Morningstar Financial News

FPIs bought Indian equities worth Rs 1,433 crore thus far in November, mainly due to the decline in US treasury bond yields and crude oil prices. Foreign Portfolios Investors (FPIs) were net sellers till November 15. However, they reversed the selling trend by infusing money during November 16-17, data with the depositories showed.

The 4% rule, which states that you can safely withdraw 4% of your retirement savings each year and adjust for inflation, has been the gold standard for retirees asking how to make their money last until they die. However, with the Fed holding interest rates artificially low for years, the rule has been put into question with some stating it should be 3% or even lower. Now, Morningstar is telling retirees that «The 4% rule may finally hold true as a safe starting withdrawal rate when considering a 30-year time horizon.» This is the firm's highest safe withdrawal percentage since it started the research in 2021. The firm's findings suggest that new retirees using the rule have a 90% probability of still having funds remaining after the 30-year period.

If current gains hold, shares will have nearly doubled since late July after the former Mattel executive was appointed to revive the once sought-after brand. Gap's third-quarter earnings release Thursday showed significant inventory destocking, even as its holiday-season forecast disappointed. Dickson worked at Mattel for two decades and was responsible for reviving the Barbie brand, which re-entered the cultural zeitgeist in 2023 following the success of the «Barbie» movie. Investors are pinning their hopes on Dickson's efforts to bring in trendier clothing at Gap's Old Navy brand, with Morningstar analyst David Swartz saying the earnings showed «something good happening for the first time in a long time maybe.» «Gap has been in bad shape for so long that anybody who brings some sort of positive outlook to the company would be good at this point,» Swartz said. Old Navy's comparable sales rose 1% in the third quarter, their first increase in 10 quarters, after the brand languished last year due to out-of-sync inventory. «Old Navy gained market share, an encouraging early proof point that work to improve both product assortment and brand messaging» were driving results, Gap Chief Financial Officer Katrina O'Connell said. The company, like major retailers Walmart and Target, noted inventory levels have declined from last year's peak, which had been a significant overhang for several quarters. However, Gap joined other retailers in sounding a cautious note on spending, heading into the all-important shopping season. Executives also alluded to a «longer recovery» time for its other brands Banana Republic and Athleta which have seen «product misfires» and weak «retail execution».

Climate scientists have long said that eating more plants and fewer animals is among the simplest, cheapest and most readily available ways for people to reduce their impact on the environment

thematic funds cut their returns by nearly two-thirds through badly-timed trades, a report by Morningstar Manager Research showed. Funds that tend to focus on specific themes, such as climate change or artificial intelligence, have drawn investors over the last few years, more than doubling their assets under management since 2018, Morningstar's data showed. However, while the average return on thematic funds was an annualized 7.3% over the five-year period through June 2023, investors saw just a 2.4% return, the Morningstar report by senior analyst Kenneth Lamont and director of manager research Matias Mottola showed.

Investors lost more value in focused funds such as those tracking the Morningstar broad themes technology or physical world, compared with more diversified broad thematic peers.

Today’s “fair value” estimate of the US 10-year Treasury yield continues to suggest that the current market rate is unusually lofty and that the spread will soon narrow. Yesterday’s sharp drop in the 10-year yield (triggered by upbeat inflation news for October) suggests that the process of normalizing has started.

The collapse of TPG Telecom’s $6.3 billion deal with Vocus Group shows the difficulty of spinning off telecommunications infrastructure from businesses that sell services to consumers, analysts say.

One of the most controversial numbers in financial planning, 4%, is back — but the “rule” that follows it less so.

For those wondering if now is a good time to retire, here’s some encouraging news: The 4% rule is back. Thanks to higher interest rates and bond yields, it is likely safe for new retirees to spend 4% of their nest eggs in their first year of retirement and then to adjust that amount for inflation in subsequent years, according to a new analysis from Morningstar released Monday. Though 4% had long been the gospel of retirement math, retirees in recent years were warned that starting at that spending rate raised the risk of running out of money.

Equity funds with the most diversified portfolios How markets are placed The benchmark BSE Sensex lost over 1,637 points in October 2023, which was the highest monthly absolute loss in 2023. Though the markets have made some recovery in November due to falling crude oil prices and softening of US bond yields, they are expected to stay volatile over the next few months. A Prabhudas Lilladher Diwali Picks report expects the next few months to be volatile due to the El Nino impact on inflation, global volatility in commodities and interest rates. “The strong resilience of the US economy, despite high inflation, is likely to keep policy rates high, which can impact FPI inflow in the near term,” it states. Equity fund concentration ET Wealth tried to study the concentration of equity diversified funds, in terms of their respective average concentration of AUM in the top five stocks and sectors, over the last year.

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₹841 crore in October, way higher than ₹175 crore in the preceding month. Apart from the inflows, the asset base of Gold ETFs also surged in the period under review, as per data from the Association of Mutual Funds in India (Amfi). Meanwhile, pre-Diwali Dhanteras buying of gold and silver in India, the world's largest gold consumer, kick-started on a positive note on Friday on recovery of consumer demand with the softening of gold prices.

September’s growth was driven by a 0.2% expansion in services output, largely from professional, scientific and technical activities, as well as human health and social work activities.

The trust has continued to increase its stake in UK investment trusts, building new positions in Pantheon International and Princess Private Equity over the last year.

Gold Exchange Traded Funds (ETFs), which are considered a safe haven during uncertain times, and put in Rs 841 crore in October, way higher than Rs 175 crore in the preceding month. Apart from the inflows, the asset base of Gold ETFs also surged in the period under review, as per data from the Association of Mutual Funds in India (Amfi).

mutual funds in October jumped 42% over the previous month led by continued investor appetite for small-cap schemes. This marks the 32nd straight month of inflows into equity schemes in the wake of the record-breaking stock market rally. Debt mutual funds too witnessed inflows of ₹43,634 crore after the outflows in September, as corporate treasuries came back to liquid funds with October being the first month of the third quarter of the financial year.

By Patrick Wingrove and Bhanvi Satija

As Republican legislators in the US try to wipe ESG off the map, most global investors and executives are acting as though those efforts will ultimately fail.

The large share of U.S. consumers who have an individual retirement account but have balances that make retaining the services of an advisor unrealistic are the focus of a new solution.

By Ankika Biswas