India's stock markets corrected recently but foreign money is likely to chase China rather than India in the short-to-medium term, said Chris Wood, global head of equity strategy at Jefferies, on Thursday. Wood told the Business Standard Manthan Summit in New Delhi he is bullish about Indian equities from a long-term perspective, but for the short term he is cautious given the quantum of foreign investor (FII) outflows and valuation woes.
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Anil Rego, founder and CEO, Right Horizons, offers his expert advice to mutual fund investors.
To make wise investments in mutual funds you must know facts and myths about net asset value.
Parents must note some peculiar feature of child funds.
'Even if India is attractive, FPIs currently lack the funds to invest, as money is being redirected to the US.'
These mutual funds from LIC have been steady performers since the last 5 years
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'We may see this momentum going into 2025 and may keep up with the demand, given the strong pipeline.'
A look at stocks in the portfolio, corpus size and comparison with peers can help in selecting a fund.
When it comes to the average assets under management among the top five mutual funds, there has been a shuffle in positions. While Reliance Mutual Fund has been able to maintain the number one position at Rs 700 billion, ICICI Prudential has been pushed to number four from second spot by HDFC Mutual Fund. ICICI Prudential was above HDFC by Rs 73 billion in January-end 2008. But at the end of December, HDFC's assets were up by Rs 48.79 billion over that of ICICI Prudential.
Investor interest in the mutual fund industry as an avenue to generate long term wealth creation is rising with SIP's asset base touching an all-time high of Rs 4.67 lakh crore at May-end. Over the past five years, the systematic investment plan or SIP AUM has grown 30 per cent annually, twice as fast as the growth in the overall mutual fund industry's assets under management (AUM). According to data released by Association of Mutual Funds in India (Amfi) on Wednesday, SIP AUMs have seen a close to four-fold jump to Rs 4,67,366 crore as of May this year from Rs 1,25,394 crore as of August 2016.
Most portfolios are a mixture of stocks, bonds and cash equivalents. Usually, stock funds or equity funds are growth oriented, cash funds serve the liquidity purposes, and bonds yield income. As an investor it is wise to be in touch with your fund manager from time to time to relook at your asset allocation, which is an ongoing process.
In the second part of this five part series on top 25 mutual funds analysed by Value Research we produce the next best five mutual funds that investors can put their money in for the long term.
Co-location attracts institutional investors, which drives volumes for long-dated options, with higher realisations at lower costs.
'He will be remembered more for what he did as finance minister -- as someone who functioned well when the political fallout was taken care of.'
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Domestic passive mutual fund (MF) schemes will have to sell around Rs 1,500 crore worth of ITC Hotels shares once the demerged entity lists on the exchanges, according to estimates. Passive MF schemes - especially those tracking the Nifty 50 and Sensex - will have to offload their holdings in ITC Hotels as the stock will be excluded from the indices.
For some time now, Indian mutual fund investors have taken a fancy for star ratings that are accorded by select mutual fund research firms/agencies. These firms, based on certain pre-determined parameters, give a rating.
A primer on tax you pay on your mutual fund gains
With this, the total SIP contribution in the first seven months of the current financial year rose to Rs 57,607 crore as compared with Rs 52,472 crore in April-October 2018, according to the latest data from the Association of Mutual Funds in India (Amfi).
A lot of mutual fund advice/research out there is focussed on how investors must evaluate mutual funds. Unfortunately, that is often not enough, which explains why wrong mutual funds are still sold/bought and mis-selling continues to be the bane of the industry. As a result, a lot of investors who end up investing in the wrong investment are left very disillusioned with how their investments have performed. All this can be prevented if investors are armed with two rules.
Coming down heavily on MF players who in recent past chose to use shareholder fund to buy out debt of bleeding invested companies, Sebi said MFs can't have standstill agreements with companies and will take action against fund houses for such deals.
Aadhaar-based verification and video-based in-person verification for e-KYC have made investing in mutual funds a breeze
Equity flows turning positive could give fund managers firepower to invest in the markets. This could come in handy as flows from foreign investors have tapered off amid rising bond yields in the US.
Sebi has objected to the practice adopted by MFs to term their new offering as 'IPOs'.
Equity-focused schemes may perform better in a bull market, while debt-oriented ones may offer greater stability during volatile periods.
Mutual funds entails several costs, payable at different stages.
A special court in Mumbai has directed the Anti-Corruption Bureau (ACB) to register a first information report (FIR) against former Securities and Exchange Board of India (SEBI) chairperson Madhabi Puri Buch and five other officials in connection with alleged stock market fraud and regulatory violations.
What the mutual fund industry needs to do to improve basic information flow instead of restricting it.
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Anil Rego, CEO, Right Horizons, answers your personal income tax queries.