Page 18 - Mutual Funds

AT-1 bonds' valuation by mutual funds to be based on yield-to-call: Sebi

Capital markets regulator Sebi on Monday said that mutual funds will value Additional Tier 1 or AT-1 bonds based on yield to call (YTC) basis. Yield to call is the expected return an investor gets if they buy a bond and hold it until the issuer repurchases it on the call date, before maturity. This came after the National Financial Reporting Authority (NFRA) recommended that AT-1 bonds should be valued based on yield to call to align with market practices and Ind AS 113 principles. This recommendation applies only to the valuation of AT-1 bonds under Ind AS 113, not to other purposes. "In order to align the valuation methodology with the recommendation of NFRA, it has been decided that the valuation of AT-1 bonds by mutual funds shall be based on Yield to Call," Sebi said in a circular. However, for all other purposes, the deemed maturity of perpetual bonds will still follow the guidelines in the Master Circular. AT1 bonds are issued by banks with no maturity date, but they includ

Sebi amends mutual fund rules to curb front-running, insider trading

Capital markets regulator Sebi has amended mutual fund norms requiring Asset Management Companies (AMCs) to put in place an institutional mechanism to identify and deter front-running and insider trading in securities. Additionally, the management of AMCs will be responsible for ensuring the effectiveness of the institutional mechanism. Also, the regulator has directed AMCs to have a whistle-blower mechanism. This came in the wake of Sebi's passing two orders regarding front-running cases involving Axis AMC and Life Insurance Corporation of India (LIC). In a gazette notification dated August 1, Sebi said, "Asset management companies shall put in place an institutional mechanism, as may be specified by the Board, for the identification and deterrence of potential market abuse including front-running and fraudulent transactions in securities". Front-running refers to an illegal practice, where an entity trades based on advanced information from a stock broker or analyst before the .

Moderate earnings growth this year, but strong outlook: Bhandwaldar

Bhandwaldar discusses the potential end-of-earnings downgrades for the information technology (IT) sector, noting that upgrades will depend on the US outlook

How to strike a balance between investment expectation and financial goal

Investors must manage their biases and decide what is the right size for each of their positions in a portfolio

Multi-asset allocation funds steal a march on balanced advantage funds

Since April 2023, rake in Rs 42,980 crore versus Rs 14,033 crore garnered by BAFs

SBI Mutual Fund launches the Innovative Opportunities Fund: Check details

The fund will invest up to 35 per cent of the corpus in global stocks as and when the foreign investment limit is raised

Investment in equity MFs surge 5-fold to Rs 94,151 cr in June quarter

Investment in equity mutual funds surged over five-fold to Rs 94,151 crore in the June 2024 quarter against Rs 18,358 crore a year ago, driven by a strong economic environment, supportive government fiscal policies, investors confidence and robust stock return. This has also pushed the industry's assets under management (AUM) by 59 per cent to Rs 27.68 lakh crore in June from Rs 17.43 lakh crore a year ago, data from the Association of Mutual Funds in India (AMFI) showed. The robust gain in the asset base was also replicated in the growth of investors in equity mutual funds, with the number of folios closing at 13.3 crore, adding an investor base of over 3 crore. The significant gain in equity folios indicates broader participation across investor segments, driven by improved financial literacy and accessible investment platforms, Trivesh D, COO of stock trading platform Tradejini, told PTI. According to the AMFI data, equity-oriented mutual fund schemes invested Rs 94,151 crore in

Index fund folios up 12-fold since March 2020: Zerodha Fund House

Data from the Association of Mutual Funds in India (Amfi) pegs the index fund retail accounts or folios at 7.2 million in March 2024

Bajaj Finserv AMC launches fund 'focused on' 25-30 largecap stocks

Bajaj Finserv Large Cap Fund will have a concentrated portfolio with a 'high conviction' stock selection approach

Indian banks' short-term debt increases to 12-year high on loan demand

Depositors in India have been saving less in banks as soaring equity markets and avenues such as mutual funds, insurance funds and pension funds lure them

MF AUM increases to 29% of bank deposits on equity rally, inflows

In the financial years ending March 2023 and March 2022, MFs had cornered over 6 per cent of household savings. In FY21, this figure had been a mere 1.3 per cent, according to RBI data

MFDs cash in big: Commissions increase over 20% on market liftoff

SBI hits the mother lode: Rs 1,000 crore payoff from its mutual fund

Budget 2024 wishlist: Amfi's hopes for mutual fund reforms and tax benefits

Budget 2024: One of Amfi's main requests is to align the tax benefits for pension-focused mutual fund schemes with those of NPS

Motilal Oswal MF launches a new fund focusing on current capex cycle

The fund house said India has a huge manufacturing opportunity on the export front with sectors like chemicals, pharma, industrial machi­n­ery, and automotive likely to emerge as key drivers

New asset class to foster innovation, raise competition, say experts

Industry experts believe it may eat into some of the existing assets of MFs, PMS

Motilal Oswal Mutual Fund divests stake in Zomato for Rs 646 crore

Motilal Oswal Mutual Fund on Tuesday divested its stake in online food delivery aggregator Zomato for Rs 646 crore through an open market transaction. According to the block deal data available on the National Stock Exchange (NSE), Motilal Oswal Mutual Fund (MF) sold more than 2.84 crore shares or 0.3 per cent stake in Gurugram-based Zomato. The shares were disposed of at an average price of Rs 226.85 apiece, taking the transaction value to Rs 645.84 crore. Axis Mutual Fund, BNP Paribas Arbitrage, Citigroup Global Markets Mauritius, Goldman Sachs, Matthews Asia, Morgan Stanley, Hong Kong-based Optimas Capital Management and investment management firm Polar Capital were among the buyers of Zomato's shares. Shares of Zomato plunged 4.71 per cent to close at Rs 218.35 apiece on the NSE.

Six firms in queue for MF licence; AlphaGrep Securities latest applicant

AlphaGrep Securities joins Jio and two others in line for in-principle approval

Mutual funds equity AUM surges past Rs 30 trillion in June, shows data

The report noted that the 8.7 per cent month-on-month rise in AUM was fueled by a rise in market indices and a jump in fresh inflows

Canara Robeco MF launches Balanced Advantage Fund: Should you invest?

The fund aims to generate long-term capital appreciation by dynamically investing in equity and equity-related instruments and debt and money market instruments

A plea to provide more mutual fund data

While these MF products are not systemically important yet, data about them should be made public for academics and investors to do research and challenge incorrect conclusions