Banks and mutual funds in India are earning abnormally high returns in money markets by breaching Reserve Bank of India rules forbidding forward trades.
Fund managers's compensation is largely tied to the assets they manage and scheme performance.
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.
A blue colour coded box would indicate low risk, yellow would signify a medium risk, while brown would represent schemes with high risk.
MFs have garnered record assets in the past one year, led by increased investor participation through SIPs and robust returns in mid-cap schemes.
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.
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.
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.
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.
Fund managers and wealth advisors say that in the long-term diversified equity funds are the best bet.
Mutual Funds added more than 7 lakh investors into equity schemes in August. Despite this, redemptions out-weighed investments in equity funds.
Omkeshwar Singh, head, Rank MF, a mutual fund investment platform, answers your queries.
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.
With stock markets getting into a buoyant mode, mutual funds are stepping up their draft filings with the regulator Sebi for new equity schemes.
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.
Domestic asset management companies (AMC) have launched around 60 new fund offers (NFOs) in the last six months and mobilised around Rs 27,000 crore. Fund houses are rushing to launch new funds amid buoyancy in the equities market.
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.
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.
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).
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.
Illustration: Uttam Ghosh/Rediff.com After a brief respite at the year's start, FPIs have dumped shares worth more than $5.7 billion (Rs 42,596 crore), taking the cumulative net outflows since October to $10.5 billion (Rs 78,466 crore), and adding to the volatility on the bourses. The figure would have been a lot worse had it not been for net purchases to the tune of $5.7 billion in the primary market from October to date.
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.
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.
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.
Earlier, distributors were assured of at least 2.25 per cent fees when retail investors bought any equity scheme. For instance, if a cheque of Rs 100 was given to the distributor, Rs 97.75 was invested and the rest Rs 2.25 went to the distributor as commission. Sebi's no entry load decision means distributors are no longer assured of a particular amount of commission because fund houses cannot make it mandatory for the investor to pay the same.
What are the points to consider when you evaluate a prospectus? Apart from looking at the fund's track record, latest performance and the credit worthiness of the fund managers, you need to look into the fund expenses as well.
The Reserve Bank of India and the Securities and Exchange Board of India are considering a proposal for allowing Indian mutual funds to invest up to $1 billion in world's biggest companies through equity indices like Dow Jones Global Titans Index.
January 2005 was clearly a testing month for most investors; however, such times can often demarcate serious long-term investors from those who are looking to make a quick buck.
