MF investors may not be able to support markets fall if selling intensifies
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A non-compliance with FATCA entails 30 per cent withholding tax on certain US source payments.
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
The performance is affected as bets on small- and mid-cap shares went wrong.
Financial planning expert Vicky Mehta offers some valuable tips on mutual funds.
They used to be an avenue of mutual gains for investors in both good and bad times for years, but incurred heavy losses in 2008, when mutual funds became poorer by about Rs 1,50,000 core (Rs 1,500 billion) or about one-third of their total size.
The Indian mutual funds, hit hard by redemption pressure, have something to cheer with the government allowing navratnas and mini-ratnas to invest 30 per cent of their surplus funds in equity market through public sector mutual funds.
Indian market offers more than 3,000 mutual funds with all kind of names imaginable. This has both pros and cons. The good part is that you have mutual funds which can specifically suit your needs and risk profile. The bad part is that you have to be able to select the right one. Here's how,
The Securities and Exchange Board of India, in September 2012, had allowed fund houses to accept up to Rs 20,000 in cash per investor, per mutual fund in a financial year.
'Investors need to find out how the FMP's assets are distributed and ensure the investments are in high-quality names.'
Investors must factor in the risks borne by them, if they wish to aptly evaluate the profitability of their investments.
Move seen as countering fund houses' plan to sell life covers.
With interest rates showing signs of going up, long-term floating rate debt mutual funds are catching the fancy of risk-averse investors as it promises better return than even bank fixed deposits, analysts said in New Delhi.
Investors redeem units worth Rs 2,000 crore in October.
You must buy stocks and mutual funds only with a long-term horizon if you want to make decent returns.
IndusInd Bank was the top gainer in the Sensex pack, rallying over 6 per cent, ahead of its earnings announcement. Axis Bank, Kotak Bank, ICICI Bank and Bajaj Finance too surged up to 5 per cent. On the other hand, NTPC, M&M, HDFC Bank, Bharti Airtel and ITC were the laggards.
In the last few years, unit-linked insurance plans (Ulips) have quietly become one of the largest players in the Indian stock market. With a total investment estimated at Rs 1.5 lakh crore to Rs 2 lakh crore, they are almost close to the investment made by equity mutual funds.
The Sensex comprises 30 large-cap stocks. So a rise in this index does not imply that all listed stocks have risen. The portfolio of the mutual fund may be totally different from the Sensex basket. It will declare its NAV purely on the basis of the performance of its own stock portfolio on that day.
There are, however, a few aspects to factor in before considering G-Secs as an investment option, advises Bindisha Sarang.
As an investment class, equity funds posted average returns of 93.50 per cent in 2003, much better than the 72.89 per cent recorded by the Sensex.
V Ramesh, CEO, Prabhudas Lilladher Financial Services, believes that investors with a long-term investment horizon in mutual funds should not panic as they can still make profits irrespective of the stock market volatility.
A point to remember is that the entry load is waived, only if I go through the fund's official website. Purchases through any other website will attract the entire entry load.
Continued outflows amid moderation of domestic investments are a concern
Assuming that the value of LIC's holding has risen in line with the markets, its portfolio size today could be around $86 billion, higher than the previous record of $84 billion in March 2018.
This will allow investors the freedom of choice based on the services they get from a distributor.
India's 32 mutual fund houses saw an erosion of over Rs 32,200 crore (Rs 322 billion) in their total asset under management last month, with a weak stock market robbing off some shine from their over Rs 5 trillion portfolio.
While the market may remain volatile this year, analysts expect equities to deliver positive returns by outperforming inflation and government bonds, supported by the fiscal stimulus in the US.
Investors' fascination for an 'out-of-the-ordinary' or 'fancy' investment avenue is baffling. There is an inexplicable urge in investors to add an unusual investment avenue to their portfolios. For example, a conventional diversified equity fund with an impressive long-term track record routinely gets the thumbs down. The reason being -- it's seen as a boring investment (whatever that means).
In a chat with Getahead readers on June 22, Dhruva Raj Chatterji research manager at iFAST Fundsupermart.com, AMFI registered mutual fund distributor, answered queries about contra and value mutual funds. For those who missed the chat here is the transcript.
On Tuesday, Reserve Bank raised the overseas investment limit by mutual funds to $5 billion from $4 billion earlier. Sources said as even $4-billion limit is not exhausted, there was no rationale in keeping the cap on individual mutual funds.
The proposal was open for public comments till September 12, 2007. The mutual fund industry is divided over the proposal as one section feels that it will hit the distribution business hard, while others think it will promote online transactions.
Investors who cannot manage an asset-allocated portfolio or rebalance regularly, or do not have an advisor, may opt for these funds, but only after a detailed study of their strategy, suggests Sanjay Kumar Singh.
Managing 5-6 investments is easy. But when the number of investments increases significantly, the problem starts creeping in.
'Avoid taking excessive credit risk via mutual funds such as high-yield fixed maturity plans and credit opportunity funds.'
Reliance Mutual Fund topped the AUM chart with its AUM in excess of Rs 660 billion, while ICICI Prudential Mutual Fund came second with an AUM of Rs 487 billion.
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