While there is inherently nothing wrong with investing in an IPO, the decision to invest in one should be triggered by its ability to fill a gap in the investor's portfolio.
The central bank opened a special 14-day repo window of Rs 20,000 crore to enable banks to raise money and lend to the funds, but received only four bids for Rs 3,500 crore. RBI uses the repo route to lend money to banks and enhance liquidity in the system.
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.
DSP Merrill Lynch Mutual Fund on Monday launched three new schemes and targets to raise Rs 750 crore (Rs 7.50 billion) through the initial public offering for these schemes.
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.
Sinha says many fund houses not abiding by rules on minimum number of investors, awareness funds
Amid lowering of bank deposit rates and falling yields from traditional investment vehicles like gold and real estate, investors are fast shifting to financial assets. The MF sector is emerging a clear beneficiary of this trend.
T S Vijayan, whose five-term as the chairman of government-owned Life Insurance Corporation of India (LIC) ended on Tuesday, is likely to shift to UTI Mutual Fund as the new head.
Investing in mutual funds, stocks or any other asset is always rewarding if you hold on to them for at least five years or more.
Rules applicable from April 1, 2014; investors who have already redeemed will also have to pay tax
'The markets haven't corrected, that doesn't mean that they will only go up and up.'
Of the 280-odd equity schemes that have been in existence for five years or more, 190 funds or about 70 per cent of those funds have outperformed their respective benchmark indices.
A combination of fewer listings and falling 'average daily traded value' contributed to the drag in Q3.
With a slew of measures for mutual fund investors, Sebi has regulated that Selling of bonus units in mutual funds before nine months can lead to more tax liability, but it does not apply to stocks. This is because an amendment was made in the Income Tax Act, which prevents tax payers from 'bonus stripping'. This provision mentions that if there is any loss when the investor redeems bonus units in the first nine months the loss will not be considered as part of taxable income.
Fundraising via equity NFOs highest since 2008; Over Rs 11K cr collected in first eight months of 2017, says Chandan Kishore Kant
Industry players say improving the penetration beyond the top centres will require setting up more branch networks and empanelment of distributors.
The move follows the near Rs 60 crore (Rs 600 million) redemptions every month from the US-64 and ARS bonds in the last couple of years.
While comparing portfolios of various mutual fund schemes, investors must keep the following points in mind. Read on:
ICICI Bank, HDFC Bank, Infosys, SBI and L&T among fund managers' preferred bets.
Union Bank of India said HDFC Mutual Fund tied up with the bank to distribute its mutual fund schemes across India.
Indian asset management companies (AMCs) are likely to see a hefty spike in their valuations, after the last week's 5 per cent equity stake sale by Reliance Mutual Fund to US-based hedge fund Eton Park.
Unit Trust of India Mutual Fund, which commenced operations at the beginning of this month, is targeting to double its Assets Under Management to Rs 30,000 crore (Rs 300 billion) in the next 12 months, chairman and managing diector M Damodaran said.
Steep volatility in the markets has made fund managers cautious, awaiting opportunities to deploy the cash.
The assets under management of mutual funds are likely to cross Rs 600,000 crore (Rs 6 trillion) by the end of this fiscal as the continuing bull run in the stock markets and launch of new schemes by fund houses lures more investors.
The Aditya Birla group, led by Kumar Mangalam Birla, has taken charge of its mutual fund joint venture with Sun Life Financial of Canada by buying 1 per cent stake from the latter.
Market regulator also announces measures for mutual funds sector.
The cinematographer-turned-director has quite two projects lined up.
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
A Sebi concept paper put out today for feedback from the public said investors buying mutual fund products need not pay entry load for applications filed online or through collection centres of asset management companies.
Allaying investors' fears, Franklin Templeton AMC has said Sebi's order prohibiting the company from launching new debt funds will have no bearing on existing schemes managed by it. Sebi on Monday barred Franklin Templeton Asset Management (India) from launching any new debt scheme for two years and imposed a penalty of Rs 5 crore for violating regulatory norms in the case of winding up of six debt schemes in 2020. Also, it has been asked to refund investment management and advisory fees of over Rs 512 crore (including interest) collected with respect to the six debt schemes. This amount will be used to repay unitholders, as per Sebi order.
At present, 60 per cent of the mutual fund industry's corpus comes from fixed income schemes, which invest in stable return giving instruments such as government securities and bonds.
Ten Indian states contribute a lion's share of 95% or Rs 12.25 lakh crore.
To ease pressure due to the coronavirus lockdown, corporate have asked banks and the government for a six-month liquidity line, so that they can pay off their suppliers and employees.
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