MFs have garnered record assets in the past one year, led by increased investor participation through SIPs and robust returns in mid-cap schemes.
The report on Mutual Funds Investments released by Research and analytics firm, Boston Analytics, suggests investors are holding back from putting their money in mutual funds because of their perceived high risk and a lack of information on how mutual funds work.
Retail investors now own a bigger slice of smallcap companies than at the start of 2023-24 (FY24), underscoring their growing conviction about investing in this red-hot space. Data from Capitaline shows mutual funds' (MFs') average holding in the National Stock Exchange Nifty Smallcap 250 rising to 9.26 per cent from 8.67 per cent during the first six months of FY24, with the number of companies with over 20 per cent MF holdings increasing from 24 to 28. In comparison, MF holdings in Nifty50 companies have gone up only marginally, from 9.67 per cent to 9.75 per cent.
Drop in the number of schemes is less than 3%, despite merger of 38 schemes between Sept 2017 and May this year
Rebalance your portfolio in case it has become overweight on equities vis-a-vis your strategic asset allocation.
Now STPs or variable SIPs can earn better returns than vanilla SIPs.
After nearly four years of underwhelming performances in equity schemes, Aditya Birla Sun Life Mutual Fund (ABSL MF) is experiencing a revival. During the first quarter of the 2023-24 financial year (Q1FY24), the fund house arrested its declining market share, bolstered by stronger equity fund results and subsequent ratings upgrades. Mahesh Patil, the chief investment officer, attributes this resurgence to changes in the fund management team and adjustments to investment strategies.
Fund houses are exploring ways to differentiate themselves in the hybrid space. A relatively unknown hybrid fund variant, Balanced Hybrid, is about to see its first launch since the introduction of mutual fund (MF) scheme categorisation norms in 2017. WhiteOak Capital MF has filed papers with the regulator for this scheme, which comes amid increasing interest in the hybrid space. MFs anticipate that hybrids will become the preferred category for investors with a lower risk appetite following changes in debt fund taxation.
Experts say you should be certain of living in a city and locality for a long time before purchasing a home.
The net financial savings of the household sector has moderated to 5.1% of GDP in FY23 from 7.6 per cent in FY20, as households shifted their savings to physical assets amid low interest rates during the pandemic, according to State Bank of India's (SBI) Research report.
Only a fifth of foreign portfolio investors (FPIs) in breach of the market regulator-specified thresholds may need to provide enhanced disclosure on ultimate beneficiaries, thanks to exemptions being provided, according to people in the know. The ultimate beneficial ownership (UBO) disclosures, for FPIs with over 50 per cent holding in a single corporate group or over Rs 25,000 crore exposure to Indian assets, will be required from February 1. But, depending on their category, FPIs will have 10-30 working days to submit these granular details.
However, it is noteworthy that foreign investors pumped in money on the day of election results as the mandate became clear
As much as Rs 3,204 crore (Rs 32.04 billion) of bank deposits by mutual funds will move out of the banking system from mid-July following a new rule
Investors must adopt a balanced approach, incorporating both styles in their portfolios.
The Softbank-backed company has set a price band of Rs 72 to Rs 76 per share for the maiden share sale and is expected to test the appetite for new-age loss-making companies.
MF assets remained unaffected by the January market crash, said research firm Crisil. Some fund houses even registered an increse in AUMs.
Several exchanges are facing a cash crunch with committed investment not coming from venture capital funds and trading activity seeing a sharp decline, reports Rajesh Bhayani.
Head of Fundsupermart.com recommends these as they are trading at a discount to their high prices in 2008.
One fear among regulators is that allowing side pocketing could lead to fund managers taking higher risks. Even in the US, side pocketing is not allowed in mutual funds, only in hedge funds
While large-cap funds, in three months, yielded gains of 26.3%, small-cap funds are up 37.9%, and mid-cap funds fetched returns of 29.9%.
Monthly systematic investment plan (SIP) flows into India have held steady above Rs 13,000 crore in 2022-23 (FY23) in the face of markets delivering muted returns in 18 months. However, it is not a rose-tinted view when it comes to viewing new SIP registrations and the cessation of existing ones. The ratio of SIPs stopped as a percentage of fresh SIPs registered (called SIP stoppage or closure ratio in industry parlance) stood at 56 per cent in the first 11 months of FY23, compared with 41 per cent during the same period of 2021-22 (FY22).
'Expectations are high regarding the change in LTCG with respect to equity investments.'
If you are overweight on fixed-income instruments, go for ELSS, and vice versa.
'Granting the country's highest civilian honour to Prime Minister Modi was surprising as it indicated the government was going out of its way to have India as a close partner.'
Arbitrage schemes can give investors better post-tax returns than debt funds.
The fund industry may have embraced machines and robots, but managing money still needs the human touch
Eighty per cent, or 60 of the 75 companies that made their debut on the mainboard this financial year, ended their listing day with gains.
'Understand how wedding expenses fit into your overall financial situation.' 'Evaluate how different levels of spending will impact other goals like retirement, travel, or housing.'
Investors across age groups and risk appetite can invest in these schemes.
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
The average difference in expense ratios between a regular and direct plan is 100 to 120 basis points. For those who need hand holding, spend the 100 to 120 basis points and get advice on the right schemes that suit you. Don't land up buying a scheme with low expense, but lower returns.
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
'Continue with your SIPs to get the benefit of lower average prices in this challenging market environment.'
Gold is an excellent asset class for diversification and should be included in all long-term portfolios.
Nikunj Saraf, Vice President Choice Wealth, answers your queries.
The froth in the small and midcap (SMID) space is limited to a few pockets, but regulatory scrutiny could lead to sustained volatility, observe India's top-drawer wealth managers. They add that they have been advising clients to reduce their exposure to smallcaps. Anand Rathi Wealth, which manages investor wealth through mutual funds (MFs), reports that its exposure to smallcap stocks, both through MFs and directly, has decreased by nearly 7 percentage points in the past few months, now standing at 23 per cent.
Adani group firm Adani Ports & SEZ paid Rs 1,500 crore loan and promised to repay more as the embattled conglomerate mapped a comeback strategy after a sellout triggered by a damning report by US-based Hindenburg Research. Adani Ports and SEZ paid SBI Mutual Funds' due amount of Rs 1,500 crore on Monday and will also pay another Rs 1,000 crore of commercial papers due in March (as per the payment scheme), a company spokesperson said. "This part prepayment is from the existing cash balance and funds generated from the business operations," the spokesperson said.
Ideally, one should opt for a 5 to to 10- year period in an MF scheme or exit when the goal is reached.
