Anil Rego, CEO, Right Horizons, answers your personal income tax queries.
'The markets haven't corrected, that doesn't mean that they will only go up and up.'
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.
Now that the stock markets are in a treacherous arena these pointers will help you keep your head above the water.
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.
Equity flows turning positive could give fund managers firepower to invest in the markets. This could come in handy as flows from foreign investors have tapered off amid rising bond yields in the US.
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.
Some fund houses have modified the terms of their schemes. How does it impact you?
The levy of retrospective tax on the UK's Cairn Energy Plc is a tale of bizarre twists and turns that saw its attached shares being sold in May 2018 amid the passing of the baton from a full-time finance minister to interim one and the talks at the highest level to resolve the dispute, to claims that levy of back taxes was a result of an investigation into Panama Papers leak. The government late last month refunded about Rs 7,900 crore it had collected from selling residual shares of the British firm in its erstwhile India unit, seizing dividend and withholding tax refunds, to settle an eight-year-old dispute that had tarred the country's reputation as an investment destination. But, this did not come about easily. For seven years, the establishment vehemently justified in courts and outside seeking of Rs 10,247 crore in back taxes plus interest and penalty from a firm that gave India its biggest onshore oil discovery.
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.
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.
G-secs offer good liquidity, high safety. If the interest rate dips, as is widely expected, these could give you higher gains.
Equity investments are fruitful over the very long 20-year term.
Financial planning expert Irfan Rupani offers some valuable tips.
The move comes less than two months after the Union Budget clarified that returns from pass through certificates were tax-exempt.
Financial planning expert Irfan Rupani replies to readers' queries on mutual funds.
Fund managers say the recent fall is not going to sustain.
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.
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.
ETFs are like stocks as they trade on the stock exchan#8805 but they are shares of a portfolio, not of a company.
But increase in surcharge for DDT to impact debt funds.
Will 2022 be a year of contrasting narratives -- one filled with caution and the other with continued optimism?
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.
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.
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.
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.
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.
Last year ended on a positive note in terms of investment in the domestic equity mutual funds; thanks to a rise in the equity markets during the month of December.
Total exposure of equity mutual funds to banking stocks is over Rs 42,000 crore - the highest level in more than three years.
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