'Of the 20 trading days of January till January 28, FIIs have been selling for 19 trading days'. 'When did FIIs withdraw money with this kind of intensity?' 'It never happened. It's the first. It did not happen even during the 2008-2009 financial crisis when Lehman went under.' 'Even then you did not have like a 19-day selling spree from the FIIs.'
The Securities and Exchange Board of India has scrapped entry loads on direct applications to MFs. This means that if you invest directly with the fund house by submitting your application forms at any of its collection centres, you don't need to pay entry loads (presently 2.25 per cent). Internet transactions done through the MF's website are also now exempt of loads.
In a falling market, the value of your investment keeps going down. However, the reduction in value is purely a notional loss if you remain invested. When you redeem in a falling market, the notional loss becomes a permanent loss, explains Anamika Pareek.
The majority have stayed away from getting into cash handling.
Novice investors must understand that volatility is an inherent part of equity markets and learn to navigate through such phases.
While the Sensex fell by as much as 19 per cent from the recent peak, a host of fund houses were fully invested. A majority of the fund houses were sitting on cash amounting to 1 to 4 per cent of their portfolios against an average of 5 to 7 per cent, data from Value Research, a fund tracking company suggested.
Mutual funds, as experts and custodians of another set of retail investors' savings, play a speculative game they are neither supposed to nor equipped to do, cautions Debashis Basu.
'For the same level of return, you can reduce portfolio volatility significantly with a 10% to 15% exposure to international funds.'
Post the change in debt fund taxation in March, a lesser-known hybrid fund has emerged as one of the alternatives for fixed-income investors. Equity savings schemes, the smallest hybrid fund category in terms of assets, have raked in around Rs 6,000 crore this financial year (FY24) so far compared to Rs 1,100-crore outflow in FY23. The inflows along with a strong performance led to a 50 per cent surge in assets under management (AUM) to Rs 24,100 crore during April-November, shows data from the Association of Mutual Funds in India (Amfi).
Before framing regulations to curb 'misleading' messages and stock recommendations by finfluencers (a portmanteau of the phrase 'financial influencers'), the market regulator plans to put in place some 'building blocks' to ensure smooth enforcement. Madhabi Puri Buch, chairperson of Securities and Exchange Board of India (Sebi), is of the view that the 'traditional approach may not work' to rein in finfluencers. "There are many interlinked pieces in our regulations - investment advisor regulations, research analyst regulations, the fact that we don't have algorithmic (algo)-related regulations, what brokers are permitted to do, and what is incidental advice.
Tata Mutual Fund's 'own a piece of India' offering is suitable for informed investors.
FOMO-driven investing is reshaping India's stock market. Swati Saxena explains how social media hype fuels risky bets and how to protect your wealth.
The category average return of mid-and-small-cap funds is 95 per cent.
Sebi's mandate restraining mutual funds, stock brokers, and other intermediaries from associating with finfluencers who do not come under the Sebi ambit will impact the earnings of finfluencers through sponsorships, tie-ups, or referral links, as these may dry up due to the restrictions.
Many retail investors, who are experiencing their first bear market, are shocked at the erosion in the value of their mutual fund (MF) portfolios. The pain is especially acute for those who had taken excessive exposure to sector/thematic and small-cap funds. Even international diversification has failed to stanch the bleed in this downturn.
This works only for longer-tenured ones such as income funds, as the element of interest rate risk is reduced.
'Despite the current uncertainties, the long-term outlook remains constructive due to strong fundamentals, government initiatives, and a stable banking sector.'
India and the UK have respected each other's political sensitivities during the negotiations for free trade agreement, with New Delhi agreeing to drop its demand on post-study work visas for students in exchange for Britain withdrawing its request to open up legal services here, an official said on Wednesday.
Nikunj Saraf, Vice President Choice Wealth, answers your queries
managers said the weaker rupee, which has driven up shares of technology companies, has helped the fund fetch better returns.
When billionaire Warren Buffet started his first fund in 1956 with eleven investors, he invested a token amount of $100 of his own money as "skin in the game". Buffet denies it but he is credited with coming up with the term describing those running a fund risk some of their own money in it. The mutual fund (MF) industry has more than Rs 81,200 crore riding on its schemes, shows a Business Standard analysis of data on sponsor and associate contributions from the Association of Mutual Funds in India (Amfi).
Delay your asset reallocation, take a call on debt after a few months.
'Investors should do proper analysis before putting in their money in NFOs as most new launches are in the high-risk thematic space.'
Long-term investors should never stop their SIPs during market corrections.
'To be able to sail through such volatilities, it is prudent to focus on quality.'
Larsen & Toubro, Axis Bank, Reliance Industries, UltraTech Cement, Mahindra & Mahindra, IndusInd Bank, ICICI Bank and Tata Steel were the other big gainers. Sun Pharma, HCL Technologies, Asian Paints, Nestle and Infosys were the laggards.
Analysts attribute this withdrawal trend to the nervousness ahead of US presidential elections and the fact that the markets raced ahead even as the economic recovery remained fragile back home.
Only if you are a conservative investor satisfied with index returns; but over long term actively managed funds give better returns in Indian markets
For investors, every cost-saving means higher returns.
We have millions of newbie investors who are clueless about how to handle sudden and severe adverse market reactions, which arrive from time to time, observes Debashis Basu.
Investors need to carefully assess country-specific risks. 'This is especially true of a market that is less transparent than the US.'
Nikunj Saraf, Vice President Choice Wealth, answers your queries.
A large proportion of passive funds has beaten actively managed large-cap funds with average one-year category returns for large-cap at 10.2 per cent
Multi-asset funds offer exposure to gold, which tends to do well in times of geopolitical tensions and inflationary pressures, suggests Sanjay Kumar Singh.
The tax filing season is here, and mutual funds have launched tax-saving products.
Balanced funds are suitable for investors who have low-risk appetite or are new to equities.Those with more than seven-year investment horizon should look at funds that have higher equity exposure.
Of the 70 international feeder funds, more than half have made losses in 2014.
Stocks offering attractive dividends contain downside better when the markets correct, advises Sarbajeet K Sen.
The assets under management of the 44-players mutual fund industry stood at Rs 24.55 lakh crore in May-end from Rs 23.93 lakh crore in April-end.
'A 10 to 15 per cent allocation to gold in portfolios reduces risk without compromising on potential returns.'
