Page 20 - Mutual Fund

MF inflows: Don't stop SIP till you need money, say fund managers

What should the country's mutual fund (MF) investors, with in-built high return expectations, do in 2018? Given that fund managers do not expect a repeat of 2017 in terms of high return?It is a year marked by election schedules and likely to be quite volatile, due to domestic and global factors. And, say fund managers, investors must not stop their Systematic Investment Plans or SIPs in uncertain times. They should do so only when they need money, not otherwise."The years before have rewarded investors well. However, there should not be any question of stopping SIP till one needs the money. I believe markets will be more volatile in nature but one must continue with the discipline of investing through SIP mode," says Sunil Singhania, global head of equities at Reliance Capital.With a little over 18 million SIP accounts, the monthly flow to MFs through this mode of investment is about ~60 billion. This is sixfold increase against the sub-billion inflow after the 2008 crisis. SIP, in ...

Mutual fund folio count rises 9.5 mn in 8 months to all-time high of 65 mn

Experts said that a sharp rally in markets and low interest on deposits attracted more investors towards mutual funds

MFs cash in as public sector banks rally

Sell shares of SBI, PNB and BoB worth Rs 1,600 crore in October amid rally following recap announcement

Mutual fund equity folios at all-time high, with 7.5 mn new ones this year

Mutual fund (MF) equity folios are at an all-time high of 46.63 million, with 7.6 mn additions this year till now. The earlier peak, of 41.1 mn, was in 2009.The equity segment is dominated by individual and non-wealthy investors, termed retail in sector parlance. It now accounts for three-fourth of all folios.This year has seen one of the fastest pace of equity additions despite key stock indices trading at lifetime highs. At this pace, MFs are likely to surpass the 50-mn mark by the end of the financial year.Sundeep Sikka, chief executive officer (CEO) at Reliance Nippon MF, says, "A strong MF wave has begun. Investors are increasingly accepting these as investment vehicles. I believe systematic investment plans (SIPs) are the best way to invest. The good part is investors are realising the importance and potential of investments through this mode. India has a great potential and the fund sector has still a lot to tap."The number of SIP accounts is nearly 17 mn. Monthly investment ...

Sebi sets 5 broad categories for MF schemes; defines large cap, mid cap cos

Categories include equity, debt, hybrid, solution oriented; fund houses will have to carry out necessary changes within a maximum period of two months

Are mutual fund flows into equities at an inflexion point?

The recent deluge of net equity MF flows appears to be an outcome of a self-fulfilling virtuous cycle between inflating valuations and retail flows

Mutual fund ownership of BSE 500 companies at new high

Equity inflows, including equity component of balanced funds, rose to all-time high of Rs 18,200 cr

Most MF distributors yet to furnish GST number to Amfi

Mutual fund distributors have shown slow progress in registering their Goods and Services Tax (GST) number with the Association of Mutual Funds in India (Amfi), even as a month has passed since the new levy was implemented on July 1. According to sector sources, around 6,000 distributors have registered their GST number, while there are nearly 90,000 distributors. Amfi had asked the distributors to provide their GSTN by the end of July. And, stated that if this wasn't done, fund houses would deduct 18 per cent from their brokerage fees. Sector officials attribute the slow pace in GST registration to the fact that a majority of the distributors do not come in the threshold limit of Rs 20 lakh income a year. "They might be of the view that they need not take the GST number and provide to Amfi," said one. However, he noted, fund houses had informed distributors in June that GST was a law and every entity needed to comply with it.Sector executives preferred not to be named for this ...

Top mutual fund houses get the lion's share of equity assets

SBI MF has benefited from Employees' Provident Fund Organisation inflow

Fund managers struggle to beat key indices as market soars

India's most popular equity mutual fund (MF) schemes are increasingly coming under pressure when it comes to benchmark-beating returns for investors.With the benchmark indices soaring 20 per cent this year, few actively managed schemes have managed such a return. Those that have include HDFC Equity and HDFC Top 200, both managed by Prashant Jain, chief investment officer of HDFC MF. The margin of outperformance is, however, only 50 basis points.Fund managers have over the past year been advising investors not to keep their return expectation higher. Further, on several occasions, they stressed the fact that the phase of generating very high alpha (outperformance over the benchmark index) could be over.Mahesh Patil, co-chief investment officer (equity) at Birla Sun Life MF, says the past three years have been quite good from the schemes' outperformance point of view and repeating these might not be easy."Investors' return expectations need to be reasonable. The size of a scheme can be .

Banking MF schemes emerge as most money makers for investors

Mutual funds in this category average a return of 38% in a year, well above key benchmarks

Top funds underperform benchmarks in 2017

Returns from mutual fund equity schemes have not kept pace with their respective benchmarks in 2017.These schemes have an asset size of above Rs 10,000 crore each, with combined assets of Rs 1.7 lakh crore, nearly 30 per cent of the equity assets in the mutual fund industry.Of the 11 funds that meet the size criteria, seven did not beat their benchmarks since the beginning of 2017. Of the four funds that outperformed, one beat its benchmark by 4.5 percentage points, while the other three beat theirs by 1-2 percentage points.Seven of these funds were able to outperform their benchmarks year on year.Experts said the underperformance could be due to a burgeoning of scheme size, an unexpected rally in certain segments like metals, public sector banks, and mid- and small caps."Several mid- and small-cap equity schemes have stopped taking fresh inflows. Earlier, fund managers could easily generate higher alpha returns by bringing in stocks from the mid- and small-cap space. But that is not .

Mutual fund investments in stocks hit 5-month high of Rs 10k cr in April

Apart from equities, fund managers invested a staggering Rs 58,000 crore in debt markets in April

Mutual fund CEO salaries rise in 2016-17; loss-making funds also pay big

Salary given by ICICI Prudential Mutual Fund, HDFC MF, Reliance MF to CEOs increased in 2016-17

MFs face cost, operational pressures due to new KYC system

The domestic mutual fund sector is being saddled with new cost burden due to implementation of the new centralized know your customer (C-KYC) norms.According to industry players, moving one customer to the new C-KYC system costs up to Rs 40 for the fund house. Given the past pace of new client addition and also moving existing clients to the new system, aggregate is going through the roof, the say.The new system is aimed having a common KYC process for all financial sector intermediaries, which include mutual funds (MF), banks, insurance companies and brokers.Despite being bank or insurance customers, most of the new MF clients are not part of the C-KYC system and they end up empanelling them, say industry players. "We have to acquire new customers and can't turn the client away. There is no option left but to follow the new regulatory requirement," says a top chief executive officer (CEO) in the industry.Under the new system, once a customer completes the C-KYC process, he can ...

Hindalco, ITC and Avenue Supermarts most bought stocks by mutual funds

On the other hand, shares of Reliance Industries were the most liquidated

Equity Funds' dream run continues

Interestingly, the equity assets had dipped to less than Rs 2 lakh crore in 2013

Profit from agility of small-sized funds

There are many schemes with assets of less than Rs 1,000 crore that have a sound performance record

MFs' exposure to bank stocks hits record Rs 1.2 lakh cr in Feb end

After banks, IT was the second-most preferred sector with fund mangers

Regulator mulls instant cash-out from mutual funds

The assets in control of MFs soared to a record high of Rs 17.9 lakh crore last month