Cases of front-running mostly happen when large asset managers and intermediaries are involved in bulk trades as their transaction size is generally big enough to impact the stock price.
Increasing awareness about mutual funds, ease of transactions through digitisation and sharp surge in equity markets have aided asset management companies to add a staggering 3.17 crore investor accounts in 2021-22, with experts saying the trend is likely to continue this fiscal as well. This was a significant rise from 2020-21 when 81 lakh accounts (or folios in mutual fund parlance) were opened, data with the Association of Mutual Funds in India (Amfi) showed. The ongoing financial year too appears to be promising in terms of folios as increase in investor accounts will enable people to move beyond fixed deposits and savings accounts, said Priti Rathi Gupta, founder of LXME, a financial platform for women.
Retail investors now own a bigger slice of small-cap companies than a couple of years earlier, attributable to their growing conviction in mutual fund (MF) schemes focused on this space. Data from Capitaline shows MFs' average holding in the National Stock Exchange Nifty Smallcap 250 rising to 8.67 per cent, from 7.67 per cent in the past two financial years, with the number of companies with over 20 per cent MF holdings, rising from 15 to 24. At the end of May, the top five small-cap firms with the highest MF holdings were Carborundum Universal, Blue Star, Cyient, Gujarat State Petronet, and Cholamandalam Finance.
Ask rediffGURU and PF and MF expert Janak Patel your mutual fund and personal finance-related questions.
'In an economy that is set to double in the coming years, stopping SIPs will take investors out of this growth path.'
Ask rediffGURU and PF expert Milind Vadjikar your insurance, stocks, mutual fund and personal finance-related questions.
India and Canada have mutually beneficial political and economic linkages. The two countries should get together and find a solution. The expulsion war should, in the meantime, be a guarantee against any deterioration of the situation, asserts Ambassador T P Sreenivasan, the first Indian head of mission to be ever expelled by any country.
Investors with a long-term horizon and high-risk appetite seeking capital appreciation can consider investing in ELSS.
A broad consensus has been achieved by India and China on restoring the 'ground situation' along the Line of Actual Control (LAC) pursuant to talks, including for patrolling and grazing cattle in the traditional areas, Defence Minister Rajnath Singh said on Thursday.
Data from Amfi shows that NAV of every one in two BAFs declined 1.5% or less on Monday compared to a 3.13% decline in Nifty 500.
Several cine personalities such as Chiranjeevi, Nagarjuna, junior NTR, Venkatesh, Prakash Raj and Khushbu hit out at the minister for her remarks.
'Indian investors have always been debt-heavy but with growing financial awareness they are getting comfortable with equities.'
Midcap stocks Hero MotoCorp, Zydus Lifesciences, JSW Energy, NHPC, Bharat Heavy Electricals, Bosch, and Samvardhana Motherson are expected to earn upgrades.
Ever since the Quad started taking shape in 2007, China has been saying that the four-member grouping will be bound to fail. But much to the chagrin of Beijing, it picked up pace in the recent years emerging as a premier strategic group especially challenging China's assertiveness in the disputed South China Sea.
The MF investor count, which stood at around 38 million in April 2023, has surged by 19 per cent in the past year.
rediffGURU Ramalingam Kalirajan answers your personal finance queries.
Younger people, who usually have a longer investment horizon which allows them to handle the interim volatility, may go for them.
Investors keen on mid and smallcap stocks but wary of volatility should consider multicap equity schemes over standalone midcap or smallcap schemes.
Ask rediffGURU and tax expert Mihir Tanna your income tax-related questions.
In order to boost its deposit base, State Bank of India (SBI) is focusing on various segments, including JanDhan account holders, trusts, societies, and the segment below the affluent class but above the normal account holders. According to Ashwini Tewari , managing director, SBI, the bank is focusing on three broad segments. One is wealth banking, where the bank is focusing on individuals who perhaps do not qualify for private banking but are above regular accounts and require individual attention.
India's thriving mutual fund (MF) industry is drawing interest from several firms, with multiple applications submitted to the Securities and Exchange Board of India (Sebi) for asset management company (AMC) licences.
Ask rediffGURU and tax expert Mihir Tanna your income tax-related questions.
Real estate investment trusts (Reits) are in talks with regulatory bodies - the Securities and Exchange Board of India (Sebi) and the Reserve Bank of India (RBI) - to seek changes in regulations that will allow easier access to capital. The Indian Reits Association (IRA) said it has approached the market regulator seeking to get classified as an 'equity' asset, which will open the path for their inclusion in equity indices and also make investment by mutual funds (MFs) easier. The association is also in active discussions with the RBI to allow banks to lend to a Reit.
If you don't make the necessary adjustments after October 1, 2024, you'll stop earning interest on accounts that aren't in compliance rediffGURU Milind Vadjikar
A retirement fund can be helpful for all age groups, but ideally one should start investing early to beat market swings and gain from compounding.
Investor interest in the mutual fund industry as an avenue to generate long term wealth creation is rising with SIP's asset base touching an all-time high of Rs 4.67 lakh crore at May-end. Over the past five years, the systematic investment plan or SIP AUM has grown 30 per cent annually, twice as fast as the growth in the overall mutual fund industry's assets under management (AUM). According to data released by Association of Mutual Funds in India (Amfi) on Wednesday, SIP AUMs have seen a close to four-fold jump to Rs 4,67,366 crore as of May this year from Rs 1,25,394 crore as of August 2016.
rediffGURU Ulhas Joshi answers readers' mutual fund queries
The new asset class (NAC) proposed by the market regulator could see diverse product offerings with high-risk strategies across equity and debt if the mutual fund (MF) industry's recommendations are incorporated into the final regulations. While the Securities and Exchange Board of India (Sebi) has suggested relaxations in investment norms for NAC compared to traditional MFs, some fund houses are advocating for further relaxations in concentration norms, greater flexibility in leverage, and the ability to invest in securities currently outside the MF domain, such as unlisted debt papers and debentures, sources reveal.
Ask rediffGURU and tax expert Mihir Tanna your income tax-related questions.
Industry body Amfi to hold meeting to decide on road map.
'Our greatest enemies lie within us Kama -- selfish desires; krodha -- anger; moha -- attachment; lobha -- greed; madha -- pride and matsarya -- envy. Life is a constant battle against these dark forces. An enlightening excerpt from Priya Arora's book, Rama: A Man of Dharma.
The Securities and Exchange Board of India (Sebi) could soon issue interim orders imposing a market ban on the two former fund managers of Axis Mutual Fund (MF) for suspected front-running of trades, said people with knowledge of the development. "The market regulator has gathered prima facie evidence that demonstrates that the duo has violated the integrity of the market. "While a detailed investigation is still pending in the matter, Sebi could take action under Section 11 (4) to prevent further harm to the investors and the securities market," said a source.
Out of 3,871 recovery certificates issued by the regulator in various cases, 807 have been certified as difficult to recover.
These funds at times invest in companies going through corporate restructuring, such as mergers, demergers, or buybacks.
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.
Equity flows turning positive could give fund managers firepower to invest in the markets. This could come in handy as flows from foreign investors have tapered off amid rising bond yields in the US.
Wondering if you did the right thing with your mutual fund investments?
Multi-asset allocation funds emerged as the most popular option for MFs as they provided the needed flexibility.
'If the portfolio growth rate is higher, take this loan. If it is lower, liquidate your investments.'
>According to the latest RBI data, PPF receipts have already experienced a decline between April 2023 and February 2024. Other schemes like the Sukanya Samriddhi Account and National Savings Certificate are also witnessing reduced inflows.
