Equity mutual funds attracted an all-time high net inflow of Rs 28,463 crore in March, on continued interest by retail and HNI investors, who used market correction as a good buying opportunity.
Now that bank FD rates have gone up and most BAFs haven't delivered good returns, these investors are likely to be moving back to FDs, observed a senior MF distributor. The performance of BAFs in the past year has been mixed.
'Given the inherent volatility, investors should take at least a three to five-year view.'
The Rs 38-trillion mutual fund (MF) industry is going through a new fund offer (NFO) rush. Since July 1, the industry has launched close to 70 NFOs. This follows the completion of a near three-month embargo period when the industry had vowed to not launch any new offerings till the time it implemented norms around pooling of investor accounts. As a result, between April and June 2022, the industry was able to launch just three NFOs.
A lot of NFOs were mis-sold and we frequently come across clients who request us to re-assess their NFO-heavy portfolios.
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.
Dwaipayan Bose examines the seven important factors that investors about exchange traded funds must know before they start investing/trading in them.
No fund houses could muster the courage to launch equity funds during the period and the sector lost a lot of its equity assets.
Domestic mutual funds (MFs) and foreign portfolio investors (FPIs) have been net buyers of stocks in August. Domestic fund houses have continued to invest in stocks, propelled by the success of various new fund offers (NFOs) and strong flows into equity funds. MFs had purchased stocks worth more than Rs 8,300 crore until August 23, according to the data provided on the Securities and Exchange Board of India (Sebi) website. Jimmy Patel, MD and CEO at Quantum AMC, says: "The surge in equity investments by MFs is because of two key reasons. One, equity NFOs are getting a strong response from investors, and fund houses need to deploy that money in the markets.
An NFO can be considered if its investment proposition is truly unique and suits the investor's risk profile
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.
The SIP route suits the salaried class, by matching their income flows with investment frequency.
Mutual funds (MFs) are lining up distinguished new fund offerings (NFOs) for the next financial year to win over investors after a lukewarm response to product launches in the 2022-23 financial year (FY23). NFOs drew a lukewarm response in FY23 as launches were mostly in the passive debt space, which has a comparatively lower popularity among retail investors. The limited launches in equity space also failed to rake in huge sums due to subdued investor sentiments in a volatile market.
India's total value of defence production breached Rs 1 trillion-mark in the fiscal year 2022-23 (FY23), up 12 per cent year-on-year (YoY). At the bourses, this has been well reflected in related-stocks from the sector as they gained considerable ground during this period. Shares of Hindustan Aeronautics (HAL), Mazagon Dock Shipbuilders, MTAR Technologies, Bharat Electronics (BEL), and Bharat Dynamics (BDL) have skyrocketed up to 160 per cent in a year, as against a 14 per cent jump in the S&P BSE Sensex.
DSP Merrill Lynch Fund Managers Limited Senior Vice President Anup Maheswari told reporters in Kolkata on Tuesday that the fund, to be launched next month, would target small and mid-cap companies having huge growth potential.\n
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
Investors would do well to appreciate the importance of blocking the noise and sticking to the basics of investing, especially at times when irrational exuberance is the order of the day.
Nikunj Saraf, Vice President Choice Wealth, will answers your queries.
Investors must put more emphasis on the fund house's investment style, the processes it follows and performance of like-natured schemes, before making an investment decision.
Investors are yet to warm up to the concept of sustainable investing with sustainable or ESG (environmental, social, and governance) funds in India witnessing outflows of Rs 315 crore in 2021-22. This comes following a staggering inflow of Rs 4,884 crore in FY 2020-21. Prior to that, sustainable funds saw an infusion of over Rs 2,000 crore, according to data compiled by Morningstar India.
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
If MSGF had shared the complete portfolio with its investors more frequently, the red flag on its misconceived investments might have been raised earlier.
Omkeshwar Singh, head, Rank MF, a mutual fund investment platform, answers your queries.
Omkeshwar Singh, head, Rank MF, a mutual fund investment platform, answers your queries.
Time for approving new fund offers down from 6 months to 2 months; MFs have mobilised Rs 4,000 crore from nearly 30 equity NFOs since October last year.
Mutual funds have launched a clutch of new fund offers in the silver ETF (exchange traded fund) category this year and collected Rs 1,400 crore in assets after the introduction of the newly-created investment asset class by market regulator Sebi in 2021. Further, fund houses including Kotak Asset Management Company have filed draft documents with the markets regulator to float silver ETF as well as silver ETF fund of funds for investors, information with the Securities and Exchange Board of India (Sebi) showed. These NFOs (new fund offers) are providing an opportunity to the investors to digitally invest and own silver which is easily tradable during market hours.
Mutual funds are all set to capture the buoyancy in the energy sector. The latest to join the bandwagon is Sundaram BNP Paribas Mutual Fund, which is coming out with a three-year, closed-ended new fund offering 'The Energy Opportunities Fund'. The fund will invest in equity and equity-related instruments of companies focussed on the energy space or those directly or indirectly benefiting from it.
RTSF will be managed aggressively like its diversified equity fund siblings; also the fund is likely to be a high risk - high return investment proposition.
MIPs can add significant value and investors must consider making allocations in line with their risk appetite.
Though both equity fund and stocks extend market-related returns, there are some key differences between the two. If you have similar misconceptions about equity funds and stocks, this article will demystify those misconceptions.
Don't buy mutual funds for these wrong reasons. Here's what you should be aware of while investing in mutual funds.
Fundraising via equity NFOs highest since 2008; Over Rs 11K cr collected in first eight months of 2017, says Chandan Kishore Kant
The primary investment objective of the scheme is to generate consistent long-term returns by investing predominantly in equity & equity related instruments of "companies that are focusing on Rural India".
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
One category which stands out is fixed maturity plans due to its tax benefits, notes Prateek Mehta, CEO and company-co-founder, Upwardly.in.
Sources said many individual investors were interested in applying for the NFO, due to additional benefits being offered such as upfront discounts and loyalty bonuses.
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
New retirement schemes from MFs offer Section 80C benefit but locks in your money for five years
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