Page 47 - Mutual Funds

Mutual Funds aim at five-fold increase in assets by 2025

Recent growth encouraging, but challenges remain

Sebi asks mutual funds to hone due diligence, playing on debt funds

Mutual funds have to work on due diligence practices before picking up corporate bonds and should not just rely only on credit ratings given the rising defaults, Sebi chairman Ajay Tyagi said today. "There are instances of defaults on debt portfolio so naturally mutual funds need to strengthen their due diligence and evaluation mechanisms and not only depend on credit rating agencies," Tyagi told an Amfi summit here. The Sebi chief also warned MFs against playing too much on debt funds, given the poor shape of many corporates, also the bad loans in the banking system and the possibility of some of such funds finding their way into the fund houses. "Care should be taken that NPAs do not get shifted to MF portfolio by way of debt transfer," Tyagi warned. The warning from the markets watchdog comes amidst many companies including Amtek Auto, Jindal Steel & Power, Ballarpur Industries, having defaulted on their debt coupon payments in recent past and given the pathetic shape of ...

Mutual funds ahead of FPIs in stock investment during April-May period

In comparison, FPIs bought equities worth Rs 10,000 crore during the same period

Equity mutual funds see big churn

While equity mutual funds (MFs) have seen robust net inflow of nearly ~40,000 crore in the first five months of 2017, a closer look at the data shows the absolute redemption figure is also quite high, at ~72,708 crore. In other words, investors have taken out nearly ~14,500 crore from equity schemes every month.Sector players say this is partly due to savvy investors taking money off the table as stock prices climb to record highs. They say a lot of money is being churned, with investors pulling out from one scheme to invest in some other more lucrative one.The total sale of equity MF units this year has been ~1.12 lakh crore (gross sale minus redemption is net inflow)."There would be investors who are booking profits and at the same time one can't deny the fact about realignment of portfolios - shifting from one fund to other. Investors who have invested for more than three years are sitting on reasonable profits; so, it's normal for them to take some money off the table," says ...

Investors redeem equity MF units worth Rs 72,000 cr during Jan-May period

A section of equity mutual fund investors - mainly the smart investors - have either redeemed their units thus far this year or there is a lot of re-alignment of funds in their portfolios resulting into a churning of money from one set of funds to other funds.In the last five months (January- May), equity schemes have seen a robust inflows of Rs 40,000 crore on a net basis. This essentially means that quantum of money coming in is outpacing the amount of money going out. However, if one looks at the overall gross sales which stands at a whopping over Rs 1,12,000 crore during this period, it suggests that redemptions have been on a much higher side.Statistics from the Association of Mutual Funds in India (Amfi) show that in a span of the first 5 months of the calendar year 2017, investors have redeemed equity units worth Rs 72,708 crore. This translates into an average redemption of over Rs 14,500 crore each month at a time when Indian stock indices are hovering at their historic ...

MF exposure to bank stocks at Rs 1.44 lakh cr on cheaper valuations

In comparison, the figure was Rs 90,014 crore at the end of May 2016

Cash levels at equity mutual funds continue to remain high

Equity schemes have seen inflows of more than Rs 10,000 cr each in April and May

Mutual funds rope in PwC to assess GST impact

Industry fears additional tax outgo of Rs 300-500 crore due to higher service tax

What fund managers bought and sold in May

Mutual funds made substantial churn to stock holdings amid strong momentum in the stock markets

Mutual funds' equity investor base at record high

The number of investors in the country's Rs 19-lakh crore mutual fund (MF) sector has climbed to an all-time high. At the end of last month, the number of equity MF folios was 42.17 million; total folio count was 57.19 mn. Both are a record. It took the sector nearly eight years to surpass the previous high of 41.13 mn equity folios, touched in March 2009. The previous best count for total folios was 48.17 mn in March 2010.After the global financial crisis, the equity investor base had shrunk by nearly 30 per cent, to 29.18 mn. In the past three years, equity folios have seen annual growth of 45 per cent, with the rally in domestic stocks and consistent inflow into equity schemes.Interestingly, MF equity folios are now 50 per cent more than the total of dematerialised accounts, of 28 mn. In other words, many more investors are now accessing the capital markets through the MF route than by direct equity investing.In the past three years, equity assets under management (AUM) have ...

Tipping Point: What are credit ratings of debt mutual funds?

Most investors only look at the past returns of funds

GRAPHIC: Healthy additions in Mutual Fund folios

The increase in folios wasn't equally distributed

MFs' pace of buying slows as shares surge

Fund managers collectively invested Rs 8,959 crore in May, says Sebi

Top MFs up stake in group companies

India's top mutual fund houses' exposure to shares of their group companies has gone up over the last one year. The Rs 19-lakh crore mutual fund industry is dominated by ICICI Prudential Mutual fund, HDFC MF, SBI MF, Birla Sun Life MF and Reliance Nippon MF. All these investment houses are backed by strong corporates and banks.India's largest fund house ICICI Prudential Mutual Fund's equity schemes exposure to its parent company ICICI Bank has gone up 107 basis points in one year to 3.03 per cent in March 2017. Similarly, collectively, schemes of Reliance Nippon Mutual Fund has increased stake in Reliance Communications from 0.94 per cent a year back to 1.12 per cent at the end of FY17.SBI Mutual Fund's exposure to State Bank of India is up at 1.15 per cent against 0.52 per cent while Birla Sun Life Mutual Fund's holding in group companies like Grasim Industries, Aditya Birla Nuvo, Idea Cellular and Hindalco Industries.Fund managers and chief executive officers (CEOs), Business ...

Retail investors pouring Rs 4,000 crore a month in mutual funds

FIIs have invested roughly Rs 50,000 crore over the past five months

Readers' Corner: Mutual Funds

SIP can be the best method to invest as it aids in rupee cost averaging

Schemes in Rs 10,000-crore AUM club double

The gains in the markets along with robust inflows have seen several schemes gain size

Mutual funds: Be careful of benchmark changes

It isn't necessary to shift unless you have a duplicate fund in your portfolio

MFs' asset base from smaller cities up 41% at Rs 3 lakh cr in FY17

Currently, B15 accounts for 17 per cent of the total assets of the industry.

Sebi allows investors to buy mutual fund schemes via digital wallets

However, e-wallet issuers would not be permitted to offer any incentive such as cash back