In an online chat with readers on August 10, Vidya Bala, Vidya Bala, head of mutual fund research at FundsIndia, answered their queries. For hose who missed the chat, here is the transcript.
The BSE market index, which surged past the 8,000 mark on Thursday, has recorded the second fastest 1,000 points rise ever -- taking just 55 days to race from 7,000 to 8,000.
Measured by returns in 2013, the top 10 funds had only three from large houses; nimble strategy could be a factor.
'This is the first time we will see how SIP investors react to market correction.'
The ranking is done on following parameters depending on the asset class.
Wondering if you did the right thing with your mutual fund investments?
Value investor Parag Parikh's sudden death has come asa big jolt to the fraternity.
More asset sales may be only way out, though most of the group companies' ratings have been downgraded and their combined market value is now a fraction of their combined debt.
Importantly, is there hope going forward?
In a nearly 10-year-old case, Sebi on March 24 had banned Reliance Industries and 12 others from equity derivatives trading for one year, while accusing RIL of making 'unlawful gains'.
Exodus of top managers an unintended side effect of roaring MF industry
Fund managers have been advising investors not to keep their return expectation higher
Some of the policy measures announced are expected to go a long way in removing current challenges on financing faced by businesses and also increasing economic activity, especially in areas of construction and manufacturing.
Large-cap scrips are still trading at a discount to mid-caps.
The shareholding of Apollo Tyres Limited promoter Onkar S Kanwar will come down by 6.54 per cent to 37.33 per cent after preferential allotment of 14.90 per cent of the company's existing shares to French Tyre major Michelin Group.
Institutional investors, including mutual funds and foreign institutional investors, have reduced their holding in IT training company Aptech Ltd by 4.22 per cent to 12.81 per cent during the quarter ended December 31 2002.
The Association of Mutual Funds in India (Amfi) has already taken up the matter with the market regulator and the finance ministry.
It's also important to understand the rationale behind choosing particular stocks and when to sell.
'Why are FMPs used as a vehicle for promoter funding against listed shares?' asks Debashis Basu.
So far in 2017, the Nifty has gone up by 22.4 per cent.
'To ensure you remain with the better performers, you need to consistently monitor your MF portfolios and weed out the non-performers, even if they are from a star fund manager or a fund house with a sound record.'
They are making switch to the high-growth alternative investments fund industry, reports Pavan Burugula.
Tax-saving investments should not be made with the sole purpose of saving tax, but should also help an individual grow his wealth, suggests Archit Gupta, founder and CEO, ClearTax.
'You need to be careful about this.' 'Growth without fundamental principles is like fat.' 'Growth with good base and fundamentals is like muscles.'
At a time when the whole world is going ga-ga over stocks and debt is too easy to borrow, do not forget gold, says Anil Rego.
Ravi Gopalakrishnan, head-equities, Canara Robeco Mutual Fund, tells Ashley Coutinho that earnings growth will pick up once the benefits of reform initiatives accrue.
'Macro headwinds are rising for Indian equities in the form of rising commodity prices, especially oil, depreciating rupee, fiscal challenges, election-related uncertainty and upside risks to inflation'
With real estate -- NRIs's favourite investment vehicle in the past -- unlikely to do well in the near future, there is a strong case for NRIs to shift to equity and debt mutual funds, says Prateek Mehta.
I would advise at least a 7 year investment time frame for Equity Investing
For a while, it seemed the markets were going on a free fall.
Valuations are much higher than the consensus earnings expectations warrant and also much too high in historical terms, says Devangshu Datta.
HDFC MF witnessed 17% rise in investment in its schemes to Rs 6,462 crore by group companies during May.
Strong MF investments, stemming of FII outflows and positive earnings in Q3 have helped market, say analysts.
The stock market regulator's definition of large, mid, and small-cap companies has irked mutual fund managers, reports Samie Modak.
Market players said the sell-off was triggered by pessimism that the government may not be able to balance growth with macro-stability.
Though the sum was nowhere close to the big-ticket monthly purchases seen during the 2004-2008 bull run, it is significant, as it confirms the reversal of a selling spree that began in September 2013.
Over the past 25 years the MF industry has come a long way. Geographic reach has increased, many more customers have been added, more channels have been opened up and the product basket is full.