The Unit Trust of India Asset Management Company on Saturday called for a lower tax regime for mutual fund industry for the benefit of average investors.
Four regionally strong banks -- Bank of India, Corporation Bank, Allahabad Bank and Oriental Bank of Commerce -- are in the fray to buy out sponsor's stake in UTI Mutual Fund that manages assets worth Rs 20,000 crore
The net inflows into active equity mutual fund (MF) schemes registered more than a twofold month-on-month rise in August, crossing Rs 20,000 crore, the highest in five months. This rise in net inflows was boosted by an 18 per cent growth in gross investments, driven by a record Rs 15,800 crore inflow through the systematic investment plan (SIP) route and Rs 5,000 crore collected by seven new fund offers (NFOs) in the active equity space, reveals data released by the Association of Mutual Funds in India (Amfi). Moreover, redemptions moderated in August, declining by 19 per cent to Rs 24,580 crore, after staying elevated in the previous three months owing to profit booking.
The Securities and Exchange Board of India (Sebi) has just released a proposal to alter the regulations pertaining to the sponsor system for mutual funds. One of the reasons for the proposed changes is that there are two conflicting regulations that need to be clarified. The other reason is that the sponsor system may itself be outdated as it stands, and the proposed changes would allow new entities such as private equity funds and portfolio management services to enter this space.
This is a good opportunity for long-term investors to pick quality small and midcap stocks at reasonable valuations.
The listing day gain-to-loss ratio for FY21 was 71 per cent, the highest since FY17, when it was 85 per cent.
HDFC Bank's latest shareholding data showed that the room for foreign investment has fallen just 5 basis points short of the threshold set by Morgan Stanley Capital International (MSCI) to fully include the stock in its indices. Currently, the index provider has applied an adjustment factor of 0.5 since the foreign room is less than 25 per cent. Removal of the adjustment factor will result in inflows of a massive $4.8 billion (Rs 40,000 crore) into HDFC Bank, according to Brian Freitas, a New Zealand-based analyst with Periscope Analytics.
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.
The combined assets under management of the 32 fund houses in the country fell to Rs 5,49,114.82 crore (Rs 5,491.14 billion) in January, against Rs 5,49,942.02 crore (Rs 5,499.42 billion) at the end of December, 2007, latest data available on the website of Association of Mutual Funds in India show.
India's mutual fund industry, led by market leaders Reliance Mutual Fund, ICICI Prudential and UTI MF, has witnessed a fall of over Rs 58,000 crore (Rs 580 billion) in its assets during March.Despite the fall, Reliance MF continued to be the most valued fund house in the country with Assets Under Management (AUM) of Rs 90,937.94 crore (Rs 909.37 billion) at the end of March.
Ajit Mishra, vice president, research, Religare Broking, answers your queries.
The mutual fund industry saw an average growth of 63 per cent in assets under management in 2006
In the face of tax blow, brokerages remain sanguine about the prospects of asset management companies (AMCs). A sharp correction in the shares of AMCs over the past three months factors in most of the negatives and turned valuations attractive, observe analysts. In its latest report, Kotak Institutional Equities (KIE) has upgraded HDFC AMC to 'add' (from 'reduce') and reprised 'add' and 'buy' ratings on the rest of the listed AMCs - Nippon, UTI, and Aditya Birla Sun Life.
The fall in the equity markets was to put some pressure on the balance sheets of the top five asset management companies (AMCs) in the country. But, two of them have managed to buck the trend, thanks to the rise in their average assets under management (AAUM).
Domestic fund houses forge pacts with foreign peers to mop up $7 billion.
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries
Six firms have qualified for managing EPFO funds.
The first private sector MF, Kothari Pioneer was registered in July 1993.
India's mutual fund (MF) industry had barely any retail footprint when it completed 50 years in 2013. MFs had Rs 7 trillion in assets under management (AUM) in March 2013, of which around Rs 5 trillion was in institution-focused debt funds. By comparison, bank deposits in the country stood at Rs 67.5 trillion around the same time.
A weak economy coupled with rising Covid-19 cases and inflation that is above RBI's comfort zone, geopolitical developments, and upcoming India Inc's second quarter results for FY21 could impact sentiment, analysts say.
EPFO is managing a corpus of Rs 6.5 lakh crore.
Experts say the impact on the schemes' NAVs may vary in the coming days, depending upon how fund houses treat the developments on VIL and whether there are any further rating downgrades or credit events.
"Fund houses look at merging schemes where there is a duplicity of content or if the scheme has been underperforming historically," says Aashish Somaiya, head (retail business), ICICI Prudential AMC.
With quarterly results indicating a good performance, Indian corporates are likely to fare well, taking advantage of the economic turnaround, according a review by Templeton Asset Management (India) Pvt Ltd.
Move over equity markets, mutual funds and bonds. Investors across India are these days picking up and trading in the latest investment avenue in town: the Gold Exchange Traded Funds.
Stay orders keep law out of citizen access even years after CIC rulings on opening market institutions to scrutiny
A formal sector worker can contribute towards pension scheme till the age of 58.
'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.'
One-sponsor-one-fund rule may set off merger as Amundi seen sponsoring two funds following buyout.
Ask rediffGURU Ulhas Joshi your mutual fund queries.
Mutual fund is an investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets.
rediffGURU Vivek Lala answers your income tax and personal finance queries.
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
Of the existing set of potential leaders, Bakhshi was clearly the only choice as he beat out other high-level candidates that included executive directors Anup Bagchi, Vishakha Mulye, NS Kannan, and Vijay Chandok who were lacking the all-round game that Bakhshi has.
Omkeshwar Singh, head, Rank MF, a mutual fund investment platform, answers your queries.
Hamsini Karthik reveals why the ongoing business rejig will help unlock value for shareholders of Grasim, Reliance Capital and Tube Investments
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.
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