Page 45 - Mutual Funds

MF cos to spend over Rs 3.5 bn in ad blitz to educate investors: 5 myths

Mutual fund industry garnered about Rs 58.93 bn in November 2017 through SIPs against Rs 38.84 bn collected in November 2016

Time to churn for cost conscious after introduction of total return index

The Securities and Exchange Board of India (Sebi) has made it compulsory for all mutual funds to benchmark their schemes against the total return index (TRI) through a circular dated January 4. Until now, a few fund houses such as DSP BlackRock, Edelweiss and Quantum were voluntarily benchmarking their returns against the TRI. But now all fund houses will have to adopt this global best practice. Price return indices (PRIs), which fund houses have been using so far, capture only the capital gains and losses of the index constituents. But funds also receive dividend payments from the securities they hold in their portfolios. This makes it easier for fund managers to beat the PRI. For instance, if the dividend yield of a portfolio is 1.5 per cent, its fund manager gets a 1.5 percentage point head start. Now, with the dividend income getting reflected in the TRI, fund managers will have a tougher time beating their benchmarks. Fund houses have to comply with this directive from February ..

Readers' Corner: Mutual funds

Mutual funds are an excellent way to participate in the growth of the country and reap benefits

Mutual funds wary of rising inflows

The need for caution is deepening in India's fast burgeoning mutual fund sector which manages nearly Rs 23 trillion of assets - more than three times of what they managed less than five years ago. More than expected inflows on a continuous basis with high expectations of returns from investors is somewhat unsettling sector executives."When inflows become so large, management becomes an issue," quips a top chief executive. It's good as far as sector's growth is concerned, he adds, but risks attached become equally important if we want to create lot more 'happy set of investors'.Business Standard spoke to nearly half a dozen of senior executives in the sector, and all agreed that uncertain times may bring undue risks. "And before they hit us, it's better to put in safeguards to avoid crisis, if any. No doubt, I am worried. And worry comes from the fact that what all is driving these flows and with what expectations?," says chief executive of mid-sized fund house.This paper has learned ..

Mutual funds sahi hain, but...

Small-town investors are being mis-sold MFs, based on past returns and without being told about their potential risks

2017: A record breaking year for the domestic MF Industry

Acceptance of MFs as investment vehicle rises significantly

Sebi asks MFs to downplay 'Sahi Hai' campaign

Market regulator concerned there could be mis-selling

Mutual funds log Rs 51,000 cr inflow in October: Amfi

With the latest inflow, total infusion in MF schemes reached to over Rs 2.5 lakh cr from April-Oct of the current fiscal

MF investments in equities cross Rs 1 lakh cr in 2017

Domestic mutual funds (MFs) continue to pour money into equity markets, with their net flow crossing Rs 1-lakh crore mark during calendar year 2017 (CY17).Till November 10, MFs pumped in a net Rs 102,810 crore in equities - up an over three-fold as compared to the previous year (CY16) when they had put Rs 29,374 crore in equities during the same period, Securities and Exchange Board of India (Sebi) data show.On the other hand, foreign portfolio investors (FPIs) have invested Rs 48,190 crore in the equity segment so far in CY17, NSDL data show. Their investment stood at around Rs 43,280 crore in the same period last year.Given the abundant liquidity, S&P BSE Sensex and the Nifty 50 have rallied 23.7% and 24.4%, respectively thus far in CY17 and breached 33,866 and 10,490 levels in first week of November.Experts attribute this surge in MF flows into equities to growing participation from retail investors, especially from small towns, and several measures taken to educate investors ..

Mutual funds still shy of taking on companies

Fund houses improve participation in shareholder resolutions, but mostly vote for firms' decisions

Strong inflows into MFs continue

The mutual fund (MF) dream run continued in October with stock markets hitting new record highs. Last month, equity schemes saw net inflows of Rs 16,000 crore amid a six per cent jump in the benchmark Sensex index. Although the inflows in October were less than the preceding two months, they were much higher than the average monthly inflow of Rs 11,000 crore for the first nine months of the calendar year. In August and September, equity MFs had seen an average Rs 20,000 crore of inflows amid weakness in the market. Last month, however, the flows remained strong despite the markets seeing their biggest monthly jump since March 2016Shares of state-owned banks and infrastructure companies saw huge spurt in October after the government announced a stimulus package in the form of Rs 2.11 lakh-crore bank recapitalization and Rs 7 lakh-crore worth of investment in the roads sector. On a year to date basis, the net inflows into equity MFs has climbed to Rs 1.16 lakh crore. The huge inflows ...

Over 6.6 mn new investors added in mutual funds in April-Sept period

Participation in MFs from retail investors, especially from small towns, has been growing

Account additions in equity mutual funds zoom

Equity mutual funds (MFs) have added 27,000 new accounts a day in the first six months of 2017-18. This is the fastest pace of account addition in the equity segment since 2008.The April-September period witnessed opening of five million new equity accounts, taking the overall tally to 45.8 million. The period saw nearly three million additions of systematic investment plan (SIP) accounts. Akin to recurring bank deposits, SIPs are a tool used to invest a fixed amount every month or a quarter in a mutual fund scheme. "It's a clear reflection of increasing penetration and popularity of mutual funds. I think we have reached the inflection point where mutual funds have become an investment vehicle of choice for individual investors. Having said that, this is just the beginning and we will see exponential growth in the next few years," said G Pradeepkumar, chief executive officer (CEO) of Union Mutual Fund.Equity schemes have been witnessing huge retail inflows in recent months. Since ...

Mutual funds get Rs 20,000-cr inflows for second straight month

Total assets under management (AUM) for September stood at Rs 20.4 lakh crore compared with Rs 20.6 lakh crore at the end of August

Mutual funds lap up perpetual bonds for higher yields

Exposure of debt schemes to these bonds jumps 8-fold in past 1 year

Tipping Point: Why are cash positions of equity mutual funds rising?

Fund managers are becoming wary of investing at high valuations

What mutual funds bought and sold in August

The top 10 stocks saw investment of Rs 10,575 crore from MFs in August

Mutual funds log Rs 62,000-cr inflows in August

Equity and equity linked schemes attracted Rs 20,362 crore

Mutual funds' flow into equities at two-year high

Domestic mutual funds (MFs) continue to pour money into equity markets even as the frontline benchmark indices are trading near all-time high, with their net flow hitting a record high during the current calendar year 2017 (CY17).Till September 7 2017, MFs have pumped in a net Rs 73,428 crore in equities, surpassing their previous high recorded two years ago. During the entire calendar year 2015 (CY15), they had made a net investment of Rs 72,199 crore in equities. In CY15, MFs reported net inflow of Rs 48,170 crore.Their net investment thus far in CY17, is 5.8 times higher as compared to CY16, when they put Rs 12,538 crore in equities, according to data with the Securities and Exchange Board of India (Sebi) show.The benchmark S&P BSE Sensex and Nifty50 have gained by about 20% and 23%, respectively in the first nine months of the current calendar year.By comparison, foreign portfolio investors (FPIs) have invested Rs 42,652 crore thus far in CY17 in the Indian equity segment, ...

Mutual funds diversify stocks amid inflows

Besides new listings, equity mutual funds have added 36 new stocks to their portfolios