping the minimum balance, a month of spending and an emergency buffer, and setting any sweep threshold with these in mind.

Abhishek Kumar said investors should check how a multi-asset fund divides its money across asset classes, so that it fits their own risk profile and goals.

Abhishek Kumar said these loans can suit investors facing short-term emergencies or cash crunches, suggested keeping extra units or cash ready for margin calls, warned against using them for impulse buys, and advised keeping an emergency fund.

Abhishek Kumar cautioned that overseas limits and dilution mean such funds may eventually hit a ceiling. He suggested the liberalised remittance scheme for direct global investing, while noting its risks without proper research.

Abhishek Kumar pointed out that high-beta funds gain more in rallies but fall harder in downturns. He said long-term investors should hold their smallcap positions, only those with near-term needs should exit, and new entrants need a horizon of at least seven years.

Abhishek Kumar said a product with a three-year lock-in does not suit someone who needs money for a goal in two years. He cautioned that investors often pick for the immediate tax break and that agents may push commission-paying products.

Abhishek Kumar explained the three main changes to the EDLI scheme and listed the documents nominees need to file a claim.

Abhishek Kumar, founder of SahajMoney, said the data showed no significant outperformance by portfolio management services over mutual funds, and that the worst PMS returns fell well below the worst mutual fund returns in the same category.

Abhishek Kumar said many old physical folios were opened before online investing, making them hard to keep track of. He described Mitra as a useful step that pulls data from different fund houses into one portal where investors can check for unclaimed folios.

Abhishek Kumar pointed out that the quant scheme had small assets and had lagged the wider flexi-cap category, and said the fund house was probably trying to consolidate resources and cut operating costs.

Abhishek Kumar said the quant scheme was small and had lagged its category, so the fund house likely wanted to cut costs. He explained that a merger helps investors if it lowers expense ratios, and suggested that anyone exiting do so in the load-free window.

Abhishek Kumar, founder of SahajMoney, said the stress test data showed worsening liquidity in small-cap funds, noted that mid-cap funds had better liquidity yet inflows kept going to small caps, and said regulators faced pressure over the gap between fast growth and exit liquidity.

Abhishek Kumar suggested that investors whose gold holding has risen above 15% of their portfolio consider rebalancing, and that booking some gains could help those who need money for short-term goals.

Abhishek Kumar said the change may lead some investors to move away from equity-oriented funds held for tax reasons, and suggested a bucket approach for those near retirement, with debt for near-term needs and equity for long-term growth.

Abhishek Kumar cautioned that slower GDP growth could hurt these funds and that sector funds can be volatile. He suggested capping exposure at 10–15% of the equity portfolio with a three-to-five-year horizon.

Abhishek Kumar, founder of SahajMoney, said the new private credit AIF could suit investors willing to take higher credit risk for at least six years with ₹1 crore to invest, and noted a similar strategy had hurt small investors in the manager's earlier debt funds.

Abhishek Kumar cautioned that the investment idea behind a new fund may not work out as the fund house expects, and warned against buying new fund offers for quick gains because of heavy marketing.

Abhishek Kumar cautioned that a sudden VRS payout is often spent quickly, and suggested splitting the corpus into 10-year buckets, keeping money for the first decade of retirement in debt instruments with planned withdrawals.

Abhishek Kumar said investors were stuck with limited choices until the RBI eases its limits, and that pressure on the rupee made an early relaxation unlikely.

Abhishek Kumar pointed out that using the LRS route to buy overseas stocks directly brings high costs and tax compliance issues. He said investors are stuck until the RBI eases the limit, which he did not expect soon given pressure on the rupee.

Abhishek Kumar said these funds suit investors seeking diversification across low-correlated assets to cut portfolio risk, and cautioned that tax efficiency should be a side benefit rather than the main reason to invest.

Abhishek Kumar explained that currencies of countries with stronger productivity, smaller trade deficits and lower inflation tend to hold up, noted that a weaker rupee makes gold costlier, and pointed to US equity funds for geographic spread and gold mutual funds for ease and liquidity.

Abhishek Kumar explained that infrastructure companies rely on low-cost foreign capital and are now hurt by rising rates abroad, and said PSU stocks are under pressure because earnings have not kept up with expectations.

Abhishek Kumar said long-term investors in his experience prefer an investment frequency that matches how often they earn, and pointed out that the outcome of trying daily or weekly SIPs in equity cannot be known in advance.

Abhishek Kumar explained that asset allocation rests on spreading money across asset classes, and that holding assets with low or negative correlation lowers overall portfolio risk.

Abhishek Kumar, founder of SahajMoney, described moving money to safer options two to three years before a goal, urged not selling in haste when a fund manager changes, and suggested redirecting new instalments to restore asset allocation instead of selling.

Abhishek Kumar, founder of SahajMoney, said SIP frequency should match how often income arrives, so monthly suits most salaried investors, and cautioned that the same study over a different period could give different results.

Abhishek Kumar said investors can step up SIPs at any time if it stays in line with their risk-based asset allocation, and cautioned against over-committing. He suggested pausing equity SIPs once the desired equity share is reached, but not during market downturns.

Abhishek Kumar was credited, along with a consulting firm, as a source for the article's tables setting out holding periods and tax rates on mutual fund gains before and after Budget 2024.

On CNBC-TV18's MF Corner, Abhishek Kumar, founder of SahajMoney and SEBI Registered Investment Adviser, and Kavitha Menon of Probitus Wealth discuss momentum mutual funds and the pros and cons of investing in them.

Abhishek Kumar, founder of SahajMoney, explained how a duplicate order ID led the platform to show units the fund house never issued, and suggested investors check their holdings through a monthly consolidated account statement from the registrar rather than relying on the app.

Abhishek Kumar pointed out that, as with other thematic funds, manufacturing funds carry concentration risk.

Abhishek Kumar explained that debt returns track inflation, and that an unstable coalition might spend more, widen the fiscal deficit and push rates up, while a stable one can aim to cut the deficit.

Abhishek Kumar cautioned that sector funds can go wrong for investors who are not nimble, said most people are better off in diversified funds, and suggested capping any sector fund at 10% of the equity portfolio with a five to seven year horizon.

On CNBC-TV18's MF Corner, Abhishek Kumar of SahajMoney speaks with Sonal Bhutra about when to invest in ELSS funds: at the start of the financial year or towards its end.

Abhishek Kumar, founder of SahajMoney, described a client who completed re-KYC with PAN and a driving licence, got 'registered' rather than 'validated' status, and could use existing folios but not open new ones.

Abhishek Kumar cautioned against REITs with thin trading volumes or assets concentrated in one location, and suggested checking lease expiry, portfolio quality, the record on finishing projects and occupancy.

Abhishek Kumar suggested rebalancing regularly so small and midcap holdings stay within set limits. He also said money for a goal one or two years away should be moved from equity funds into debt instruments.

Abhishek Kumar explained that smallcap funds hold more stocks outside the 500 largest companies, and these have rallied sharply. He suggested keeping enough in fixed income near a goal, and only money that can stay invested for five to ten years in these funds.

Abhishek Kumar cautioned that ELSS returns can swing widely, so these funds may not suit investors who dislike risk. He said people willing to take risk and saving for long-term goals could consider them.

Abhishek Kumar suggested investors keep thematic funds such as this to no more than 10% of their portfolio, so that a theme that fails to play out does not cause a large fall in the overall portfolio.

Abhishek Kumar, SEBI RIA and founder of SahajMoney, noted that five sectoral-thematic NFOs raised ₹2,556 crore in August, said well-timed entry and exit can pay but a failed sector bet drags the whole fund, and suggested investors with low risk tolerance stay away.

Abhishek Kumar said getting the interest rate cycle right is key with these funds. He explained that once the RBI brings inflation under control and stops raising rates, the cycle turns against them.

Abhishek Kumar, founder of SahajMoney, wrote this column weighing passive against active funds, drawing on SPIVA India data and research on fund-manager overconfidence to argue that investors should favour passive funds until data shows otherwise.

Abhishek Kumar is not named; the article cites SahajMoney research finding that a direct plan's 1% lower expense ratio would leave an investor about 25% more over 30 years than a regular plan, on assumed growth and cost figures.

Abhishek Kumar is not named; the article cites an illustrative calculation by his firm SahajMoney estimating that, at 10% annual growth with expense ratios of 2% and 1%, a direct plan ends about 25% ahead of a regular plan over 30 years.

Abhishek Kumar pointed to cases during the pandemic when hospitals asked for cash deposits, showing why an emergency fund helps. He added that the fund also shields long-term investments from forced selling at a loss.