Mutual fund expert Dhirendra Kumar answered this and other questions in a chat with readers on May 23.
A strong influx of 11 equity new fund offers (NFOs) in June, particularly within the thematic space, helped mutual funds collect Rs 14,370 crore - the highest ever via such introductory offers. This surpassed the previous high recorded in July 2021, where four NFOs accumulated Rs 13,709 crore, with ICICI Prudential MF's flexicap NFO alone mobilising Rs 9,808 crore.
'Investors should do proper analysis before putting in their money in NFOs as most new launches are in the high-risk thematic space.'
Of the 70 international feeder funds, more than half have made losses in 2014.
The payouts were 22 per cent lower than the previous year's tally of Rs 7,938 crore.
Mutual funds aspirants have the option of snapping up smaller AMCs or applying for a new licence.
Investors should look at actively managed funds, says Devangshu Datta.
Half a dozen stocks from the large-cap universe and over two dozen from the mid-cap universe have been replaced.
Market regulator also announces measures for mutual funds sector.
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.
Experts say investors should stay patient and stay invested in mutual funds.
Exodus of top managers an unintended side effect of roaring MF industry
In front-running case, some fund houses have settled with Sebi and paid the amount lost to trustees.
Such schemes try to exploit an anomaly in taxation, but aren't in violation of laws, experts say.
While there is little one can do when the fund house restricts redemptions, it's best to exit even if it means some losses.
Institutional investors - both foreign and domestic - lapped up the government's big-ticket share sales on Friday, helping it add nearly Rs 9,000 crore to its revenue kitty.
Bull markets need a a charismatic leader and a fancy destination.
Measured by returns in 2013, the top 10 funds had only three from large houses; nimble strategy could be a factor.
Sebi has allowed mutual fund schemes the option of 'side-pocketing' which move will help both fund houses and investors.
Ten Indian states contribute a lion's share of 95% or Rs 12.25 lakh crore.
Ask about the fund house's other schemes and how these have performed over time.
Asset managers are betting big on ETFs these days.
Most large fund houses, such as HDFC MF, ICICI Prudential AMC, Reliance MF, Reliance MF, Birla SunLife MF and SBI MF, have the backing of large banks or financial institutions, giving them reach and understanding, they say.
'Indians are great savers, but they are lousy investors.'
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