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.
Total MF investments in debt papers like certificate of deposits, commercial papers and collaterised borrowing and lending obligations stood at around Rs 184,000 crore at the end of February. Industry experts said that by March-end, this corpus had depleted by over 50 per cent. "The industry would have lost around Rs 1 lakh crore as banks and institutions redeemed their investments during the last week of March," said Jaideep Bhattacharya of UTI Asset Management Company.
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.
Omkeshwar Singh, head, Rank MF, a mutual fund investment platform, answers your queries.
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.
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
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.
Some fund houses have modified the terms of their schemes. How does it impact you?
Now that the stock markets are in a treacherous arena these pointers will help you keep your head above the water.
'MFs acted as reckless lenders and not as prudent investors.' 'Clearly, how debt funds are being run is a systemic issue,' warns Debashis Basu.
The Unit Trust of India Asset Management Company on Saturday called for a lower tax regime for mutual fund industry for the benefit of average investors.
Financial planning expert Vicky Mehta offers some valuable tips on mutual funds.
Financial planning expert Vetapalem Sridhar gives tips on how to build a good mutual fund portfolio for the long-term.
Financial planning expert Irfan Rupani offers some valuable tips.
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.
Financial planning expert Irfan Rupani replies to readers' queries on mutual funds.
G-secs offer good liquidity, high safety. If the interest rate dips, as is widely expected, these could give you higher gains.
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.
The move comes less than two months after the Union Budget clarified that returns from pass through certificates were tax-exempt.
The net outflow in February was, however, the lowest in eight months following a huge outflow of Rs 5,212 crore (Rs 52.12 billion) in January 2013, according to an analysis of latest data available with market regulator Sebi.
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
The number of fund houses are increasing each year in the fast growing Indian economy but when it comes about the size, the top five players control over half of the country's mutual fund business.
U K Sinha, new Sebi chairman had, in an interaction with its MF division, made his view clear on the need for some moves to spur overall development for the sector, persons familiar with the development said.
Equity investments are fruitful over the very long 20-year term.
Mid cap stocks (and subsequently mid cap funds) have been the worst hit in the recent stock market crash. Investors who added mid cap investments to their portfolios without understanding their true nature are a dismayed lot. Typically, mid caps are presented as an opportunity to make quick money; sadly, investors are rarely made aware of the higher risk involved. While there is no doubt that if identified correctly, mid caps can contribute significantly.
'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.'
The Reserve Bank of India on Thursday raised the overall limit for overseas investment by domestic mutual funds from $5 billion to $7 billion. Industry estimates peg the amount invested overseas at $1 bn to $2 billion. Only last September, RBI had raised the overseas investment limit for mutual funds from $4 bn to $5 bn. RBI said the overall ceiling for investment in overseas exchange-traded funds will continue to be at $1 bn. There are about 17 schemes that invest overseas.
ETFs are like stocks as they trade on the stock exchan#8805 but they are shares of a portfolio, not of a company.
Fund managers say the recent fall is not going to sustain.
According to an analysis by Value Research, the 'diversified equity' schemes that are most popular among investors lost an average of 28.3% in the past three months period. Although there were losses in the January-March period, there were huge positive returns in the previous three quarters. Funds in the diversified equity category gained an average of 21.4% over the four quarters in FY 2007-08, with individual schemes returns ranging from a gain of 53.7% to a loss of 7.9%.
MFs are planning schemes that will give fund managers the leeway to adopt strategies in line with the market conditions. Fund houses want to ensure they are not restricted by the fund's investment mandate about having to invest in certain sectors even in case of change in sentiment. According to the offer document, if the fund manager expects the markets to head downwards, the scheme can hedge exposure to equity either fully or partially by initiating short futures positions.
But increase in surcharge for DDT to impact debt funds.
Now SEBI registered Mutual Funds would be allowed to accept subscriptions from foreign investors who meet the Know Your Client (KYC) requirements for equity schemes.
Anil Rego, CEO, Right Horizons, answers your personal income tax queries.
Equity shares or equity mutual funds are not suited for investment horizons less than 3 years in our view. for a one and a half year period consider FMPs or bank deposits, says personal finance expert Rahul Goel.
MF assets remained unaffected by the January market crash, said research firm Crisil. Some fund houses even registered an increse in AUMs.
Funds like Franklin India Tax Shield makes it to the list of good tax saving schemes, says Rahul Goel.
