When star mutual fund managers quit their jobs to start their own ventures, they have often begun their new innings by becoming portfolio management service (PMS) providers. Over the years there has been an influx of fund managers - they could earn big if they succeeded on their own - and alongside there are wealthy clients looking for an edge beyond that offered by traditional mutual funds.
Mutual funds' average cash holdings in equity schemes topped 6 per cent in February as fund managers went slow on deployment of new inflows on expectations of better buying opportunities amid uncertainties in the market.
Front-running is a fraudulent practice where traders exploit advance knowledge of large client orders for personal profit.
After overtaking foreign portfolio investors (FPIs) in market ownership, domestic institutional investors (DIIs) have further solidified their dominance. DII ownership reached a new all-time high of 17.82 per cent as of June 2025, up from 17.62 per cent at the end of March 2025, according to an analysis by Prime Database.
An algorithm, instead of the fund manager, decides which stocks are attractive and give returns to beat the market.
Ask rediffGURU and PF and MF expert Janak Patel your mutual fund and personal finance-related questions.
Index funds and exchange-traded funds (ETFs) have added a record number of investment accounts in 2024, buoyed by the sectoral and thematic investing euphoria that has spilled into the passive space.
The Securities and Exchange Board of India (Sebi) is set to introduce key reforms aimed at facilitating smoother mega initial public offerings (IPOs). Key among the proposals is a reduction in the quota reserved for individual investors - those applying for less than Rs 2,00,000 per application - from the current 35 per cent to 25 per cent for large IPOs (issue size above Rs 5,000 crore).
MNC funds invest in companies where foreign promoters have more than 50 per cent shareholding.
Here's a formula that helps you understand how much money you will need to retire early in India and simple steps to achieve it.
Paytm's parent company One97 Communications president and chief operating officer Bhavesh Gupta has resigned from the company, an official statement said on Saturday. As part of a change in leadership structure, fintech firm Paytm has appointed Rakesh Singh as chief executive officer of Paytm Money.
They are making switch to the high-growth alternative investments fund industry, reports Pavan Burugula.
The improving outlook for the power sector has caught the interest of dividend yield funds. In the first four months of the current financial year (2023-24, or FY24), five of the six largest dividend yield funds have shown a notable increase in their exposure to stocks within the power sector. Some have even introduced new stocks to their portfolios.
'Arbitrage funds make the most sense for those in the 30 per cent tax bracket, are viable for those in the 20 per cent bracket, but less so for those in the 10 per cent bracket.'
Some situations almost demand that you hit the sell button.
Automobile sector accounts for the third-highest equity mutual fund contributions.
Let's Make Savings As Exciting As Spending. This World Savings Day, rediffGURUS Nitin Narkhede, Milind Vadjikar and Ramalingam Kalirajan are all set to answer your queries on savings and investments.
'The outlook for the next Samvat is more constructive, as many of the earlier drags are gradually becoming supports.'
Mutual funds (MFs) have significantly increased their ownership across market segments, but the midcap space stands out with comparatively higher growth. Data reveals that the number of midcap companies with over a fifth of MF ownership has doubled from nine in March 2022 to 18 by March 2025. In contrast, largecap stocks saw only a marginal rise, from three to four such companies during the same period.
'As we navigate uncertain waters, a conservative approach to largecap investing could provide a strategic advantage.'
Ramalingam Kalirajan explains the pros and cons of both investment types.
In January, SIP account closures surpassed new registrations for the first time.
Ask rediffGURU and PF expert Nitin Narkhede your mutual fund and personal finance-related questions.
The proposed guidelines cover several key parameters, including governance, investor protection, disclosure, testing frameworks, fairness and bias, and data privacy and cybersecurity measures.
All transactions in the units of an asset management company's mutual funds exceeding Rs 15 lakh executed by designated persons, trustees, or their immediate relatives must be reported to the compliance officer within two business days from such transactions, Sebi said on Tuesday. The threshold of Rs 15 lakh could be either in a single transaction or multiple transactions within a quarter, per PAN, across all schemes except exempted ones. The new rules will be applicable from November 1, the Securities and Exchange Board of India (Sebi) said in a circular.
Inflows into equity mutual fund (MF) schemes declined for the third month in a row in March even though the equity market recovered sharply. Equity MF schemes raked in a net Rs 25,082 crore in March, down 14 per cent from February.
'The danger is that when the music stops, the fall will be sudden, faster, and deeper than anyone expects,' warns Debashis Basu.
'Market momentum and investor interest are at unprecedented levels, making this the opportune moment.'
The BSE Sensex plunged by about 35 per cent in the last six months. The benchmark index which was over 20,000 level in January, is currently hovering around 13,000. Pre-IPO placement that was intended to offload about 11 per cent of the post diluted shares has also been put on hold, sources said pointing out that the company would revisit its capital raising plan once the market condition improves.
Specialised investment fund (SIF), a new asset class, will have the same expense structure as that of mutual funds (MFs), according to rules notified by the Securities and Exchange Board of India (Sebi). SIF, which was first proposed by Sebi in July 2024, aims to fill the gap between MFs and portfolio management services (PMS), and it looks at informed investors, who are willing to take riskier bets.
When it suits them, fund houses promote a star fund manager to draw investors. The star fund manager's track record in identifying stocks/trends is publicised extensively. NFOs (new fund offers) are launched on the premise that the star fund manager will repeat his stellar performance and give investors a good enough reason to invest in the NFO.
Capital markets regulator Sebi on Monday cleared a proposal to introduce a new asset class for high-risk profile investors to bridge the gap between mutual funds and portfolio management services in terms of flexibility in asset construction. The minimum amount of Rs 10 lakh can be invested for the new asset class per investor across all investment strategies of the new product in a particular AMC.
People with modest incomes can also build a crore-worthy portfolio by investing small amounts consistently, says Ramalingam Kalirajan, and shows how the magic of compounding works.
By taking the mutual fund route, investors can take exposure to gilts with small amounts. Over a decade or more, returns from these funds tend to be sound.
A grooming branch network for servicing HNIs is a stepping stone for a full-fledged wealth management business.
Quant funds are a unique offering in the MF space as the investment decisions are driven by a blend of active and passive strategies.
HDFC Asset Management Company (HDFC AMC) reported a healthy profit after tax (PAT) of Rs 430 crore for the July-September quarter (Q2) of financial year 2023-24 (FY24). It rose 20.2 per cent year-on-year (Y-o-Y) and decreased 8.4 per cent quarter-on-quarter (Q-o-Q). This was driven by good equity returns, leading to a sequential improvement in revenue yields.
The fear of losing purchasing power due to inflation and low-interest rates has led many to explore safe alternatives to fixed deposits with high returns
'From a risk-return perspective, large-cap funds may generate lower-than-historical average returns in 2024, whereas mid-, and small-cap funds hardly have any upside left.'
Following the sharp run in markets, valuations across the board have become elevated. The National Stock Exchange Nifty50 Index now trades at a 12-month trailing price-to-earnings (P/E) multiple of 24.3 times, 18 per cent higher than this year's low of 20.5 times. The valuation expansion in the broader markets has been sharper.
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