In the rat race to garner more assets and reach number one position, mutual fund houses look for distributors who can sell more. But does it serve your interests?
For the first time in a decade, inflows into equity mutual funds (MFs) decoupled from the past performance of the equity market, as investors continued to pour money into the market unperturbed by lacklustre returns.
Paisa Bazaar, which recently forayed into online mutual fund distribution, has come out with a 20-second video clip featuring Bollywood actor Akshay Kumar. The ad, which talks about the benefits of investing in direct plans, has already got 1.6 million views on YouTube.
Ask rediffGURU and PF expert Nitin Narkhede your mutual fund and personal finance-related questions.
Even as the returns of mutual fund (MF) schemes have improved considerably in the past three months, addition of new investors has remained in the slow lane for the MF industry. According to industry data, during the first six months of CY 2023, MFs onboarded only 1.6 million new unique investors, in stark contrast to the 4.7 million investors added during the same period last CY and the 2.4 million in 2021. It is noteworthy, however, that the current additions for this year have doubled in comparison to the figure of 800,000 seen in 2020.
Retail investors' equity portfolios have significantly underperformed benchmark indices over the past 16 to 18 months.
Why should I invest in mutual funds? Why cannot I invest in equities directly? Here are 7 simple reasons
Mutual funds have invested nearly Rs 94,500 crore in equities thus far in CY17, compared to Rs 32,000 crore in the year ago period, at a time when foreign investors have turned net sellers of India since August.
HDFC MF witnessed 17% rise in investment in its schemes to Rs 6,462 crore by group companies during May.
Ask rediffGURU Reetika Sharma your insurance, mutual fund and personal finance-related questions.
Top officials said asking employees other than the fund management team to mandatorily invest a fifth of their salary goes against the principle of natural justice.
Ask rediffGURU Reetika Sharma your insurance, mutual fund and personal finance-related questions.
The Association of Mutual Funds in India (Amfi) has already taken up the matter with the market regulator and the finance ministry.
LIC is one of the largest Indian shareholders in the country's largest car maker, with a 6.93% stake.
After relentlessly selling shares for most of 2013, India's equity mutual fund managers have turned buyers in the fag-end of the year.
In a move aimed at curbing the mis-selling of financial products, the Reserve Bank of India (RBI) has proposed banning incentives paid to bank staffers by third parties such as insurance companies and mutual fund houses for selling their products and services. It has also proposed that banks must ensure their user interfaces do not deploy "dark patterns" to lure customers.
A Balasubramanian tells Business Standard that the sector will see one of its best phases in the coming five years.
Mutual fund investors will be able to earn more on their investments because of the Securities and Exchange Board of India ruling on the removal of 2.25 per cent entry loads on their investments.
'Even last year, when India bought gold, the physical quantity was much less than the previous years.'
'Long-short SIFs are designed for seasoned, high-risk, high-reward investors, who understand market volatility.'
Sectoral funds, focused exclusively on public sector banks (PSBs), have delivered the strongest returns among domestic mutual fund (MF) categories over the past six months. However, active banking funds have significantly lagged because of their heavy tilt towards private lenders.
'We are staying away from making forward-looking statements on when we will reach 1 trillion, etc. But growth will be rapid; it's only a matter of time.'
Ask rediffGURU Reetika Sharma your insurance, mutual fund and personal finance-related questions.
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.
Investors who constantly hop between 'top-performing' funds often end up earning far lower returns than the very funds they invest in -- simply because they enter late and exit early. Best investors don't chase returns, they chase discipline, says Ramalingam Kalirajan.
The sharp surge in investment accounts (folios) in midcap and smallcap mutual funds (MF) in recent months is likely driven by the do-it-yourself (DIY) investors. In the first five months of the present financial year (FY 2024), net folio additions in direct MF plans (4.5 million) has outpaced that in regular plans (3.9 million), contrary to the trend seen in the previous three six-month periods. The net folio additions in direct plans in the five-month period (April-August 2023) is 40 per cent higher than the total additions made in the previous six month period.
BJP state president Rajeev Chandrasekhar, contesting from Nemom, Kerala, declares assets exceeding 93 crore, including movable and immovable properties, ahead of the upcoming Assembly elections.
The Reliance Centre, a guesthouse and some residential assets in Mumbai, apart from 231 plots of land in Chennai, are among the fresh assets worth Rs 1,120 crore attached by the ED as part of its ongoing money-laundering probe against the companies of Reliance Group chairman Anil Ambani.
Experts say you may invest in small-sized funds and benefit from their nimbleness.
'The first time India has seen two consecutive blockbuster IPO years.'
Investors are moving away from the commercial paper (CP) market towards certificates of deposit (CDs), as primary CD issuances and rates on these short-term instruments rise.
Sebi Chairman Tuhin Kanta Pandey announced intensified surveillance and technology-driven enforcement to combat pre-investment scams targeting retail investors, who are increasingly being lured by fake trading apps and promises of high returns.
The Budget emerges as a measured, credible and forward-looking policy document that reinforces India's commitment to remaining a stable, reform-oriented economy amid an increasingly fragmented global landscape, says A Balasubramanian.
Ten Indian states contribute a lion's share of 95% or Rs 12.25 lakh crore.
Share of IPOs opening above issue price drops to 64.6%, median gains shrink sharply amid market volatility.
Iran has submitted a fresh proposal to regional intermediaries offering to cease its military operations in the Strait of Hormuz, contingent upon a complete cessation of hostilities and the removal of the US blockade on Iranian maritime hubs.
DLF wrote to Sebi, asking if the firm's ban on securities transactions extends to mutual fund investments.
Prime Minister Narendra Modi will visit the UAE, the Netherlands, Sweden, Norway and Italy to deepen India's bilateral ties amid geopolitical changes.
