Mutual funds are increasingly launching schemes to take advantage of the infrastructure boom, both within the country and globally. The schemes will invest in companies that will benefit from the multi-billion dollar investments required in ports, roads, telecom, construction, engineering and aviation across the world in the coming years.
Domestic fund houses forge pacts with foreign peers to mop up $7 billion.
Banks and mutual funds in India are earning abnormally high returns in money markets by breaching Reserve Bank of India rules forbidding forward trades.
The regulator has asked portfolio managers not to leverage the portfolio of clients for investment in derivatives and not indulge in speculative transactions that are not accompanied by actual delivery, except for derivatives trades. This is done with the intention of reducing volatility in the market and curbing undue risks.
A blue colour coded box would indicate low risk, yellow would signify a medium risk, while brown would represent schemes with high risk.
Ajit Mishra, vice president, research, Religare Broking, answers your stock market queries.
Increasing awareness about mutual funds, ease of transactions through digitisation and sharp surge in equity markets have aided asset management companies to add a staggering 3.17 crore investor accounts in 2021-22, with experts saying the trend is likely to continue this fiscal as well. This was a significant rise from 2020-21 when 81 lakh accounts (or folios in mutual fund parlance) were opened, data with the Association of Mutual Funds in India (Amfi) showed. The ongoing financial year too appears to be promising in terms of folios as increase in investor accounts will enable people to move beyond fixed deposits and savings accounts, said Priti Rathi Gupta, founder of LXME, a financial platform for women.
Failure to do so leads to incorrect filing and under-reporting of income, with adverse consequences, advises Bindisha Sarang.
Our advice to investors is that they should adhere to the basics of mutual fund investing and evaluate mutual funds across parameters, including past performance.
Now that investors are waking up to mutual funds, they should understand a few intricacies of making the best use of that vehicle
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
Data from the Association of Mutual Funds in India show that in 2010-11 till date, gold ETFs have seen net inflows rise by close to four times, to Rs 1,169 crore (Rs 11.69 billion), compared with Rs 312 crore (Rs 3.12 billion) during the same period last year.
In a closed-ended scheme a mutual fund is allowed to charge initial issue expenses of up to 6% of the amount raised to the investor.
Mutual funds provide the right opportunity to the millions of investors
Asset management firms relying heavily on liquid fund investments.
Coming down heavily on MF players who in recent past chose to use shareholder fund to buy out debt of bleeding invested companies, Sebi said MFs can't have standstill agreements with companies and will take action against fund houses for such deals.
Retail investors have gained significant heft in the past year amid a sustained uptick in Indian equities. The share of retail investors in companies listed on the NSE reached an all-time high of 7.32 per cent in the quarter ended December 31, 2021, up from 7.13 per cent in the previous quarter and 6.9 per cent a year ago, the data from PRIME Infobase shows. This was despite the Nifty's 1.5 per cent decline during the quarter.
The Cabinet Committee on Economic Affairs will discuss the proposal to lift the ban on state-owned companies from investing in mutual funds in its weekly meeting on Thursday.
Mutual fund equity schemes which only invest in sectors such as banks and fast moving consumer products (FMCG) have emerged top performers across product categories in 2012. But these schemes face stiff challenges to repeat such outperformance in 2013.
Market regulator SEBI on Wednesday asked mutual funds to disclose investments in equity derivatives and said the combined exposure in equity, debt and derivatives should not exceed the net asset of a scheme.
The Securities and Exchange Board of India (Sebi) on Thursday hiked individual limits of mutual funds' investments in overseas equity instruments by $50 million to $150 million.
Zee and its lenders had decided to enter into an agreement to not offload the pledged shares amid a sharp slide in the prices of the underlying securities during end-Janury. The terms give the lenders a greater say, upside benefit from the proposed strategic sale, more cover and personal guarantee.
Fund managers and wealth advisors say that in the long-term diversified equity funds are the best bet.
With stock markets getting into a buoyant mode, mutual funds are stepping up their draft filings with the regulator Sebi for new equity schemes.
Market regulator Sebi on Thursday asked mutual fund houses to disclose the details of investor complaints on websites, as well as in annual reports, to enable clients to make more informed decisions.
The one-year returns for equity-oriented mutual fund (MFs) schemes have largely mirrored the gains made in the secondary market. However, schemes that invest in infrastructure (infra), small-cap, and public sector undertaking (PSU) banks have emerged standout performers, with gains in excess of 100 per cent in some cases. Of the total 484 equity schemes, 353 have managed to beat the Sensex, reveals the data provided by Value Research. Around 20 have delivered returns in excess of 90 per cent and six schemes have given returns of over 100 per cent in the past one year. The S&P BSE Sensex Total Return Index (TRI) has given returns of 51 per cent in the last one year, ended October 29.
Mutual Funds added more than 7 lakh investors into equity schemes in August. Despite this, redemptions out-weighed investments in equity funds.
The primary issue market has hit an all-time high with 63 corporates raising Rs 1,18,704 crore through main-board initial public offerings (IPOs) so far in 2021, which is nearly 4.5 times more than the Rs 26,613 crore raised through 15 issues in 2020 and almost double of the previous best of Rs 68,827 crore in 2017, according to a report. Pranav Haldea, managing director of Prime Database Group, said the IPO frenzy was driven by new-age loss-making technology start-ups along with strong retail participation, and the resultant massive listing gains were the key highlights of the year. Another highlight was only 51 per cent or Rs 103,621 crore of the total Rs 202,009 crore was fresh capital raising and the remaining Rs 98,388 crore were offers for sale.
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
The decline in MF assets follows profit-booking seen on the bourses and jittery market sentiment that led to investors pulling out their money from equity-linked MF schemes.
In a chat on rediff.com on Thursday, market expert Vinay Mahajan offered some valuable tips about investing in the stock markets.
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
'Sebi has to make sure that investor interests are protected and at the same time, there isn't over-regulation so that companies don't get discouraged to list here.'
Investors got the upper hand in 2009, while fund houses struggled to cope with regulatory changes and upheavals in the economy, even as the industry shrugged off recession blues with its assets hitting an all time high of Rs 8 lakh crore (Rs 8 trillion).
Investors can now park money in practically all overseas firms via domestic mutual funds (MFs). The removal of this key deterrent will encourage investment in the funds.
Exchanges will have to facilitate a more direct interface between clients and the clearing corporation, bypassing intermediaries such as brokers, under this new proposed framework.
