Page 40 - Mutual Funds

Mutual funds' retail asset growth pips the overall AUM, shows data

Among the top 10 fund houses, Kotak Mahindra MF and Mirae Asset MF logged the highest growth in retail assets at 70 per cent and 66 per cent, respectively

SIP inflows top Rs 15,000 crore, help offset redemption pressure

Smallcap schemes continue to be a big draw

MFs step up buying as FPI flows thin out; other DIIs remain sellers

Invest Rs 7,700 crore in July, highest in four months

Sebi looking to introduce 'MF Lite' regulations for passive funds

Capital markets regulator Sebi is engaged with the mutual fund industry to introduce 'MF Lite' regulations for passive funds, a move that will reduce the compliance burden and foster innovation. A passive fund is an investment vehicle that tracks a market index or a specific market segment. These funds include passive index funds, Exchange Traded Funds (ETFs), and Fund of Funds investing in ETFs. "Since the current MF regulatory framework was built around active fund management, Sebi is planning to introduce Mutual Fund Lite regulations for passive funds, wherein investment decisions are not discretionary, but tied to changes in the underlying benchmark index," the regulator said in its annual report for 2022-23, which was released on Monday. These new regulations are expected to significantly reduce the compliance requirements of passive funds and foster innovation in the passive fund ecosystem, it added. The regular mutual fund schemes, which raise money from the public, have to

Punjab & Sind Bank plans to foray into MF space; to finalise partner by Sep

In a bid to expand fee-based income, state-owned Punjab & Sind Bank is planning to foray into mutual fund space and hopes to find a partner by September, a senior official has said. "The bank has already floated a Request for Proposal to finalise a partner in the Fintech space, and we hope to conclude the process soon," Punjab & Sind Bank managing director Swarup Kumar Saha told PTI. He expressed hope that the bank would be able to zero in on a partner by the end of the second quarter and start operations during the current financial year. The asset management business would help the bank in increasing fee income by cross-selling products, he noted. There are 44 asset management companies operating in India. Assets Under Management (AUM) management by these companies stood at Rs 44,39,187 crore as of June 30, 2023. The AUM of the Indian MF Industry has grown from Rs 8.11 lakh crore at June-end 2013 to Rs 44.39 lakh crore as of June 30, 2023, more than a five-fold increase in a

MF houses go slow on NFOs, file draft papers for 59 schemes in Apr-Jul

With a wide array of existing mutual fund schemes, asset management companies are going slow on launching new ones in a highly competitive landscape as they filed draft documents for 59 new fund offerings (NFOs) in the first seven months of the year. In comparison, draft papers for 70 NFOs were filed in the year-ago period. In 2022, a total of 228 new schemes were floated against 140 in 2021, industry data showed. Moreover, the remaining months of 2023 are not expected to see NFO numbers anywhere close to those of 2022 or 2021, SAS Online founder and CEO Shrey Jain said. The reasons behind the decline in NFOs could be a combination of the factors as the mutual fund industry's dynamics are influenced by various internal and external factors. "AMCs may be concentrating on managing and promoting their existing schemes, rather than launching new ones. This strategy allows them to maximise the returns for existing investors and maintain stable assets under management," Jain said. Also,

Computer Age Management reports Q1 consolidated profit at Rs 75.67 cr

Computer Age Management Services Ltd has reported a consolidated profit for the April-June 2023 quarter at Rs 75.67 crore, the company said on Saturday. The company, one of the largest registrar and transfer agents in the mutual fund industry, has reported a consolidated profit at Rs 64.60 crore in the corresponding period of last year. For the year ending March 31, 2023, the consolidated profit was at Rs 284.63 crore. Total consolidated revenue during the quarter under review grew to Rs 2,709.77 crore from Rs 2,410.82 crore registered year ago. For the full year ending March 31, 2023, the consolidated total revenue was at Rs 9,986.40 crore. "The Indian mutual fund industry grew by 6.4 percent quarter-on-quarter to reach Rs 43.8 trillion in AAUM and is well-positioned for future growth. Our assets under management grew by 6.8 per cent quarter-on-quarter, ahead of the industry, to cross the Rs 30 trillion mark," company Managing Director Anuj Kumar said. "We also had a higher shar

Backstop fund facility will shield debt MF investors from fire sale

Alongside Corporate Debt Market Development Fund, risk-o-meter and PRCM introduced earlier enhance investor protection

Double-digit price erosion in the US generic market is getting arrested.

After a poor run in 2022, Pharma and healthcare funds are up 22.4 per cent year-to-date. The fundamental reason behind this upsurge is the improving outlook of the US generic market, says Mr. Chirag

As a first time earner, here are your most ideal investment options

Unless you are good at building your own stock portfolio, it is advisable to invest through mutual funds or index ETFs.

Commission payout by top 10 mutual funds up 14% in FY23, shows data

Sustained rise in flows via SIPs lifts distributor share in AUM

Hybrid schemes gain traction; attract Rs 14,000 cr in June qtr after change

After witnessing incessant outflow for three consecutive quarters, hybrid mutual fund schemes have caught investors' fancy and attracted over Rs 14,000 crore for three months ended June, following a recent change in taxation for debt funds. This was way higher than the Rs 10,084 crore inflow seen in hybrid schemes in the April-June quarter of 2022, data from the Association of Mutual Funds in India (Amfi) showed. In addition, the asset base of hybrid funds and investors' account or folio numbers of such schemes increased in the quarter under review. Hybrid funds are mutual fund schemes that typically invest in a combination of equity and debt securities and sometimes in other asset categories such as gold. These funds appeal more to investors with a moderate or low-risk profile. Hybrid funds are good investment options as they reduce the volatility associated when participating in equity markets while simultaneously providing stability in the fixed-income market. Going by the data

Can the Jio-BlackRock joint venture stir the AMC pot? What analysts say

Growth expectations of incumbent AMC players may get trimmed in the medium-to-long term, analysts said, once the Jio-BlackRock JV unveils its plans

Mutual funds offer lower costs as competition rises in passive space

Edelweiss MF brings down index fund costs to the lowest in their category

Rising markets fails to lift up new investor addition by mutual funds

MFs onboarded only 1.6 mn new unique investors in H1CY23

Advantage BAFs: Mutual fund houses line up funds amid a market surge

UTI MF launches new fund; 360 ONE and Bajaj Finserv file papers

Sponsor banks draw the highest commission from large mutual funds

Rise in distribution commissions outpaces MF industry's asset growth in FY23

Mutual funds turn upbeat on health care sector, divided on IT prospects

Automobile, capital goods among top overweights for domestic funds

Portfolio Management Services (PMS) and mutual funds are two of the most popular stock market investment methods

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Investors prefer small-cap mutual funds; net inflow Rs 11,000 cr in Q1FY24

Mutual funds focused on small-caps have emerged as the winner with a net inflow of close to Rs 11,000 crore in April-June quarter, as fund managers struggle to create alpha in the large-cap space, and the trend is expected to continue for some time. On the other hand, large-cap space, which is yet to pick up momentum, witnessed an outflow of Rs 3,360 crore during the quarter under review, data from the Association of Mutual Funds in India (Amfi) showed. Apart from the June quarter, small-cap funds logged an inflow of Rs 6,932 crore in three months that ended in March. "The strong rally witnessed in the mid and small-cap indices in the last few months, and the fact that it is becoming difficult to create alpha in the large-cap space can be the reasons for the huge inflows into smallcap funds" Himanshu Kohli, Co-founder, Client Associates, said. The huge inflows into these funds have made fund managers more cautious in their stock selection as the valuations have become stretched, he