Page 48 - Mutual Funds

Mutual funds' asset base crosses Rs 19 lakh cr mark on fresh inflows

AUM crossed Rs 10 lakh cr in May 2014, and it is expected to reach Rs 20 lakh cr this year

Mutual funds getting stronger but FIIs still dictate

Despite the growing significance of mutual funds (MFs) in domestic equities, foreign institutional investors (FIIs) continue to have more influence in deciding the market direction. An analysis of rolling three-month investment by FIIs and MFs shows the benchmark Sensex on the BSE dances more to the tunes of the former. To illustrate, FIIs pumped in Rs 44,220 crore in the three months ending March; the Sensex rallied 11 per cent. In the previous quarter ending December 2016, foreign investors had pulled out Rs 31,222 crore and the Sensex fell four per cent, despite MFs pumping in Rs 32,083 crore. Similarly, in the three months to February 2016, the Indian market dropped 12 per cent despite MFs pumping in Rs 17,818 crore; FIIs had yanked nearly Rs 20,000 crore out during this time. If one compares rolling three-month or six-month FII and MF flows since 2014 (when MFs became dominant investors), it is evident that market returns are more correlated to flows from abroad."FIIs typically ..

MFs see highest growth in assets from hinterland in FY17

India's mutual fund industry is witnessing rapid growth in hinterland territories. So much so that states which are generally known for poor financial literacy have outperformed the overall sector's growth during the year 2016-17.Sector executives attribute the growth in smaller cities to continuous rise in awareness programmes and investors' education. Further, they add given the unattractiveness of other traditional financial avenues like banks' deposits, investors are increasingly shifting towards mutual funds.Consider this : States like Bihar, Jharkhand, Chhattisgarh, Madhya Pradesh, Jammu Kashmir and Assam reported assets growth of 50-70 per cent - quite higher compared with the 37 per cent growth on all India basis. One factor which has aided for the high growth is the low base effect.Sundeep Sikka, chief executive officer (CEO) of Reliance Nippon Mutual Fund, says, "Mutual Funds are not only for wealthy customers. It's for all. There was an inherent need for such products in ...

Mutual funds' exposure to bank stocks at record Rs 1.26 lakh cr

MFs are investment vehicles made up of a pool of funds collected from a large number of investors

MFs don't lose sleep even as US compliance deadline looms

Non-compliance with Fatca will not affect existing investments and incremental inflows

Mutual funds prune exposure to tech stocks

Sell shares worth Rs 1,550 crore in firms during March

MFs buy hot stocks like Snap ahead of IPOs

Some mutual funds already have stakes as companies go public

Mutual fund assets soar 42% to Rs 17.5 trillion in FY17

Investors poured in an additional Rs 3.4 trillion across categories during the year under review

Bubble building up in debt MF: Ambit

Bond and liquid funds received more inflows in FY17 than in FY15 and FY16 combined

Be a buy-and-hold investor in mutual funds

Sebi's Investor Survey highlights need to invest according to risk appetite and investment horizon

Fund houses that rode the boom

Edelweiss MF grew its asset base the most in percentage terms

Campaign logic: Icebreaker to allay mutual funds fears

A campaign by AMFI focuses on building awareness about mutual funds and the basic rules of investing

Mid- and small-cap funds steal the show

Fund managers believe the risk-reward equation will now favour large-caps

Mutual funds add 67 lakh folios on higher retail participation

Huge inflows in equity schemes have also contributed to the upside

Majority of active funds lag benchmark returns in past one year

Passive investing in mutual fund schemes is not popular in India. Investors have preferred schemes managed by fund managers because of their ability to beat returns of the underlying benchmarks and generate the so-called "alpha".However, the latest SPIVA India (S&P Indices Versus Active Funds) scorecard reveals that over a one-year period ended December 2016, 66 per cent of large-cap equity funds, 64 per cent of ELSS funds and 71 per cent of mid & small-cap equity funds underperformed their respective benchmark indices. The underperformance reduced over longer timeframes. In the five-year period, for instance, the 54 per cent, 25 per cent and 42 per cent of large cap, ELSS and mid & small-cap schemes underperformed their respective benchmark indices. In the 10-year period, the comparable figures are somewhat higher at 55 per cent, 50 per cent and 46 per cent, respectively. This shows that while the majority of mid & small-cap schemes were able to beat their benchmarks,

Mutual funds see Rs 30,000 cr inflow in Feb; Rs 3.98 lakh cr in 11 months

The latest inflows have been mainly driven by contribution from liquid, income and equity funds

Equity MF Rs 10k-cr club swells to ten schemes

The sustained money flowing into the mutual fund (MF) sector in the past two years by way of systematic investment plans (SIPs) has propelled the assets of several equity schemes into the Rs 10,000-crore club. While just three schemes were part of this club two years ago, as many as 10 schemes today manage assets of over Rs 10,000 crore. To put this in better perspective, even at the peak of the bull run in late 2007 there were four schemes with assets of over Rs 5,000 crore, with the largest equity scheme handling just about Rs 6,400 crore. "Investors are choosing the MF route to enter the markets, and most of this money has flown into the large-sized schemes, which are perceived as safe bets by investors," said Manoj Nagpal, CEO, Outlook Asia Capital. Over the past 30 months, the SIP trend has surged and there are now over 10 million of these accounts. The average investment size of an SIP is about Rs 3,500.Some of the schemes have grown so large there is talk among market ...

Mutual fund assets racing towards Rs 20 lakh cr

Robust inflows from domestic investors through systematic investment plans are a big boon

The best performing MFs: Here are the mutual funds that have made you rich

DSP Micro has been one of the best-performing schemes over a period of two, three, and five years

Chart: Hits and misses for equity MFs

Power Grid was the only major stock where they timed their selling well in January