Page 42 - Mutual Funds

Bank vs IT stocks: Domestic fund managers face a 'Hobson's choice'

Backing the right pack can help in alpha generation, as the two often move contrarily

Mutual funds invest over Rs 2,400 cr in equities in May due to GDP growth

After withdrawing capital from equities in April, mutual funds put in over Rs 2,400 crore in stocks last month, primarily due to robust GDP growth, controlled inflation levels, and balanced liquidity in the economy. Going ahead, stronger inflows from the mutual fund space in equities are expected on positive macro numbers and the current fair value of Nifty, Feroze Azeez, Deputy CEO of Anand Rathi Wealth, said. "Stable GDP growth, low inflation, investor-friendly policies, and global market sentiments towards emerging economies play a significant role in attracting investments from both mutual funds and foreign portfolio investors (FPIs)," Akhil Chaturvedi, Chief Business Officer at Motilal Oswal AMC, said. According to the data available from the Securities and Exchange Board of India (Sebi), mutual funds infused a net sum of Rs 2,446 crore in equities as compared to a net withdrawal of Rs 4,533 crore in April. However, there is a disparity in May's investments between mutual fund

Tax changes slow new MF scheme launches; demand for debt funds takes a hit

The debt-plus-arbitrage strategy will keep volatility lower as in the case of debt schemes, while also ensuring lower tax outgo for investors

Sebi allows MFs to invest in repo transactions on commercial papers

In a bid to boost growth of the corporate bond market, regulator Sebi on Thursday allowed mutual funds to invest in repo transactions in securities such as Commercial Papers and Certificate of Deposits. In addition, the capital markets regulator said that mutual funds can participate in repo transactions only in "AA" and above rated corporate debt securities, according to a circular. In repo transactions, also known as a repo or sale repurchase agreement, securities are sold with the seller agreeing to buy them back at a later date. The instrument is used for raising short-term capital. For the purpose of consideration of credit rating of exposure on repo transactions for various purposes, including for potential risk class matrix, liquidity ratios and risk-o-meter, Sebi said the same will be as that of the underlying securities on a look-through basis. With regards to transactions where settlement is guaranteed by a clearing corporation, the exposure will not be considered for the

There is caution among retail investors, says Sharekhan's Gaurav Dua

The one-way rally in the broader market lasts for 17/18 months (on average) and is followed by a corrective phase of 18-24 months

ICICI Prudential Bluechip Fund: Consistent in outperformance and holdings

The fund's month-end assets under management increased to Rs 35,876 crore in April 2023, from Rs 21,765 crore in May 2020

UTI, SBI MFs lead small town footprint due to strong branch presence

Table-topper UTI MF prides itself on the distribution network it has created in B-30 locations

Mutual funds eye micro stars as broader equity market gathers pace

Outperformance lures fund houses to explore micro-cap schemes; challenging space, say experts

Amfi to form ethics panel to curb misconduct in asset management companies

The proposed ethics committee of Amfi, a nodal association of mutual funds in the country, is envisioned to be able to take action on a self-regulatory basis against individuals

Yield-to-maturity in debt mutual funds continue to trend downwards

Wrong end of the curve: YTM of most scheme categories 15-65 bps lower at the end of April

High expense ratio erodes mutual funds' net return, so monitor cost

If your distributor suggests moving from a low- to a high-cost fund, question the rationale of the move

Sebi to issue MF light regulations for passive funds to ease compliance

Markets regulator Sebi will come out with a mutual fund light regulations for passive funds as part of efforts to reduce the compliance burden, foster growth as well as lower costs to investors, a senior official said on Friday. Passive funds 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. The regulator is looking to reduce compliance requirements for passive funds that are tied to changes in the underlying index and operate on a non-discretionary basis. To accommodate passive investments, such as index funds and ETFs, the regulator is introducing mutual fund light regulations, Sebi Whole Time Member Ananta Barua said. "These regulations will provide greater flexibility for index funds and ETFs, enabling them to offer transparency, diversification, and lower costs to investors. "By easing the compliance burden, Sebi aims to foster the growth

Safe-bet BAFs take the back seat as investors turn to riskier funds

Outflow not huge but the traction seen in the later part of 2021 is waning, shows data

Mutual funds buy the dip in IT stocks; invest Rs 9,500 crore in 2023

Stocks attractive as downside risk is limited and most negatives are priced in: Experts

In MFs' trading expense revamp, AMCs, brokerages see Rs 3.5k-cr blow

Inclusion of brokerage or trading costs in the TER will put AMCs in a catch-22 situation as the greater the churn in portfolios, the lower the profit margins will be

Sebi plan to prune MF costs: New expense slabs, no additional charges

Proposes to bring expenses like brokerage, transaction, and GST within the total expense ratio

TMS Ep434: Go First vs lessors, L&T, mutual funds, private credit funds

How will Go First vs lessors affect Indian aviation? Where is L&T headed after a change of guard? Which equity mutual funds are experts betting on? What are private credit funds? Answers here

Large-cap MFs, Index Funds to attract flows as markets pick pace: Analysts

Gross inflows into active equity mutual fund (MF) schemes dipped 34 per cent month-on-month (MoM) to Rs 25,400 crore in April

Debt MFs attracts Rs 1.06 trn in FY23, liquid funds account 60% inflow

After massive outflow in March, debt-oriented mutual funds witnessed a sharp turnaround in April as they attracted Rs 1.06 lakh crore with liquid schemes accounting for 60 per cent of the inflow. Barring credit risk and banking and PSU fund categories, all the other segments witnessed net inflows and expectedly, categories having shorter maturity profiles were the biggest beneficiaries, the data with the Association of Mutual Funds in India (Amfi) showed. Going ahead, debt mutual funds are likely to witness a decline in inflows since the tax benefits from indexation are not available from April 1 onwards, V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said. According to the data, debt mutual funds witnessed an inflow of Rs 1.06 lakh crore in April as compared to a net outflow of Rs 56,884 crore in the preceding month. "While March's outflow was a natural and expected year-end phenomenon. It is difficult to ascertain the reason behind this sudden turn in

MF's NFO collection drops 42% to Rs 62,342 cr in FY23; AMCs float 12 NFOs

Hit by markets regulator Sebi's ban on the launch of new fund offerings, mutual funds' collection through fresh schemes remained subdued at Rs 62,342 crore in 2022-23, which was 42 per cent lower than in the preceding fiscal. However, a higher number of NFOs were launched in 2022-23 (FY23) compared to the preceding year. A total of 253 new schemes were floated in FY23, which was way higher than 176 new fund offers (NFOs) launched in 2021-22, according to the data compiled by Morningstar India. Moreover, in the current fiscal so far, AMCs have floated 12 NFOs in different categories, the industry data stated. In the past fiscal year, fund managers focused on passive funds and fixed income categories like fixed maturity plans. As per the data, a total of 182 open-end funds and 71 closed-end funds were launched in the financial year 2022-23, and cumulatively, these funds garnered Rs 62,342 crore. In comparison, 176 NFOs were floated in 2021-22 and cumulatively, these funds were able