The mutual fund industry saw a sharp decline in its average assets in June -- with over 36 per cent plunge for some companies -- as investors withdrawal offset gains from an upward move in the equity market.
Demonetisation could see anywhere between Rs 8 and 12 lakh crore coming into the banking system in the next few weeks.
12 important facts every mutual fund investor must know.
Nearly three-fourths of the debt money, as of April 30, 2019, was invested in securities with duration of less than three years.
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According to market regulator Securities and Exchange Board of India, MF investments in banking stocks reached Rs 48,419 crore (Rs 484.19 billion) as on May 31, accounting for 21.59 per cent of their total equity assets under management (of Rs 2.24 lakh crore or Rs 2.24 trillion).
They own 27.5% in top 75 listed firms; investments bounce back after falling two straight quarters
'Equities are not cheap; I need to buy at levels I am not comfortable with; I need to 'create' a rationale about some stocks we are buying into; we have no clue about the prospective earnings of sectors or companies; most of our 'buy' reports are based on a nebulous understanding of the future; on most occasions the profits we project do not materialise.'
The recent weakness in stock markets has provided an opportunity to buy quality stocks relatively cheaper
The mutual fund industry's average assets under management grew by Rs 86,355.19 crore (Rs 863.55 billion), or 15.66 per cent, and analysts said the increased inflows into fund houses show that investors are regaining confidence in equity schemes. The combined average AUM of the 35 fund houses in the country increased to Rs 6,37,609.41 crore (Rs 6,376.09 billion) in May compared to Rs 5,51,25,422 crore (Rs 5,51,25,4.22 billion) in April.
Ideally, one should opt for a 5 to to 10- year period in an MF scheme or exit when the goal is reached.
'It is easy to dramatise the events of today, but it is far more important to focus on the fact that we have a radically overvalued financial sector. It is a house of cards.'
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
FIIs have turned out to be the biggest buyers of Reliance Power's IPO. Reliance Power's FII are holding over ten-times of mutual funds.
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
'Is it advisable to have more number of scrips in small quantities or a few scrips in big quantities?'
Domestic institutional investors (DIIs) may not be net buyers of Indian equities in the near term on lack of inflows and are likely to continue with redemption or sit on sidelines, mutual fund officials said.
On the face of it, capital protection schemes of mutual funds look good. But are they really what they are billed to be? Find out if you should buy
Sundaram Select Small Cap Fund is one of the few NFOs that offer some unique features to the investors which will be beneficial to them in the long run.
While investing in mutual funds, it is essential that you focus on the turnover rate percentage of a mutual fund, which is bought and sold every year.
This was the second consecutive yearly outflow from such funds.
Mutual Funds added more than 7 lakh investors into equity schemes in August. Despite this, redemptions out-weighed investments in equity funds.
Soon after the finance ministry cleared the haze on tax treatment of equity linked savings scheme, fund managers are lining up such policies to tap investors eager to participate in the stock market boom and simultaneously save tax. \n
Strong MF investments, stemming of FII outflows and positive earnings in Q3 have helped market, say analysts.
But this might not be the best time to enter these, as probability of further reductions in near future is low
Jayesh Gandhi, Fund Manager, Birla Mutual Fund says that they have exposure to Allahabad Bank, IOB, PNB and Union Bank.
"The 21,000 level is meaningless. In the past five years, earnings have grown 40 per cent. One should look at the P/E. We are very positive on the market despite elections being around the corner," says Milind Barve MD, HDFC AMC.
While the number of international MF schemes is increasing, so is the confusion for investors.
Ajit Mishra, vice president, Research, Religare Broking, answers your queries.
Importantly, is there hope going forward?
'To ensure you remain with the better performers, you need to consistently monitor your MF portfolios and weed out the non-performers, even if they are from a star fund manager or a fund house with a sound record.'
Ajit Mishra, vice president, Research, Religare Broking, answers your queries.
'Debt mutual funds are a good option now because interest rates are coming down.' 'Retail investors must put a majority portion of your money in short-term debt funds (1 to 3 years) and only a small portion in actively managed dynamic funds.'
In an online chat with readers on August 10, Vidya Bala, Vidya Bala, head of mutual fund research at FundsIndia, answered their queries. For hose who missed the chat, here is the transcript.
Though the sum was nowhere close to the big-ticket monthly purchases seen during the 2004-2008 bull run, it is significant, as it confirms the reversal of a selling spree that began in September 2013.
In a growth market, these funds should not form more than 10-15% of your portfolio. Invest with a horizon of at least 5 years
Experts say investors should stay patient and stay invested in mutual funds.
Dear readers, we had asked you to send in your personal finance queries to be answered by Basis founder and CEO Hena Mehta. Here's the first batch of responses.
One should base the decision on one's potential liability under the new tax rules.
