Thinking beyond oneself and one's immediate environment is looked upon as a good trait in any person. But when this logic is extended to mutual funds, one might find it surprising. "Shouldn't mutual funds be concentrating on giving returns to the customer?" is a question that comes to mind immediately. Yes, they should.
If you are about to retire then the government savings schemes would suit you more. A word of caution here: do not take insurance to save tax. take it for the right reason - to secure the future of your dependents in your absence, says personal finance expert Rahul Goel.
Banks and mutual funds in India are earning abnormally high returns in money markets by breaching Reserve Bank of India rules forbidding forward trades.
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.
A blue colour coded box would indicate low risk, yellow would signify a medium risk, while brown would represent schemes with high risk.
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.
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.
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.
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.
Mutual funds provide the right opportunity to the millions of investors
Asset management firms relying heavily on liquid fund investments.
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.
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.
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.
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.
'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.'
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
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.
With stock markets getting into a buoyant mode, mutual funds are stepping up their draft filings with the regulator Sebi for new equity schemes.
Fund managers and wealth advisors say that in the long-term diversified equity funds are the best bet.
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.
Mutual Funds added more than 7 lakh investors into equity schemes in August. Despite this, redemptions out-weighed investments in equity funds.
Sudhanshu Singh, director IBBM, MM Securities, answers your mutual fund queries.
Under the new guidelines, the top 10 active equity schemes in terms of assets would collectively require investments of around Rs 365 crore -- up from mandated Rs 50 lakh at present -- in their own 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.
In a chat on rediff.com on Thursday, market expert Vinay Mahajan offered some valuable tips about investing in the stock markets.
'MFs acted as reckless lenders and not as prudent investors.' 'Clearly, how debt funds are being run is a systemic issue,' warns Debashis Basu.
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.
Anil Rego, CEO, Right Horizons, answers your personal income tax queries.
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.
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