Omkeshwar Singh, head, Rank MF, a mutual fund investment platform, answers your queries.
The share of equity and investment funds in the total financial wealth of households increased by more than 50% between 2011-2012 and 2022-2023.
Balanced advantage funds (BAFs) were popular in the later part of 2021 and continued to see good inflows until some months back as investors looked for safer options amid over-valuation concerns. As such concerns ease, investors are turning to riskier funds and shifting from BAFs. Redemptions from the hybrid fund category have exceeded in six of the last seven months, with investors pulling out a net of Rs 3,140 crore during the seven-month period.
The return filed could be treated as defective, invalid, or even be considered as not filed at all.
Riding the wave of the equity market, the mutual fund (MF) industry experienced double-digit growth in Samvat 2079, concluding the Hindu calendar year close to the Rs 50 trillion assets under management milestone. After a subdued 6 per cent growth in Samvat 2078, the industry's assets surged over 18 per cent last year to Rs 46.7 trillion. Industry players anticipate that Samvat 2080 will also be a fruitful year for the asset management industry, given the strong inflows from retail investors, particularly through the systematic investment plan route.
A growth scheme not only leads to lower tax payments than the dividend option. but also allows any income that is not withdrawn to compound, explains Harsh Roongta.
The number of active SIP accounts is nearing the 100 million milestone.
Mutual fund (MF) houses have started realigning their overseas product offerings after the Securities and Exchange Board of India (Sebi) advised them to stop subscriptions. PPFAS Asset Management has decided to suspend transactions in Parag Parikh Flexi Cap Fund with effect from February 2, 2022. Though new lump-sum and systematic investment plans (SIPs) will not be accepted, existing SIPs and systematic transfer plans (STPs) will continue.
After withdrawing record funds in 2021-22, foreign portfolio investors (FPIs) continued their sell-off in the last fiscal too and pulled out Rs 37,631 crore from Indian equities amid aggressive rate hikes by central banks globally. The outflow trend is likely to reverse in the current financial year since India has the best growth potential in the financial year 2023-24 (FY24), VK Vijayakumar, chief investment strategist at Geojit Financial Services, said. Market analysts believe that FPI flows in the current financial year would be decided by a host of factors, such as the US Federal Reserve's policy stance, oil prices movement and development in the geopolitical situation.
Salil Dhawan explains how as you progress in your career you can also grow your money at a phenomenal pace if you start investing early.
'Money that came into mutual funds near the previous peaks -- the second half of 2017 and 2018 -- has in most cases experienced unflattering returns.' 'A large proportion of redemptions could be such inflows exiting when the market recovered sharply from July 2020 onwards.'
India remains one of the most over-owned market in Asia.
'Investors should do proper analysis before putting in their money in NFOs as most new launches are in the high-risk thematic space.'
The Indian mutual funds, hit hard by redemption pressure, have something to cheer with the government allowing navratnas and mini-ratnas to invest 30 per cent of their surplus funds in equity market through public sector mutual funds.
'Investors should restrict themselves to a few category schemes with high quality portfolios apart from overnight and liquid funds.'
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
The biggest bounce is in the realty sector, where the industry index jumped 80%. There's been a turnaround also in automobiles and ancillaries (up 45%). The pharma and health care indices have a welcome return of roughly 35%.
Younger investors with long investment horizons may continue their SIPs.
'For the same level of return, you can reduce portfolio volatility significantly with a 10% to 15% exposure to international funds.'
Steep volatility in the markets has made fund managers cautious, awaiting opportunities to deploy the cash.
The financial numbers for 2023-24 (FY24) of the four pure-play listed asset management companies (AMCs) have enthused the Street. All firms listed robust growth in net profit and revenue both during the January-March quarter (Q4) of FY24, as well as in full FY24. The strong performance comes amid a positive growth environment for the sector, led by tailwinds such as sharp growth in assets under management (AUM) and robust performance in equity offerings.
'If rate cuts happen, bond yields will come down and investors will make mark-to-market capital gains on them.'
Investmentyogi simplifies equity linked savings schemes for Get Ahead readers and discusses the pros and cons.
The value of foreign portfolio investors' (FPI) holdings in domestic equities reached $654 billion in three months ended December 2021, a drop of nearly 2 per cent from the preceding quarter, according to a Morningstar report. This was largely on the back of a massive sell-off by foreign investors and a correction in the Indian equity markets, especially in the large and mid-cap sectors. "At the end of the quarter ended December 2021, the value of FPI investments in Indian equities fell to $654 billion, which was lower than $667 billion recorded in the previous quarter, a fall of around 2 per cent," the report noted.
Navi Mutual Fund (MF), among the latest entrants in the Rs 35-trillion industry, is looking to make a mark in the passive investment space, which is gaining traction in the country. The Flipkart co-founder Sachin Bansal-led fund house filed seven offer documents with the market regulator Securities and Exchange Board of India (Sebi) on a single day this week. Some of the schemes Navi MF plans to launch are Navi NASDAQ 100 Fund of Fund, Navi Nifty Commodities Index Fund, Navi Nifty 100 ESG Index Fund.
Here's a list of Top 10 ELSS funds in terms of percentage gain in the last one year till August 10, 2007. These funds not only help you make money but also save taxes as per Section 80C.
If you lack an emergency fund or it is depleted, use part of your bonus to build or replenish it.
All investment decisions can be distorted by your own biases. Understand your biases and make informed decisions.
Omkeshwar Singh, head, Rank MF, a mutual fund investment platform, answers your queries.
