9 February 2026 | 1:50PM EST Economics Research WEEKLY FUND FLOWS | | | Global Fund Flows Summary | | | | --- | --- | --- | --- | --- | | | Millions USD | | % AUM | | | | 4wk sum | 4-Feb | 4wk avg | 4-Feb | | Equity | 47,035 | 34,622 | 0.04 | 0.12 | | Fixed Income | 77,198 | 22,953 | 0.20 | 0.24 | | of which: EM | -2,964 | -783 | -0.11 | -0.11 | | Money Markets | 35,802 | 87,193 | 0.08 | 0.79 | | FX Flows* | 118,276 | 27,716 | 0.20 | 0.18 | | | *Cross-border fund flows, excluding hard currency and FX-hedged ...

Core Insights - Global investing is a long-standing practice for Indian investors, deeply rooted in cultural behavior rather than a recent trend [1][2] - The intent behind investing in gold or overseas assets is to diversify risk and reduce dependence on a single currency [2] Investment Strategies - Geographic diversification is essential as different countries perform well at different times, highlighting the need for a varied investment approach [3][4] - Borate shared a personal investment example where a ₹5 lakh investment in a Nasdaq ETF grew to approximately ₹85–90 lakh, demonstrating the potential of global investments [5] - Access and structure are critical, as limitations imposed by the Reserve Bank of India create costs for investors in international feeder funds [6] Currency and Market Dynamics - Currency depreciation is a long-term structural issue, with the rupee's value significantly decreasing since independence [7][8] - Historical shifts in global equity market shares illustrate the importance of diversification, as countries like Britain have seen their market share decline dramatically over the past century [9][10] Routes to Global Exposure - Indian investors have several practical routes for global exposure, including domestic feeder funds, multi-asset funds, direct investments through the Liberalised Remittance Scheme, GIFT City retail funds, and Alternative Investment Funds [12][13][14] - GIFT City offers structural advantages, such as exemption from US estate tax and simplified compliance, making it an attractive option for global investments [15] Professional Investment Insights - Professional investors emphasize the importance of managing compliance and operational challenges when investing globally [21][25] - Home country bias is a common issue, and firms like PPFAS focus on globalized businesses to mitigate this risk [24] Risk Management - The discussion highlighted that uncertainty is a constant in investing, and managing risk is more important than timing the market [28][29] - Gold should not exceed 10% of a portfolio, as it cannot be fundamentally valued despite recent gains [29] Conclusion - The overarching message is that global investing is about recognizing currency risk, respecting market cycles, and building resilient portfolios that can endure over time [32]

Core Viewpoint - Personal finance expert Dave Ramsey advocates for mutual funds over real estate for generating passive income, emphasizing that real estate management is not passive and involves significant effort [1][2][3]. Group 1: Real Estate Management - Ramsey argues that the notion of real estate as a source of easy, passive income is unrealistic and primarily propagated by those without real ownership experience [3][4]. - He highlights that managing rental properties incurs substantial costs, such as maintenance and repairs, which can negate the perceived benefits of passive income [4][5]. - The expectation that a portfolio of debt-laden real estate will automatically generate wealth is criticized as a misconception, often held by inexperienced investors [5][6]. Group 2: Investment Strategies - Ramsey advises individuals to prioritize their careers, pay off existing debts, and consistently invest in retirement accounts like 401(k)s before considering real estate investments [3][6]. - He shares his personal experience of initially using credit to buy properties, which led to significant financial loss, underscoring the risks associated with leveraging debt in real estate investments [6]. - The current real estate market offers alternative investment options, such as institutional-grade access through firms like Lightstone DIRECT, which manages a portfolio exceeding $12 billion [5].

Core Insights - The article discusses the evolution of India's Union Budgets over the decades, highlighting key reforms and their impacts on the economy and governance [21][20]. Group 1: Historical Budget Reforms - Pranab Mukherjee's 1983-84 budget introduced performance-based grants to states, allocating Rs 300 crore based on program implementation rather than population [3][21]. - V.P. Singh's 1985-86 budget raised the personal income tax exemption limit from Rs 15,000 to Rs 18,000, removing around 1 million taxpayers from the tax net [5][21]. - Rajiv Gandhi's 1987-88 budget significantly increased education spending from Rs 352 crore to Rs 800 crore, leading to the establishment of the Securities and Exchange Board of India [6][21]. Group 2: Liberalization and Structural Changes - Manmohan Singh's 1991-92 budget marked a shift towards Liberalization, Privatization, and Globalization (LPG) in response to a balance of payments crisis, with fiscal deficit exceeding 8% of GDP [7][21]. - P. Chidambaram's 1996-97 budget focused on long-term infrastructure financing, establishing the IDFC to support infrastructure projects [10][21]. - The 1997-98 budget, known as the "dream budget," introduced significant tax reforms, lowering personal income tax rates and recognizing the importance of information technology [11][21]. Group 3: Recent Developments and Future Directions - Arun Jaitley's 2017-18 budget introduced the Goods and Services Tax (GST), unifying 17 central and state indirect taxes under a federal framework [16][17]. - Nirmala Sitharaman's 2020-21 budget emphasized infrastructure development through the National Infrastructure Pipeline and proposed a restructuring of the personal income tax regime [18][21]. - The 2025-26 budget proposed the Jan Vishwas Bill 2.0 to decriminalize certain provisions, aiming to reduce compliance burdens and improve the ease of doing business [19][21].

Core Insights - Many mutual fund investors have missed opportunities in international markets due to regulatory restrictions on new investments into such funds, while those who remained invested have benefited from overseas market rallies [1][5]. Group 1: Fund Performance - The asset under fund of funds (FoF) investing in global markets increased by 28% to ₹35,965 crore in November from ₹28,065 crore in January, driven by mark-to-market gains [2]. - The HSBC Brazil Fund and Edelweiss Europe Dynamic Equity Offshore Fund achieved the highest returns of 56% and 51%, respectively, over the last year [2]. - The DSP World Gold Mining Overseas Equity Omni FoF and DSP World Mining Overseas Equity Omni FoF delivered exceptional returns of 169% and 80%, respectively, in the past year [3]. Group 2: Regulatory Environment - The Securities and Exchange Board of India (SEBI) has restricted mutual funds from accepting fresh inflows into overseas funds since 2022, capping the mutual fund industry's overseas investment at $7 billion, with a separate limit of $1 billion for exchange-traded funds [4]. Group 3: Investor Behavior - High net worth and ultra-high net worth investors have utilized the Liberalized Remittance Scheme (LRS) to invest in overseas markets, while retail investors who maintained their investments in overseas funds benefited from mark-to-market gains [5]. Group 4: International Market Performance - The Nifty 50 index returned approximately 9% in 2025, while the Dow Jones Industrial Average, Nasdaq Composite, and S&P 500 indices returned 13%, 20%, and 17%, respectively [6]. - The MSCI All Country World Index rose over 21% last year, reaching a record high, with European stocks benefiting from bank-heavy gains [6]. - South Korea's KOSPI index saw a remarkable increase of nearly 76%, while Hong Kong's Hang Seng Index rose nearly 31%, and Japan's Nikkei 225 increased by about 28% [7].

Core Viewpoint - Janus Henderson Forty T (JACTX) is a promising option for investors seeking a Large Cap Growth fund, holding a Zacks Mutual Fund Rank of 2 (Buy) based on various forecasting factors [1] Fund Objective - JACTX is classified in the Large Cap Growth segment, targeting large-cap companies with market valuations exceeding $10 billion, which are expected to grow faster than their peers [2] Fund History and Management - The fund, managed by Janus Fund based in Boston, MA, was launched in July 2009 and has accumulated approximately $5.01 billion in assets. Nick Schommer has been managing the fund since January 2016 [3] Performance Metrics - The fund has a 5-year annualized total return of 12.48%, ranking in the middle third among its category peers. Its 3-year annualized total return is 25.9%, also placing it in the middle third during that timeframe [4] - The standard deviation of JACTX's returns over the past three years is 15.52%, higher than the category average of 12.23%. Over the past five years, the standard deviation is 18.62%, compared to the category average of 13.99%, indicating higher volatility than its peers [6] Risk Factors - JACTX has a 5-year beta of 1.15, suggesting it is more volatile than the overall market. The fund has produced a negative alpha of -3.6 over five years, indicating challenges in outperforming the benchmark S&P 500 [7] Expense Structure - JACTX is a no-load fund with an expense ratio of 0.76%, which is lower than the category average of 0.95%, making it a cost-effective option for investors [8] - The minimum initial investment for JACTX is $2,500, with no minimum for subsequent investments [9] Conclusion - Overall, Janus Henderson Forty T (JACTX) is characterized by a high Zacks Mutual Fund rank, average downside risk, and lower fees, positioning it as a strong potential choice for investors [11]

Global Economic Outlook - The global economy is transitioning to a phase where fiscal policy is taking precedence, while monetary support is gradually diminishing. Rate cuts are in progress, but the conditions that previously drove strong market rallies are no longer present. Global growth is expected to remain positive but may experience a slight slowdown in CY26 compared to CY25 [1][12]. Risks Impacting Global Markets - Key risks identified for the global market include de-dollarization, the resurgence of inflation, potential AI bubbles, and the ongoing US-China rivalry. These factors could significantly influence market dynamics in the upcoming year [2][12]. China’s Market Dynamics - Despite China's economic growth, long-term volatility in equity markets has been noted, with repeated boom-and-bust cycles limiting wealth creation for investors. The CSI 300 index is currently trading at levels similar to 17 years ago, indicating potential risks for global capital flows towards alternative markets like India in the event of a sharp correction in China [3][12]. India’s Growth Prospects - India's structural transformation over the past decade has led to macro stability and stronger balance sheets, providing resilience against global shocks. However, growth is expected to remain in the mid-single digits, with the country being the fastest-growing major economy but unlikely to achieve double-digit growth. Challenges include slowing private investment and the risk of AI disrupting employment in key sectors [4][5][12]. Equity Market Insights - While benchmark indices are near record levels, many individual stocks are significantly below their all-time highs. Earnings growth for large companies has been weak in recent quarters, but a rebound into double digits is anticipated for the next year. Investors are cautioned against assuming that past returns will be replicated in the future [6][7][12]. Sectoral Opportunities - Financial services and consumer-oriented businesses are positioned favorably due to policy measures that increase disposable income for taxpayers and borrowers. Healthcare and e-commerce are also highlighted as medium-term opportunities [9][12]. Fixed Income and Precious Metals - The Reserve Bank of India is expected to support growth as inflation has decreased, allowing for further easing. Gold and silver remain integral to the asset allocation strategy, driven by central bank purchases and geopolitical uncertainties, although investors are advised to limit exposure due to volatility [10][12]. Overall Market Sentiment - The outlook for CY26 is characterized by moderation rather than exuberance, with expectations of positive returns across equity, fixed income, and precious metals. Investors are encouraged to maintain diversification, manage expectations, and focus on long-term fundamentals rather than short-term gains [11][12].

Silver ETFs - Silver ETFs gained attention in 2025 due to significant price increases in India, driven by local shortages that inflated prices above global benchmarks [1][2] - The supply deficit in the physical silver market is expected to persist, potentially impacting new investments in Silver ETFs [1] - The strong performance of silver is attributed to its dual role as a precious metal and an industrial commodity, with high industrial demand contributing to price increases [2] Gold ETFs - Gold ETFs reached new all-time highs in 2025, with returns up to 78.76%, led by Axis Gold ETF [5] - Investors turned to gold as a hedge against uncertainty and equity volatility, appreciating the liquidity and transparency of gold ETFs [4] - The outlook for gold in 2026 is influenced by real yields, the US dollar, and central bank demand, with forecasts suggesting prices could stabilize around $4,500–$5,000 [6] Consumption Funds - Consumption funds attracted interest following the restructuring of the goods and services tax (GST) in September 2025, which aimed to improve household disposable incomes [7][8] - Despite the potential for recovery, consumption funds have faced losses since the implementation of GST 2.0, with significant declines observed in specific funds [9] - A gradual recovery in consumption growth is anticipated in 2026, driven by improved consumer confidence and discretionary spending [10] International Funds - International funds outperformed domestic funds in 2025, with average returns of 27.06%, bolstered by the depreciation of the Indian rupee [11][12] - Notable performances included the NASDAQ 100 and S&P 500, which delivered returns of 23.18% and 20.60%, respectively [12][23] - The recommendation for investors is to allocate 10–20% to international funds, focusing primarily on US markets [14] Auto Sector Funds - Auto sector funds experienced significant growth in 2025, supported by strong domestic consumption and lower input costs [15] - Average returns for auto sector funds were 17.15% in the current calendar year, although future performance may be more selective due to higher valuations [16][17] - The sector is expected to be suitable for tactical allocations rather than core holdings in 2026 [17] Technology Sector Funds - Technology sector funds were among the worst performers in 2025, with the Nifty IT index declining by 9% year-to-date [18][20] - Factors impacting performance included delayed tech projects due to macroeconomic uncertainties and policy issues, leading to a negative average return of 3.10% for tech funds [19][20] - There is cautious optimism for a rebound in the tech sector as demand improves and AI opportunities become clearer, although recovery is expected to be gradual [21][22]

Core Insights - The year 2025 presented a mixed experience for Indian mutual fund investors, with returns varying significantly across different fund categories, ranging from –20% to 178% [1] - Equity performance was notably divergent, with large-cap funds showing resilience while small-cap strategies faced challenges due to increased volatility [1] - Thematic funds reflected sector-specific cycles rather than overall market trends, while debt funds experienced diminishing returns as the year progressed [1] Equity Funds - The Nifty 500 index saw a sharp correction after peaking in September 2024, followed by a V-shaped recovery, with the Nifty 100 Total Return Index gaining about 10% YTD by December 23, 2025 [4] - Large-cap funds led returns with 7.5%, while mid-cap and small-cap funds lagged at 2.4% and –4.1% respectively, contrasting sharply with 2024's performance [6] - Systematic Investment Plans (SIPs) showed strong performance, with large-cap funds achieving an XIRR of 13.4% [7] Sector and Thematic Funds - Transportation and Banks & Financial Services sectors led returns at 18% and 16% respectively, while defensive sectors like Technology and Pharma underperformed [10] - Large-cap funds managed corrections better during market troughs, with declines of less than 9% compared to larger drops in flexi-cap and small-cap funds [12] Debt Funds - The RBI cut the repo rate by 125 bps to 5.25%, supported by low inflation, allowing for a favorable environment for debt funds [21] - G-Sec yields softened initially but later increased due to supply pressures, with long-duration funds posting modest YTD returns of 2.9% to 5.3% by December 23, 2025 [22] - The overall debt fund universe recorded a notable AUM increase of 23%, reaching ₹19.4 lakh crore by November 2025 [25] Gold and Silver ETFs - Gold and silver ETFs were standout performers, with silver surging 178% and gold returning 78% YTD [26] - Trading volumes for silver ETFs significantly outpaced gold ETFs, with total traded value for silver ETFs reaching ₹1.3 lakh crore, a 560% increase from the previous year [29] Hybrid Funds - Multi-asset allocation funds emerged as top performers with an average return of about 16.4%, benefiting from diversified exposure [31] - Aggressive hybrid funds delivered modest returns of around 5.7%, with significant performance dispersion among schemes [33] - Investor flows favored multi-asset allocation funds, which attracted the highest inflows at ₹39,631 crore [35] International Funds - International funds showed a wide range of returns from 9% to 178%, with US equity funds being the backbone of allocations [36] - The DSP World Gold Mining Overseas Equity Omni FoF achieved an extraordinary 178% return, driven by a rally in gold prices [39] - Regulatory constraints on overseas investments by Indian mutual funds limit incremental flows, impacting subscription opportunities [42][43]

Core Viewpoint - Rosen Law Firm is reminding investors who purchased shares of the Wildermuth Fund during the specified Class Period of the upcoming lead plaintiff deadline for a class action lawsuit [1][3]. Group 1: Class Action Details - Investors who purchased Class A, Class C, and Class I shares of the Wildermuth Fund between November 1, 2020, and June 29, 2023, may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [2]. - A class action lawsuit has already been filed, and interested parties must move the Court to serve as lead plaintiff by December 29, 2025 [3]. Group 2: Legal Representation - The Rosen Law Firm emphasizes the importance of selecting qualified legal counsel with a proven track record in securities class actions, highlighting its own success in recovering hundreds of millions for investors [4]. - The firm has been recognized for its leadership in securities class action settlements, achieving significant recoveries, including over $438 million in 2019 alone [4]. Group 3: Allegations Against Wildermuth Fund - The lawsuit alleges that during the Class Period, the defendants violated federal securities laws by miscalculating the fair value of the fund's investments, failing to disclose questionable portfolio companies, and inflating the fund's net asset value, which resulted in excessive advisory fees [5].