If FMPs get categorised as liquid funds, they will attract higher dividend distribution tax
Debt funds typically held 0-5 per cent of their portfolio in cash and cash equivalents before this Sebi diktat.
The mutual fund industry has witnessed a value erosion of Rs 75,966 crore (Rs 759.66 billion) in equity-related schemes in the first seven months of the current financial year. This is primarily because of the slide in the equity market on account of the global financial turmoil.
In 2013-14, the funds witnessed outflow of Rs 2,293 crore
China is very popular in terms of the place to invest and it is growing at a double digit GDP growth. But, India is very attractive long term play, because of the changes that are happening in the country. Firstly, the demographics in India are favourable with nearly half of the population under 26 years of age, says Dr P. Brett Hammond.
MFs greet FMs decision on overseas investment
Mutual Fund Identity Number throws up more questions than answers.
In 2022, gold emerged as the top performer among all conventional asset classes with over 14 per cent returns mainly owing to the depreciation of the rupee.
Apprehending a sharp decline in business, mutual funds including UTI AMC have asked Finance Minister P Chidambaram to exempt all debt instruments from the proposed 0.15 per cent transaction tax.
Instead of only focusing on the tenure for which the best interest rate is available, investors should also focus on their own investment horizon.
Women have been leaving the investment decision to husbands.
'Strong regulations are crucial for the orderly development of the market.'
'The shadow banks are currently facing a liquidity and solvency crisis.' 'The danger is that it could potentially engulf the entire financial system because shadow banks have borrowed huge amount of money from banks, mutual funds, pension funds, and insurance companies.'
This feat was achieved 25 years after the mutual funds industry was opened to private players. The industry now aims to achieve the next Rs 25 trillion in 5 years.
Both the debt and equity markets have seen sharp volatility in recent months.
'Looking at the speed at which changes were made post the Franklin Templeton issue, we are awaiting more stricter norms in the months to come.'
Mihir Tanna, Associate Director, S K Patodia & Associates, answers your tax queries.
UTI's legacy and brand recognition, together with a robust distribution network and access to public sector money, could work in its favour, and help it command a premium
This was the second consecutive yearly outflow from such funds.
The mutual funds witnessed net inflow of Rs 7,131 crore (Rs 71.31 billion) in May 2003, with total sales and redemption/repurchases at Rs 35,922 crore (Rs 359.22 billion) and Rs 28,791 crore (Rs 287.91 billion), respectively.
Gold is an excellent asset class for diversification and should be included in all long-term portfolios.
They are suitable for a 3-5 year horizon. Choose equity funds for longer than 5 years
Geopolitical tensions in different parts of the globe and slowdown in global economy led investors to opt for safe-haven like gold over the last one year.
Do not underestimate the ingenuity of the Deep State in America to have its way. Keeping the guard down will be a catastrophic mistake on the part of the Delhi establishment. We could get hit when least expected. That's what happened in Bangladesh and Syria, warns Ambassador M K Bhadrakumar.
Over the past 25 years the MF industry has come a long way. Geographic reach has increased, many more customers have been added, more channels have been opened up and the product basket is full.
Outflows are likely to continue, experts say, till such time as the markets see a significant correction.
In October, the contribution through SIPs rose to Rs 79.85 billion, up 42% compared to the same month last year.
Begin by creating a household budget. Involve all family members in the exercise and cut costs wherever possible.
Foreign portfolio investors, on the other hand, have been net sellers in the markethaving pulled out Rs 8,600 crore
The bulk of an investor's portfolio should be in shorter-duration funds of up to one year portfolio duration.
Experts say the trend is worrying as it could take a toll on the pace of equity flows and also hinder the penetration drive of the Rs 24-trillion MF industry.
Ask rediffGURU and tax expert Mihir Tanna your income tax-related questions.
Alternative investment funds (AIFs) - pooled investment vehicles catering to high net worth individuals (HNIs) - saw a 30 per cent increase in investment commitments during financial year 2022-23 (FY23). At the end of March 2023, the total investment commitments raised stood at Rs 8.33 trillion, up Rs 1.92 trillion from Rs 6.41 trillion at the end of March 2022. A commitment is the money clients are willing to put into AIFs.
Investors sinking lump sum money in equities seem to have applied the brakes.
Understand the pros and cons of SGBs before rushing to invest in them based on past returns.
Nasreen, who served as the director of the Indian Cultural Centre at the high commission of India in Male, Republic of Maldives, from 2019 to 2023, shared insights into the growing influence of China and Pakistan in countering India's soft power.
In August, the Reserve Bank of India Governor Shaktikanta Das held a meeting with chief executive officers/ managing directors (CEOs/ MDs) of large non-banking financial corporations (NBFCs). The discussions included diversifying borrowing sources for NBFCs and housing finance companies (HFCs) to contain increasing reliance on bank borrowing, risks associated with high credit growth in retail segment in unsecured loans, prioritising IT upgrades and cyber-security, improving provisioning, monitoring of stressed exposures and slippages, ensuring robust liquidity and asset-liability management, ensuring transparency in pricing, creating robust grievance redress mechanisms.
The Indian equity market valuation has been moving in tandem with the US 10-year treasury yield. While the benchmark US bond yield has witnessed a nearly 70 basis point decline since the end of October this year, dropping from 4.93 per cent to 4.23 per cent on Friday, the Sensex earnings yield has slipped by nearly 45 basis points - from 4.5 per cent to 4.05 per cent. Previously, Indian equities' earnings yields rose in sync with the US bond yields.
