Page 2 - Debt Mfs

Finance Bill 2023: Debt MF tax changes to hit fund houses; AMC stocks fall

Industry expects inflows shrinking in the medium to long-horizon debt funds

Arbitrage funds back in favour as market volatility boosts returns

Interest in low-risk equity products of mutual fund schemes see interest after extended period of outflows

Outflows in debt MFs continue, Rs 13,815-crore withdrawn in February

Mutual funds focussed on investing in fixed-income securities witnessed an outflow of Rs 13,815 crore in February, making it the third month of withdrawals in a row despite expectations that the rate hike cycle was nearing its end. In comparison, such funds saw an outflow of Rs 10,316 crore in January and Rs 21,947 crore in December. Prior to that, debt funds saw a net infusion of Rs 3,668 crore in November 2022, data from the Association of Mutual Funds in India (Amfi) showed. Of the 16 fixed-income or debt fund categories, nine witnessed net outflows during the month under review and the remaining six saw inflow. The heavy withdrawal was seen from liquid funds. Overall, debt funds continued to witness outflows at Rs 13,815 crore during the period under review. "With the central bank's focus on moderating inflation, the monetary policy has been tailored to ensure a disinflation process. Despite expectations around the February rate hike of 25 basis points likely being amongst the

Union Budget 2023-24: Advantage MFs after tax blow on MLDs, insurance

Investors may divert flows towards debt funds, say experts

You can't pick next yr's winner asset class, so build diversified portfolio

Give higher weight in your core portfolio to asset classes that offer greater stability

Debt MF schemes doing well in stress tests: RBI financial stability report

The central bank says stress tests show risks faced by debt schemes is within limits

Investors pull out big money from debt funds despite attractive yields

Fund managers and MF distributors expect net inflows to turn positive after completion of rate hike cycle

Debt MFs outflow continues; investors withdraw Rs 70,000-cr in Jun qtr

Investors continued to withdraw from mutual funds focused on investing in fixed-income securities for third consecutive quarter and pulled out over Rs 70,000 crore in April-June due to high inflation and an increasing rate cycle. "In the next (September) quarter, it is safe to assume that monetary conditions will be tighter in terms of lower amount system liquidity and higher regulatory rates, both of which should see further reduction in mutual fund debt corpuses," Sandeep Bagla, CEO Trust Mutual Fund, said. Interest rate will be the major factor to dictate flow in debt mutual funds in coming quarters. Once rates start stabilizing, inflows can be expected, Ankit Yadav, Wealth Manager (USA) & Director of Market Maestroo, said. The latest outflow has pulled down the asset managed by fund managers for debt fixed-income funds by 5 per cent to Rs 12.35 lakh crore at June-end from close to Rs 13 lakh crore at the end of March, data available with the Association of Mutual Funds in ...

Share of debt mutual funds in industry AUM wilts markedly, shows data

The share of debt MFs has been consistently sliding after the pandemic, with interest rates headed south and stock markets ascending

Ladder your fixed deposits to avoid the risk of reinvestment: Experts

Debt fund investors should keep the bulk of their investments in shorter-duration funds, 10-20% in longer-duration ones

Debt funds' exposure to banks' certificates of deposit doubles, shows data

Several funds reduce average maturity for schemes in anticipation of interest rates rising.

Debt MFs see Rs 1.2 trn outflow in Q4 as withdrawals continue: Report

Mutual funds focused on investing in fixed-income securities saw an outflow of Rs 1.2 crore in the March 2022 quarter on massive withdrawal from segments, said a report by Morningstar India

Planning a holiday? Tips on saving up for travel in a post-Covid world

Get a fix on your budget first; Then check the investment avenues that will help you cope with inflation and currency fluctuations between now and the day you eventually fly out

Ahead of Budget, Amfi calls for tax parity between debt securities, MFs

At present, units of debt-oriented MFs have a minimum holding period of 36 months to qualify as long-term capital assets

Debt MFs see Rs 84,202-cr outflow in Q4 on redemption from liquid funds

Debt mutual funds witnessed an outflow of Rs 84,202 crore in three months ended March 2021, with liquid schemes contributing 56 per cent of the withdrawal, according to a Morningstar report. This was the only quarter in 2020-21 that saw outflow in the fixed-income or debt category. The outflow comes following an inflow of Rs 1.69 lakh crore in December quarter, Rs 35,522 crore in September quarter and Rs 1.09 lakh crore in June quarter. According to the report, fixed-income category had faced a challenging atmosphere since the downgrade to IL&FS back in 2018. A spate of downgrades to other entities following the IL&FS crisis left some of the fixed-income funds in a serious liquidity crunch as redemptions in certain categories explode, it added. "Given the uncertainty in the economy caused by COVID-19, investors are again moving toward risk-averse assets in the fixed-income segment during volatile times, as they tend to provide better protection to their capital relative to ...

Debt MFs confident of surfing Covid-19 2nd wave despite corporate defaults

Industry players say shift to high-quality paper will help them tide the turmoil

Sebi frowns at MF industry's incorrect yield depiction of debt schemes

Excluding cash portion while calculating the yield of a debt scheme can jack up overall fields of a scheme.

Debt MF returns may remain subdued on RBI's accommodative stance

Money managers say investors to look at medium-duration bonds

Overall exposure of debt mutual funds to NBFCs below 10%: CARE Ratings

The amount held fell to Rs 0.72 trillion, compared with Rs 1.26 trillion in September 2018

Wealthy PF investors may opt for debt funds as Budget changes tax rule

Budget proposes that interest on the PF contributions (employee contribution) above Rs 2.5 lakh per annum be taxable with from April 1, 2021