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.
HDFC and HDFC Bank's merger - touted as India's biggest-ever corporate merger - pumped up shares of the two entities on the bourses. Shares of Housing Finance Development Corporation (HDFC) skyrocketed 9 per cent while those of HDFC Bank zoomed 10 per cent. In comparison, the benchmark S&P BSESensex and the Nifty50 indices settled 2.2 per cent higher on Monday.
Some fund houses have modified the terms of their schemes. How does it impact you?
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.
Now that the stock markets are in a treacherous arena these pointers will help you keep your head above the water.
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.
Financial planning expert Irfan Rupani replies to readers' queries on mutual funds.
The Income-Tax (I-T) Department nowadays provides pre-filled forms to make the filing of income-tax return (ITR) easier. Nonetheless, you must have a number of documents handy at the time of filing return so that you can cross-check the data in the pre-filled form. "Filing ITR doesn't require you to upload any document. But in case an assessing officer makes an inquiry, you will need to present documents and certificates as proof," says Deepak Jain, chief executive, TaxManager.in.
Nikunj Saraf, Vice President Choice Wealth, will answers your queries.
G-secs offer good liquidity, high safety. If the interest rate dips, as is widely expected, these could give you higher gains.
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
The move comes less than two months after the Union Budget clarified that returns from pass through certificates were tax-exempt.
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.
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.
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.
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.
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.
Nikunj Saraf, Vice President Choice Wealth, answers your queries.
But increase in surcharge for DDT to impact debt funds.
'MFs acted as reckless lenders and not as prudent investors.' 'Clearly, how debt funds are being run is a systemic issue,' warns Debashis Basu.
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.
"This decision of removing initial issue expense will make close-ended mutual fund schemes less expensive for retail investors", Sebi chairman M Damodaran said while briefing reporters after the board meeting. The Sebi board also cleared the draft proposal for listing of debt securities, ease disclosure norms for existing debt market securities and paved the way for permanent registration of capital market intermediaries.
Infosys has reclaimed the top spot from ITC on the funds' popularity chart, according to an analysis by Crisil.
ETFs are like stocks as they trade on the stock exchan#8805 but they are shares of a portfolio, not of a company.
If you continue to invest Rs 10,000 per month till you retire, assuming a return of about 15 per cent, you should be able to accumulate Rs 1 crore, says financial planning expert Rahul Goel.
'Largely, new demat accounts are now being opened by the younger crowd, particularly GenZ.' 'This is great news since younger investors start their journey with very little capital, so they are risking less.'
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
Fund managers say the recent fall is not going to sustain.
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.
