Page 86 - Mutual Funds

New fund offers likely to see lower flows due to weak investor sentiment

In March, collections had declined nearly 50%

NFOs likely to see lower flows over weak investor sentiment, lockdown

In March, collections had declined close to 50% from previous month

Mutual funds likely to get Sebi lifeline to tide over liquidity woes

Market regulator likely to relax 20% cap on MF borrowing

Foxed by market volatility, MFs hold cash to invest when the market dips

Experts say taking large cash calls can also put equity schemes at risk of underperformance, if markets bounce back instead of seeing further deep corrections

RBI, Sebi split over default recognition; MFs, rating agencies seek clarity

In the absence of clarity, NBFCs are staring at huge repayment obligations at a time when their liquidity cover is declining

Coronavirus impact: Many debt schemes turn cash negative in March

Net liabilities rise 3-17%, funds forced to borrow to meet redemption pressure

Mutual Funds play it safe on equity bets amid market volatility

According to the data collated by Edelweiss, Reliance Industries was on top of mutual funds' buying list

Decline in AUM to make equity MFs costlier, dent investor returns

An increase in TER could further dent investor returns, which have fallen significantly over the last month

Index funds saw fourfold jump in flows in March amid market volatility

Last month, Index funds received inflows to the tune of Rs 2,076 crore, as against Rs 511 crore the previous month

MFs have full flexibility on PTCs, no further relaxations needed: SEBI

Recently, the Association of Mutual Funds in India (AMFI), had written to Sebi regarding relaxation relating to valuation of PTCs if underlying loans are given a moratorium.

Sebi to provide clarity to MFs over treatment of corporate defaults

The move comes in the wake of rising redemption pressure, lack of activity in the bond market and fears of non-payment of dues by corporate houses

Unlisted NCDs may be treated as term loans, carry RBI moratorium benefit

Sebi is likely to allow corporate houses to treat unlisted non-convertible debentures as 'term loans'.

Debt schemes see worst ever outflows in FY20; liquid funds suffer most

Net outflows were seen across debt categories, with liquid schemes accounting for Rs 1.1 trillion of outflows

Strategy for meeting goals

Moving money from equity to debt in the last stages of any financial goal ensures that the corpus does not erode suddenly due to a fall in the stock market

Tipping point: Despite good performance, don't bet on long-duration funds

Government borrowings could rise, causing a spike in yields of long-term bonds

Pausing SIP set to become simpler; more fund houses to offer option

Many fund houses don't yet offer the pause facility but are scrambling to put one in place for investors

Mutual funds investment in REITs, InvITs climbs 58% to Rs 980 cr in January

In comparison, an investment of mere Rs 7 crore was seen in REITs in January 2019 and Rs 611 crore in InvITs

Covid-19, FII sell-off hit liquid funds hard; RBI's LTRO may calm investors

The total outflow from mutual funds went up to Rs 2.35 trillion till March 29; bond yield spike led to redemption pressure

Covid-19 lockdown: MF equity flows could see a 10-15% dip in March

Participants say flows have shown resilience despite shutting of offline channels

Lack of liquidity in the debt markets hurts MF investors in debt categories

Experts say there has been heavy selling of shorter-tenure bonds in the markets, and given the lockdown, their buying capacity has shrunk significantly